Toyota Can't Make Enough Priuses to Meet Demand

[AMERICA 123]

Originally Posted by PhishPhood

Yep the $1.2 Billion plant in TX was a massive risk. And right now it's a very questionable risk. But because they have no debt and make about $1.1 Billion in profit every month it's something less than a speed bump.

I'm sure when it was greenlighted 3-4 yrs ago they didn't foresee any kind of $4 or $5 or $6 fuel coming this early. The entire industry was blindsided. OTOH since they have no debt there is no payback period that has to be met. If it took 10 yrs or 15 yrs to pay back the investment instead of 5-7 yrs, oh well.

Will you ever post numbers concerning Toyota that even approximate an honest attempt ?

You seem to forget the admitted cost over runs in the two certain and the one possible category they themselves provided information on - of which they got dipped MORE THAN ONCE - and thats not just in regards to Texas .

These were centered around

1.) Undisclosed.

2. ) Product design delays.

3.) Last minute product design delays

4.) Supposedly some construction related delays

5. ) Supposedly late adds to the plant area for subcontractor expansion

6. ) 5.7L Engine development delays

7. ) Last minute 5.7L development delays

......These also added a bunch of other costs including producing the trucks , parking them outside in the rain and weather, and then later adding the engines.

Also, added extra costs of producing and shipping a batch of 5.7s from Japan and possibly extra costs to 'hurry up' the Alabama engine plant or something similar or related

8. ) Katrina related expenses

Then there were the costs to upgrade Princeton IND - which were high end of normal - thats what we know.

Add them all up and you have a range of approx. something like 1.9 billion plus to who the hell can really remember now - somewhere in the 2-3 billion range easy.

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Then there are the other 'extra' ordinary cost numbers to consider

1. ) An announced billion dollar advertising and marketing plan

2. ) Additional late add promotional expenditures.

3. ) All the much , much higher than expected rebate and incentive expenditures

4. ) The much higher than expected warranty - recall - customer support costs.

5. ) Some additional miscellaneous relating to things like inventory movement and production programming change ups and delays etc - sorta' normal teething problems.

Go put a pen to it and a fair estimate is that the all NEW Tundra PROGRAM represented an additional total expenditure of somewhere between approx 3.0 - 4.0 - maybe more BILLION DOLLARS .

Some of that range does depend on how you 'price' the alternative costs if they hadn't gone ahead with an all new truck but done something else.

And finally, every one they've made may help create other down the road unexpected warranty etc costs .

[jtrav91]

Originally Posted by GMC-70

If it were truly about being green these people would buy an efficient auto that already exists on this planet--in other words--buy a used car!

Green means both EFFICIENCY and EMISSIONS. Buying a vehicle for the sake of MPG only means disregarding problems with carbon and smog.