Toyota Supplier Expands in China;

Toyota, a leading Japanese car manufacturer whose models can be purchased at a Toyota Boston dealer, has announced that their largest parts supplier, Denso Corp., will be expanding its production over the next year. Denso is a Chinese parts supplier that has produced parts for Toyota. The move comes in the wake of several labor protests at other Toyota suppliers throughout China. Labor costs in China are though to be increasing and Denso made the move in order to respond to those concerns. GM and Volkswagen, whose models can be found at a Chevrolet Chicago dealer and a Volkswagen Peoria dealer, have not had to deal with the Chinese labor strikes.

There will be more units of capacity added to its production facilities in China. The units will be used to make air conditions for Toyota and other manufacturers. One of the company's plants was involved in a worker's strike last June, but that particular company was joint operated with another company. The workers held a four and half day strike that was later resolved, and the strike was over worker wages.

Chinese passenger car sales have risen over the past year and as a result there is more demand than ever for companies like Denso to produce vehicles. Toyota's models like the Corolla have increased in demand, while Honda's models have also been in popular demand in China. Toyota and Honda are now major rivals in the Chinese car market and both companies anticipate increased demand over the next few years.

There have been eight strikes throughout 2010 so far and the manufacturers affected include Toyota, Honda, and Nissan. All three manufacturers are based out of Japan and are major rivals. Honda brokered a deal with its workers at a plant in Guangdong to increase their wages over 24 percent.