Building Boom At Toyota

Bertel Schmitt
by Bertel Schmitt
building boom at toyota

Toyota is getting out of the carmageddon-caused and recall-related funk and is moving forward with worldwide expansion plans. According to The Nikkei [sub], Toyota has resurrected all key projects planned before the financial crisis.

In Brazil, Toyota will build its second assembly plant. Plans had been put on hold when the financial crisis hit, now they are being revived.

With an annual output capacity of slightly more than 100,000 units, the plant will produce out small cars for the local market as early as next year.

Plans for the plant were drawn up in summer 2008, but the project was frozen as new-vehicle sales dropped. In the recovery since then, the Brazilian automobile market grew 11% to 3.14 million units last year. And through the first four months of this year, Brazil has surpassed Germany in auto sales to become the world’s fourth-largest market after China, the U.S. and Japan.

As reported by our man in Brazil, Fiat, VW and GM hold more than 60 percent of the Brazilian market. Toyota was in the #8 slot in May. Toyota hopes that the launch of a new model, designed especially for emerging markets will bump up its market share and ranking.

In the U.S.A., Toyota will bring a factory in t Mississippi on-stream in mid-2011. That facility was slated to start operations this year, but was put on halt. The plant will will churn out about 100,000 Corollas a year.

In China, the also originally suspended plant in Changchun is going ahead.

Once continent’s gain, is the other continent’s loss: Toyota will “consolidate” assembly lines in Japan and the U.K.

Join the conversation
  • FleetofWheel FleetofWheel on Jun 17, 2010

    "Toyota will bring a factory in Mississippi on-stream in mid-2011" Puzzling that Toyota does not opt to build a factory in Michigan and get a big quality boost from employing an all UAW assembly line work force.

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    • Mcs Mcs on Jun 17, 2010

      Not just Michigan. The GM Oklahoma City plant was new and would have been an excellent starting point for another manufacturer (and I have first-hand knowledge of the facility), but for some strange reason, none of them wanted it.

  • Mikey Mikey on Jun 17, 2010

    With all due respect to the two comments above. You would be shocked to know how little input the assembly line worker,UAW/CAW,or non union transplant assembler has to the final quality of the finished product.

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    • Ihatetrees Ihatetrees on Jun 19, 2010

      While I respect many UAW workers I have known, there are issues with unionized auto plants that make them uncompetitive. Specifically, the transplants have fewer work rules and better compensation practices - you get a bigger bump for gaining skills. (Yes - at transplants those with fewer skills get less pay). And while tax breaks the southern states are fair game for criticism, government help is hardly uncommon for UAW plants. Worker 'training' grants are common. And then there was the jobs bank - which no one in this thread actually has the stones to defend. Also state unemployment compensation is a huge hidden subsidy. For laid off UAW workers - many of whom are senior workers because their seniority entitles them to bid for a layoff - you can choose to be unemployed and the state and union will then collude to keep your paycheck whole... Freakin' insane.

  • Pgcooldad Pgcooldad on Jun 17, 2010

    Interesting photo. That is a Komatsu tractor to the right and looks like to the left also. The plant will have have Hitachi machinery, Asahi robots ... etc. Do Ya'll get it now??

    • Windswords Windswords on Jun 17, 2010

      No they don't get it. They think it's great that the thousand or so workers at that MS plant will take their paychecks to Wal-Mart to go buy stuff made in China.

  • Geozinger Geozinger on Jun 17, 2010

    I wonder how many cars Toyota thinks they can sell in North America with these plants? There is already a massive overcapacity issue here to start, how can this possibly help? And, why the US and not Mexico? The same goes for VW. That new mid-sized car better be a killer, otherwise I see shades of Westmoreland Township again.

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    • Silverkris Silverkris on Jun 17, 2010

      Well, Toyota just closed down the former GM-Toyota joint venture New United Motor Manufacturing Inc. (NUMMI) assembly plant in Fremont, CA, which produced Corollas and some light trucks. And they now are building up a plant in Mississippi to build Corollas? What a waste. But I guess those incentives given by MS were too attractive, as well as CA being a bit of a high cost state. Of course, when GM walked away from NUMMI due to its financial crisis a year and a half ago, Toyota felt no obligation to continue keeping it going - NUMMI became an orphan. Perhaps its California location may have weighed against it as well (distance from major parts suppliers, and there are no other vehicle assembly plants left in CA). However, the cars coming out of NUMMI were as high quality as anywhere else - and the workers took a lot of pride in their work, including the very last car produced, a red Corolla. Perhaps NUMMI was a victim of its own success as an experiment for GM and Toyota and the raison d'etre no longer was there after 1) GM learned some Japanese production practices and 2) Toyota learned how to produce in North America. NUMMI may have a new future a few years from now, it will be the site for the Tesla motors car assembly.