Toyota Putting The Brakes On Further Capacity In America
Toyota is not going to be expanding any plants in the United States, even as they are forced to absorb further production of the Toyota Camry as their assembly deal with Subaru winds down.
According to Just-Auto, Subaru’s Indiana facility built just under 100,000 Camrys in 2013, and the Georgetown, Kentucky plant that current builds the bulk of North American Camrys, is the busiest in the United States, turning out over 504,000 vehicles last year, with the Camry accounting for nearly 350,000 units.
With Avalon sales declining and the Venza reportedly being axed, there should be an additional 50-60,000 units of capacity. Even so, that leaves a shortfall, and Toyota is unlikely to increase imports of the Camry – which is built in Japan as well – increase beyond the handful it currently brings in.
The solution for Toyota will be to make better use of their current manufacturing footprint, through increased efficiencies. If Toyota wants to hang on to their “best-selling car” bragging rights, they’ll need to find some solution to the production deficit that appears to be looming.
And when I see other brands broken down by the side of the road and I pass by in my decrepit looking Corolla, I pat myself for choosing such a dull, boring transportation device.
Boring and appliance like reliability and economy is not a bad thing. It is good to have a vehicle that you can rely on. I do agree that the Venza is overpriced for what it is. Toyota has a lot of hard cheap plastics in all their vehicles but they are good reliable vehicles. But then most of the other manufacturers are making better and more reliable vehicles so Toyota is not alone anymore. Toyota cannot rely on their reputation alone for very much longer.
The Japanese automakers are just as interested in the Chinese market as the US, but there is still a lot of hatred and mistrust between China and Japan. World War II and the Japanese Imperialism in China left a bitter hatred of the Japanese. The Chinese like and trust the US more than they trust Japan. There still needs to be more time for China to heal their relations with Japan.
@petezeiss--I don't disagree with you just that it will take Toyota time to infiltrate the Chinese market. Toyota is already in China as VW, GM, Ford, Chrysler, BMW, and some others. Toyota is just as eager as the other manufacturers to get a piece of the growing Chinese market. The growth is no longer in the US market and that is why Toyota is not expanding capacity in the US. Asia is where the potential for future growth is.