Prius to USA, All Tundras to Texas

[Rex Raider]

Toyota to build Prius in U.S.

Highlander to Indiana; all Tundra to Texas

ERLANGER, Ky. (July 10, 2008) – Toyota is responding to changes in consumer demand and improving the production efficiency and stability of its North American operations by adjusting production mix at three plants. The changes include the addition of the Prius hybrid sedan to its North American lineup.

The changes are as follows:

o Prius will be built at a plant under construction in Blue Springs, Miss. Production is scheduled to begin in late 2010. Prius, which will join the Kentucky-built Camry Hybrid as the second Toyota hybrid built in North America, enables Toyota to better respond to increased consumer demand for hybrid vehicles.

o The Highlander mid-size SUV, originally scheduled to be built in Mississippi, will now be manufactured in Princeton, Ind., beginning in Fall 2009.

o Production of the Tundra full-size pick-up truck, currently built in Indiana and Texas, will be consolidated at the San Antonio plant in Spring 2009.

In addition, Toyota will temporarily suspend Tundra and Sequoia production beginning August 8 due to the declining overall market for full size trucks and SUVs. Production is scheduled to resume in early November. Team members at both facilities, as well as the Huntsville, Ala. plant that builds Tundra and Sequoia engines, will continue to be provided work.

“The truck market continues to worsen, so unfortunately we must temporarily suspend production. But this good news about production mix demonstrates our long-term commitment to our North American operations and to our team members, supplier partners, and communities where our plants are located,” said Jim Wiseman, vice president/external affairs for Toyota Motor Engineering & Manufacturing North America (TEMA). “By using this downturn as an opportunity to develop team members and improve our operations, we hope to emerge even stronger.”

[likearock00]

Boy, I bet they're wishing they never put that much money into the new Tundra now. They've got plenty of cash so this probably doesn't hurt too bad, but I'm sure they're disappointed to say the least.

[steinravnik]

This makes sense, and has been speculated on GMI for a while.

[ericmvest]

Originally Posted by likearock00

Boy, I bet they're wishing they never put that much money into the new Tundra now. They've got plenty of cash so this probably doesn't hurt too bad, but I'm sure they're disappointed to say the least.

The Tundra in many ways is not as good as General Motors' full size pickups, which came out approximately the same time. The Ford F150 and Dodge Ram are coming out with significantly improved major model changes later this calendar year. The Tundra may be the worst full size pickup in a declining market.

[lio45]

Originally Posted by likearock00

Boy, I bet they're wishing they never put that much money into the new Tundra now. They've got plenty of cash so this probably doesn't hurt too bad, but I'm sure they're disappointed to say the least.

It might actually be a strategy that makes sense: be competitive in all market segments, period. It's the next best thing to a crystal ball.

Market shifts to small cars? Good thing you have a competitive small car in your lineup.
Market shifts to large trucks? Good thing you have a competitive fullsize truck in your lineup.

etc.

The reason GM is going belly up is PRECISELY because they never adopted the exact thinking that lead Toyota to invest in the Tundra.

[Golden Oldsy]

Sure GM can make one tiny mistake and the media makes a mountain out of a molehill. But toyota, they specifically build a truck plant, make the truck bigger and thirstier than anything on the market at a time of rising fuel costs and we probably won't hear a peep about it. The media will just praise Toyota for building hybrids here.

[BigThreeForever]

Originally Posted by lio45

It might actually be a strategy that makes sense: be competitive in all market segments, period. It's the next best thing to a crystal ball.

Market shifts to small cars? Good thing you have a competitive small car in your lineup.
Market shifts to large trucks? Good thing you have a competitive fullsize truck in your lineup.

etc.

The reason GM is going belly up is PRECISELY because they never adopted the exact thinking that lead Toyota to invest in the Tundra.

Nailed it! Absolutely spot on!

What a shame all those multi-millionaire, Ivy League MBAs in GM's boardroom never figured that one out.

[member12]

Originally Posted by lio45

It might actually be a strategy that makes sense: be competitive in all market segments, period. It's the next best thing to a crystal ball.

Market shifts to small cars? Good thing you have a competitive small car in your lineup.
Market shifts to large trucks? Good thing you have a competitive fullsize truck in your lineup.

etc.

The reason GM is going belly up is PRECISELY because they never adopted the exact thinking that lead Toyota to invest in the Tundra.

Exactly!

A diverse lineup means you won't have many surprises (pleasant or unpleasant) when the market rapidly shifts like it has over the last 8 months.

GM needs a very competative product at every segment that Toyota competes.

Great cars, crossovers, SUVs, and trucks of all sizes......Right now, if gas prices drop to $2.30/gallon (it's just as likely as $5.90/gallon), GM has no real competative mid sized trucks and SUVs, but they have great full sized products.

When the gas prices when up, they had great sports compacts, but average compacts and very out dated subcompacts....and no affordable hybrids (BAS doesn't count).

[mbukukanyau]

Originally Posted by ericmvest

The Tundra in many ways is not as good as General Motors' full size pickups, which came out approximately the same time. The Ford F150 and Dodge Ram are coming out with significantly improved major model changes later this calendar year. The Tundra may be the worst full size pickup in a declining market.

You forget the Titan

Originally Posted by member12

Exactly!

A diverse lineup means you won't have many surprises (pleasant or unpleasant) when the market rapidly shifts like it has over the last 8 months.

GM needs a very competative product at every segment that Toyota competes.

Great cars, crossovers, SUVs, and trucks of all sizes......Right now, if gas prices drop to $2.30/gallon (it's just as likely as $5.90/gallon), GM has no real competative mid sized trucks and SUVs, but they have great full sized products.

When the gas prices when up, they had great sports compacts, but average compacts and very out dated subcompacts....and no affordable hybrids (BAS doesn't count).

This horse is long dead. Stop beating it

[mpsrent]

The point is, Toyota is reacting promptly to address a serious issue. That's good business.

[Uzzy]

Whoa! An Automaker building cars in North America is responding to Market Demand? Nobody tell the CAW, or there's gonna be a blockade!

[megeebee]

As I suspected all along, Honda was the smart one.


.

[neshapop]

Did all Toyota employees get a signal to spread graet news about Prius but somehow to tuck under the carpet that all Tundra production is shut down for next 3 months?

I guess all media got their cookies to form "the truth" about almighty Toyota already...

I think the news should sound like, "We are shutting down our superb truck plants for 3 months and we will build Prius someday in the future".

Toyota plans three-month shutdown of Tundra pickup plant in Texas
Published: Thursday, July 10, 2008 | 9:24 AM ET
Canadian Press: Dee-Ann Durbin, THE ASSOCIATED PRESS

DETROIT - Toyota Motor Corp. is planning significant changes to its U.S. manufacturing plants because of the rapid market shift away from trucks and sport utility vehicles.

A Toyota official said Thursday the company plans a three-month shutdown at a plant in San Antonio, Texas, that makes the Tundra pickup.

Along with the inventory-trimming shutdown at the Texas factory, which began producing the full-size pickups in November 2006, the official said Toyota plans to stop making pickups in Princeton, Ind., shifting the Indiana plant to the Highlander SUV.

The official asked not to be identified because a formal announcement from the Japanese automaker wasn't expected until later in the day.

Toyota also plans to start producing the Prius hybrid in the United States at a plant it is building in Mississippi.

[TJ95GAGT]

Originally Posted by mpsrent

The point is, Toyota is reacting promptly to address a serious issue. That's good business.

It makes it easier when A) media will paint a rosey picture no matter what and B) there is no one blockading your headquarters for shuttering a plant a year and half from now - not exactly a prompt response.

[New_Mexico_Sunset_on_Rt66]

Originally Posted by ericmvest

The Tundra may be the worst full size pickup in a declining market.

True, it get's worse mileage than the Silvy/Sierra. And you can spend all day arguing which has the better interior. Interiors are subjective. There are pros and cons to each's interior.

But you still have the whole horde of people loyal to Toyota who will buy anything they make, and believe anything they say. I support GM, but it's not idol worship. There is a difference. I realize they are just a company, not some kind of "messianic-being" capable of saving mankind as some would describe Toyota.