Toyota Trims Texas Truck Production
Timing is. Everything. ToMoCo spent $1.28b to build a state-of-the-art, full-size, full-size truck plant in Texas– just as the pickup market was starting to tank. The new state-of-the-art factory can crank-out 300k restyled Tundras a year. As production began, the Japanese automaker set a relatively low (for trucks) sales goal of 200k Tundras for the first year. They just fell short, in spite of Detroit-level incentives. Then, with the truck-based SUV market softer than Sponge Bob at bath time, Toyota's launched the redesigned Sequoia. So now Automotive News [sub] reports that they're cutting production of both vehicles. ToMoCo won't reveal the extent of the cutback, but they say they'll throttle back production rather than laying off workers. You have to wonder if and when Toyota may admit defeat, move Tundra production back to Indiana and convert the San Antonio plant to Camry, Corolla or even Prius production. ©2008 ttac.com
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I think it's better for them to bring Sequoia to TX than moving all the Tundra to IN. It's a newer plant and I guess both share the same platform... if they use a lean/flexible/whatever line, they can assemble there. In any case, both are truck plants, that will require HEAVY retooling to make cars if they want to do so. Anyway, they have a ton of cash, so they can do whatever they want and/or suits their needs better.
Given that Toyota sells something like half their trucks in Texas, it would seem likely that Indiana would be the one to make less trucks. Transportation costs would seem to be a factor hard to overcome.
Isn't there a plan to move Tacoma production from NUMMI to Texas and convert NUMMI to Prius?
TMMTX will keep Tundra production production will stay within TMMI and TMMTX. Toyota has a lot of flexibility with SIA, TMMI, and TMMK.