Toyota Quickens Quest to Unseat GM - To build Toyotas at Subaru U.S. Factory by 2007

[mjd1001]

http://biz.yahoo.com/ap/051123/japan...a_gm.html?.v=6



TOKYO (AP) -- Toyota Motor Corp. is quickening its quest to unseat ailing rival General Motors Corp. as the world's biggest automaker with reported plans to start manufacturing up to 100,000 Toyota vehicles at a Subaru factory in Indiana.

Word of Toyota's ramped-up production schedule comes just days after money-losing GM said it will close 12 facilities by 2008 in a move that will slash the number of vehicles it is able to build in North America by about 1 million a year.

Chipping away at GM's lead will also be a new Toyota pickup truck plant scheduled to open next year in San Antonio, Tex., that will add an additional 200,000 vehicles to Toyota's annual capacity. The Japanese company's output will be boosted by another 100,000 vehicles in 2008, when Toyota's new RAV 4 plant comes online in Canada.

Under the latest expansion plans, the world's No. 2 automaker has asked Fuji Heavy Industries, maker of Subaru autos, to start building Toyotas in 2007 at a Lafayette, Ind., factory operated by Fuji's wholly owned subsidiary Subaru of Indiana Automotive, the Asahi newspaper reported Wednesday, without citing sources.

Fuji teamed up with Toyota in October after ending a five-year tie up with GM, which sold its 20 percent in the Japanese company. Toyota, based in Toyota city in central Japan, bought a 8.7 percent stake from GM for about $315 million to become Fuji's top shareholder.

GM's gambit with Fuji was largely deemed a flop. But access to Fuji's plants will could help Toyota boost production at a time of soaring sales, analysts say, although Fuji has only the one plant in North America, so additional capacity will be limited.

Completed in 1988, the Indiana factory was built under a joint-venture agreement between Fuji and Isuzu Motors Ltd. Fuji bought out Isuzu's share in the venture and became sole operator of the plant in 2003.

After GM's latest cost cuts, the company will be able to build about 4.2 million vehicles a year in North America, down 30 percent from 2002. Toyota is expected to have North American capacity of about 1.81 million cars by then, up from 1.44 million vehicles last year, Toyota spokesman Dan Sieger said Monday.

Full article at link above.

[MCGARRETT]

I might not be a math wizard, but 4.2 million is still more than 1.8 million, right?




The continual kicking of GM in the nuts continues by the media continues!!!

[Ultra Magnus]

I might not be a math wizard, but 4.2 million is still more than 1.8 million, right?

The continual kicking of GM in the nuts continues by the media continues!!!

That is right but Toyota is looking globally. GM will probably be the leader in North America for quite some time. But when you look at the whole scale of products around the world, Toyota isnt that far behind.

[TaHoE]

I will say it again, and again, "Number One" means nothing anymore. Let Toyota have it, honestly I could care less. GM is focusing on quality, getting rid of recalls, becoming more profitable. Meanwhile the cycle is at the beggining stage at Toyota, they are becoming bigger, and soon they will start to purchase more companies to pursue their "#1" title, it's exactly what GM did back in the begging of the century. The growing pains already show at Toyota. So am I worried about Toyota? Sure. Am I upset that GM won't hold on to #1? Hardly. #1 doesn't last forever, eventually Toyota will be knocked down from #1 as well, and the cycle will continue. So please press, stop beating the dead horse.

[GTOobsession]

The one thing that bothers me about all of this is that its our own fellow Americans that are putting GM in this position to need to cut its capacity and lay off 30,000 workers with families to feed. I truly despise all imports, and not because of the fact that they are from other countries but the fact that the auto industry is such a large part our Economy, and even though some of the imports are produced in America, producing American jobs, any real profits are going overseas, and the jobs that the Big Three have had to cut because of Toyota arent being replaced in the US. I wish i could reach over and smack the clowns i see driving a Toyota or any import with a huge sticker with an American flag on it. Or my Uncle who worked at Chrysler for 30 years but just traded his Plymouth in for a Toyota Echo. What country are you supporting by buying an import? Not only this, but the Automobile has been an American icon since its creation. Just like China and Japan are known for producing electronics. Now ill admit that GM has made a few mistakes in the past when it comes to pricing and the content of its vehicles, but they have made incredible improvements in these areas recently, but few seem to notice it. I work for a supplier for GM and if everyone went out and bought a Toyota I wouldnt even have a job, and either would about 1 million other people throughout the US. Thats even part of the reason I bought my Silverado SS, not only is it one hell of a truck, its also equipped with the control arms my company makes. I take care of GM, and GM takes care of me. Plain and Simple.

[Perian]

I hear through the grapevine that a Scion model will be produced in the Sube factory.

[ChevroletRevived]

Um, don't you think it's a sad day for our country, the biggest and most powerful, to not have the number 1 automaker? I want GM to hold on to No. 1 as long as they can...I understand and agree with your logic that once Toyota is No.1 they will have nowhere to go and be knocked down again.....but something in me wants GM to be No.1.....

[camaro_freak]

I truly despise all imports, and not because of the fact that they are from other countries but the fact that the auto industry is such a large part our Economy, and even though some of the imports are produced in America, producing American jobs, any real profits are going overseas, and the jobs that the Big Three have had to cut because of Toyota arent being replaced in the US.

The rate BIG 3 will start cutting plants will put the "imports" in a situation to bring those lost jobs back to the community by bringing their plants in. I see that as a benefit not a loss. Domestics fumble and the imports step in to fill the gap. Is that moral? maybe not Is it fair? maybe not is it legal? Yes, and they are doing exactly what our constitution allows - CAPITALISM

I wish i could reach over and smack the clowns i see driving a Toyota or any import with a huge sticker with an American flag on it. Or my Uncle who worked at Chrysler for 30 years but just traded his Plymouth in for a Toyota Echo. What country are you supporting by buying an import?

so by supporting America you mean buying US vehicles that are made in Mexico or Canada? Maybe those GM vehicles should have little Mexican or Canadian flags? oh wait... how about putting a Japanese flag on the Pontiac Vibe that is basically a Toyota underneath!

It works both ways now... GLOBAL ECONOMY

Not only this, but the Automobile has been an American icon since its creation. Just like China and Japan are known for producing electronics. Now ill admit that GM has made a few mistakes in the past when it comes to pricing and the content of its vehicles, but they have made incredible improvements in these areas recently, but few seem to notice it.

GM has made countless mistakes which they are now paying dearly for and not just pricing and content of vehicles. Improvements don't mean squat unless you can change perception. That is something GM needs to figure out and implement quickly and I have no idea how they will do it.

I work for a supplier for GM and if everyone went out and bought a Toyota I wouldnt even have a job, and either would about 1 million other people throughout the US. Thats even part of the reason I bought my Silverado SS, not only is it one hell of a truck, its also equipped with the control arms my company makes. I take care of GM, and GM takes care of me. Plain and Simple.

unfortuately GM won't be taking care of you (suppliers) much longer if it continues shedding jobs and plants to stay alive....ie putting the hurt everyone who supplies GM. They don't have to do anything for you even if you buy from GM. They are just trying to stay afloat by any means possible.

[nachomanroxorz]

so by supporting America you mean buying US vehicles that are made in Mexico or Canada? Maybe those GM vehicles should have little Mexican or Canadian flags? It works both ways now... GLOBAL ECONOMY

GM has made countless mistakes which they are now paying dearly for and not just pricing and content of vehicles. Improvements don't mean squat unless you can change perception. That is something GM needs to figure out and implement quickly and I have no idea how they will do it.

"Made in Mexico". You mean assembled. And there's a HUGE difference in those words.

I agree with the second part I quoted from you, but the first part is a little absurd. What would you rather, as an American, have as a job --> Working blue collar on the factory line for Fujio Cho, OR, working as a GM/Ford Engineer with a white collar job in Detroit designing the engines, transmissions, cars (and all of the supply chain management, and other umpteen high paying jobs tied with GM and suppliers)?

Most Toyota design in the US these days is artistic in nature with some cheap art students in a California studio. Most of the components in a Camry were designed in Japan. Thats where the "big" money goes when you buy your Land Cruiser, to those workers who design the next "VVT-i" engine or the next Scion, or the next 8-speed transmission....in Toyko or Toyoda. Not to some poor shlepp on the factory line in Kentucky with a GED slapping Camrys together from 60% imported content.



If you think the work that goes in to building a Camry in the US in any way rivals all of the engineering work (New 3900 engine, new stretched platform, new supplier contracts, etc. etc.), management, and lastly assembly work that goes into a Pontiac G6, you can only be delusional.

With our buying habits these days, all engineering jobs will go to Japan, Korea, and India, and we'll be lucky to get 15 bucks an hour at the Toyota factory. Maybe save up enough to buy a Playstation from Sony designed in Japan because our American X-box suxorz yo.



I swear, some of you folks think a job is a job is a job. Well its not. Not unless you LIKE working at the low end of the food chain for your bosses in Japan.

[mbukukanyau]

The Subaru team refused to work with Saab on the 9-6X, Saab on the other hand did did not want a Boxer for a Saab AKA the failed 9-2X.. they did not want Subaru to fit its V6 Turbo in there...
Becouse I think they were not from Japan.
I guess there was in Fuji a resentment for GM

[camaro_freak]

all good points nachoman - nice nickname by the way . I'd like to keep our talent in this country and keep the jobs that pay well then those that don't. But unfortunately not all Americans can get the education they need.

I'm just trying to play devils advocate when someone posts an enflamed comments.

"Made in Mexico". You mean assembled. And there's a HUGE difference in those words.

How much of a GM product is actually "assembled" from parts made in the US? How many parts on a GM product can you find stamped or labelled "MADE IN CHINA"

It would be great if a domestic car was designed, engineered, built, and assembled entirely in this country, but it doesn't happen anymore so anyone "flaming" about driving foreign cars should just be quiet.

[dav305z]

The rate BIG 3 will start cutting plants will put the "imports" in a situation to bring those lost jobs back to the community by bringing their plants in. I see that as a benefit not a loss. Domestics fumble and the imports step in to fill the gap. Is that moral? maybe not Is it fair? maybe not is it legal? Yes, and they are doing exactly what our constitution allows - CAPITALISM

I highly doubt Toyota would touch those workers with a ten foot pole. Most are older, and pretty close to retirement. More importantly, they're UNIONIZED. Toyota is not going to let UAW workers in their plants, even if they gave up membership.

And of course, a former GM worker would be foolish to renounce their membership because GM might then be able to stop paying pensions, which amount to more than what a worker would ever make in a Toyota facotry.

[kenman923]

Maybe if Toyota buys Mitsubishi, they could achieve their goal.

[asim]

Maybe if Toyota buys Mitsubishi, they could achieve their goal.

Haha...no. Mitsu would drive them and Toyota straight into the ground.

[espo19047]

It would be great if a domestic car was designed, engineered, built, and assembled entirely in this country, but it doesn't happen anymore so anyone "flaming" about driving foreign cars should just be quiet.

Please dont tell people to keep quiet.. I would never tell you not to write some of the things you write..