Report: Toyota Set To Announce 8th North American Assembly Plant

[Perian]

Link: http://biz.yahoo.com/rb/070227/toyot...lant.html?.v=1

Toyota to build SUV plant in Mississippi

TOKYO (Reuters) - Toyota Motor Corp. plans to build a sport utility vehicle plant in the U.S. state of Mississippi for around 100 billion yen ($830 million), a newspaper reported on Tuesday, the latest sign of its pressing need for capacity to keep up with booming demand.

The plant, to come on line in 2009, will build the Highlander model and is set to have an annual production capacity of 150,000 units, the Nikkei business daily paper said.

A separate report from Kyodo news agency put the investment figure at 200 billion yen and output capacity at 200,000 units a year. The plant will create about 2,000 new jobs, Kyodo also said, citing sources familiar with the matter.

Toyota, which may claim the title of the world's biggest auto maker from General Motors Corp. this year, has said it was reviewing possible locations for an eighth vehicle assembly plant in North America in an attempt to boost local production and stem a rise in imports.

[mcmlxv]

Welcome to the colony.

[ponchoman49]

More good news.

[dindak]

I'm just waiting for the day when over capacity hits this smug company.

[Havasavana]

Here's some info from the WSJ on this:

***
Japan's Toyota Motor Corp., hungry for manufacturing capacity in North America to offset potential trade concerns, is expected to pick Tupelo, Miss., as the site for an eighth North American assembly plant, pending a blessing by the company's board.

Individuals familiar with the matter said the new plant would likely produce the next-generation Toyota Highlander car-SUV crossover at a pace of 150,000 vehicles a year. Production is expected to begin in 2010.

The plant's manufacturing capacity and the timing for the start of production in part reflect growing concern among Toyota's top management about the health of the U.S. auto market over the medium to long term, according to individuals familiar with the company's planning. Toyota had been planning to start production in 2009 and tool up the plant to give it enough capacity to produce 200,000 vehicles a year.
***

I was kind of hoping they'd go with Yazoo City. Given Toyota's recently leaked memo about trying to pay wages more in line with those prevailing in the area, it'll be interesting to see what their pay scale is for this plant. Regardless, it's very good news for the people in that area.

[joey]

Well, at least Toyota is commited to America. GM wants to build more in Asia screwing the American worker. Toyota could have done the same, but knows where it's bread is buttered. Americans have to work to buy your product. GM doesn't understand that. GM sales will continue to drop. Now that half of Michigan is out of work, who's gonna buy a car. GM is slitting their own throat in the long run.

[VCDJ]

Originally Posted by joey

Well, at least Toyota is commited to America. GM wants to build more in Asia screwing the American worker. Toyota could have done the same, but knows where it's bread is buttered. Americans have to work to buy your product. GM doesn't understand that. GM sales will continue to drop. Now that half of Michigan is out of work, who's gonna buy a car. GM is slitting their own throat in the long run.

I agree with you 100%. GM is building cars and truck in Mexico. Toyota and honda are building more and more cars each year in America.

[red_xtreme95]

GM has no choice but to build out of america because of the UAW...they are killing the US auto industry... just remeber there are still 54 plants here in the US... if more people would by GM those workers wouldnt be out of work...

[SJZ3]

They talked about this on Squawk Box this morning. They showed an interesting graphic. I think it was since 2003, the US automakers have fired over 100k employees (combined, not each) and Toyota has added around 3.6k. I think the producers intended to show the "success" of Toyota, but to me it showed that despite all the favorable press coverage about Toyota's US presence, in the only a small % of US jobs lost from not buying domestic are recovered by new jobs by "transplant" imports brands. They didn't show the figures for Honda or Nissan, but I doubt they are larger than Toyota.

[SJZ3]

Originally Posted by red_xtreme95

GM has no choice but to build out of america because of the UAW...they are killing the US auto industry... just remeber there are still 54 plants here in the US... if more people would by GM those workers wouldnt be out of work...

This same old statement again.

Toyota paid its workers higher wages than the average UAW worker last year. Some of the most efficient and productive plants in North America are UAW/CAW plants (I don't know the plant names, but the plant that builds the Impala is almost always ranked at the top, along with the Cadillac plant in the US).

[Brglotus]

Originally Posted by VCDJ

I agree with you 100%. GM is building cars and truck in Mexico. Toyota and honda are building more and more cars each year in America.

And this is only because GM and Ford can't afford to continue with union labor in this country. In order for them to make any money to survive, they have no choice but to hire cheaper labor. Hopefully when GM and Ford move all of their production out of the country they can return to without the unions. I hate to say it, but you can't blame them too much for moving out of the country for production.

[red_xtreme95]

Originally Posted by joey

Well, at least Toyota is commited to America. GM wants to build more in Asia screwing the American worker. Toyota could have done the same, but knows where it's bread is buttered. Americans have to work to buy your product. GM doesn't understand that. GM sales will continue to drop. Now that half of Michigan is out of work, who's gonna buy a car. GM is slitting their own throat in the long run.

Toyota is commited to being number 1 not the USA... we are fools to let the company be number 1 in the USA...it juat another form of world domanation for them...they didnt win in the War so they take american industry...Electronics, auto, and so on...take this post how you want i would rather an AMERICAN company to rule the world in the auto industry

[HoeyHimself]

Originally Posted by red_xtreme95

Toyota is commited to being number 1 not the USA... we are fools to let the company be number 1 in the USA...it juat another form of world domanation for them...they didnt win in the War so they take american industry...Electronics, auto, and so on...take this post how you want i would rather an AMERICAN company to rule the world in the auto industry

Took the words out of my mouth. Toyota, like any other company in the buisiness of making money, wants to do just that...make money. It's not about being dedicated to giving a gift to America, theres no kind thought behind it...it's buisiness! They want to take all the money from America that they can...it's profit..if their intentions were anything above making money, they wouldn't be a buisiness.

[hunchman]

...I "ms down dere in mrs sippi . has me a fun time.shot possums for lunch. and den talked about getting us a jobs at one of dose dere japanese factories. Yep theys kind folk for setting up there factoree down here. After I learn me some funny jokes to tell in my interview I hopes I gets me a job

[1487]

Toyota builds plants here to reduce the chances of American backlash against their increased marketshare. It's that simple and Toyota makes it clear in their documents. It has nothing to do with Toyota wanting to give American workers a better life or Toyota's commitment to the US middle class. Its a business move designed to keep their reputation in tact. Not that there's anything wrong with creating jobs, but one has to ask why Toyota cant ever create jobs in the parts of the country where skilled autoworkers have been laid off. That would make much more sense than building a new plant in the south where there is no legacy of auto assembly. Places like Michagan have the infrastructure and workforce in place but the Asians wont build up north.

The other thing is, why is toyota building plants on virgin land if they are so concerned about the environment? wouldnt it better "greener" to redevelop an old Big 3 plant in an urban area? Just food for thought. I'm sure the Toyota lovers will have tons of excuses.