Toyota May Build Scion In US - In Subaru Plant

[Perian]

Link: http://www.edmunds.com/insideline/do...ticleId=107584

The Nikkan Kogyo Shimbun reported Toyota could use spare capacity at Subaru's underused Subaru of Indiana Automotive (SIA) plant in Indiana to build the Scion, the super-successful Toyota youth brand that sold 100,000 units in 2004.

The paper said Toyota originally planned to build the Scion at its second, $650 million Canadian plant, in Cambridge, Ontario, which will start to build the new RAV4 in 2008.

The automaker has since calculated that it could go into SIA with less initial investment and could make ends meet even with small cars that have low profit margins, the paper reported.

Things evidently are moving fast with the Toyota-Subaru tie-up, announced October 5. Toyota now has bought an 8.7-percent stake in Fuji Heavy Industries, Subaru's parent company, for about $315 million. And already the Japanese media has reported Toyota wants to build 100,000 extra cars a year in the United States using SIA production lines.

Subaru, in turn, is looking to reduce costs by tapping into Toyota's supplier base, and reportedly has already asked Toyota to supply it with a new small car to sell in Europe.

[Perian]

This is no surprise. Toyota moves fast.

So long Saab 9-6X, hello Scion.

Another hundred thousand Toyota's for America!

Lucky us.

[gm_scott]

the super-successful Toyota youth brand

What crap, i hate scions

[AJR]

Originally Posted by Perian

This is no surprise. Toyota moves fast.

So long Saab 9-6X, hello Scion.

Another hundred thousand Toyota's for America!

Lucky us.

You are right, Toyota is fast. The company has the vision to know what it wants to do before anybody else does.

[paul8488]

Well GM didn't make much use if its costly tise with Subaru, so good for Toyota (I guess) for actually using their investment. Glad to see Scions won't be made in Canada. If they were I'd probably buy an xB, and hate myself for it.

[mjd1001]

I'm sure this was in the thinking for more than the last few days...but...

Maybe a really smart move for Toyota...with the way things have gone for GM and the UAW, Toyota probably faces less of a risk of their plants being unionized....or if they are unionized...it wouldn't cost as much as in the past.

Add to the fact that they can hedge their bets on the long term trend for the US$ to fall, it may make a ton of sense to build the cars for US sales here in the U.S.

[tgagneguam]

So, 100,000 units for three vehicles is the bar for describing something as super successful? I guess that that makes the HHR super-successful, too, since it's selling at slightly better than all of the Scions collectively?

I bet it won't ever be described quite as superlatively... and I'm sure the naysayers in the media won't admit that they were wrong about the HHR.

Off topic, I know, but if the importphiles get to berate GM, I get to do the same about imports.

[Nocturn_Bird]

Originally Posted by tgagneguam

So, 100,000 units for three vehicles is the bar for describing something as super successful? I guess that that makes the HHR super-successful, too, since it's selling at slightly better than all of the Scions collectively?

I bet it won't ever be described quite as superlatively... and I'm sure the naysayers in the media won't admit that they were wrong about the HHR.

Off topic, I know, but if the importphiles get to berate GM, I get to do the same about imports.

Couldnt have said it better myself.

[mbukukanyau]

Originally Posted by paul8488

Well GM didn't make much use if its costly tis with Subaru, so good for Toyota (I guess) for actually using their investment. Glad to see Scions won't be made in Canada. If they were I'd probably buy an xB, adn hate myself for it.

Why would GM use Subaru while it acquired Daewoo? Daewoo has Turned Suzuki into the fastest growing car company in N/A and Aveo outsell Scion..
Let Toyota go with the high cost manufacturer

[paul8488]

Well they shouldn't have bought Subaru in that case! I'm not saying they were wrong to sell Subaru... but that they were wrong to buy them in the first place if they weren't going to really take advantage of the pairing.

[member12]

Originally Posted by paul8488

Well they shouldn't have bought Subaru in that case! I'm not saying they were wrong to sell Subaru... but that they were wrong to buy them in the first place if they weren't going to really take advantage of the pairing.

Good post. I agree totally.

turbocharged engines and very good safety designs should be in the GM pipeline now, but GM didn't use Subaru (or Saab) to its full potential. They should sell Saab next if they can't make use of it. At least we have some Isuzu technology in the GM 355,360 trucks, as well as the Duramax engine.

[driverblogger]

Originally Posted by paul8488

Well they shouldn't have bought Subaru in that case! I'm not saying they were wrong to sell Subaru... but that they were wrong to buy them in the first place if they weren't going to really take advantage of the pairing.

I agree. Subaru didn't benefit from GM, GM just used Subaru for Saab.

I am glad to see Toyota and Subaru working together. I heard a rumor about Scion making a rally-inspired car named sR. And what is not a better rally car than the Impreza WRX? See where I'm going?

That, but Subaru and Toyota can share hybrid tenhnolgy and make awesome cars.

[dindak]

Who cares.. No more Subbie news needed. They are gonzo.

[Gm786]

I wonder how it's going to look. Will be keeping an eye on this developing story.

[cooper8830]

Im just mad they did't use Subaru's AWD for a Cobalt SS! That would have been sweet.