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NINETY EIGHT REGENCY

Report: Toyota to slow U.S. factory expansion

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Report: Toyota to slow U.S. factory expansion

Reuters |

June 20, 2007 - 6:30 am

NEW YORK (Reuters) -- Top executives at Toyota Motor Corp. are concerned the automaker has built too many factories in the United States and are urging it to hit the brakes on new plant building, The Wall Street Journal reported today on its Web site.

Former Toyota Chairman Hiroshi Okuda, the architect of Toyota's aggressive expansion outside Japan, and Shoichiro Toyoda, a senior member of Toyota's founding family, have expressed concerns that U.S. sales may not keep pace with the company's capacity increases, the Journal said. Both men sit on the automaker's board.

A weak yen, meanwhile, is making it advantageous for Toyota to expand manufacturing capacity and export cars from Japan.

The strategic shift means new U.S. factories are unlikely anytime soon, according to the report.

Tomomi Imai, a Toyota spokesman in Tokyo, declined comment on the report, saying only that the automaker had made no decisions on new U.S. plants as it had announced a new factory in Mississippi earlier this year.

The Journal said as a result of its strategy shift, Toyota scaled back plans for the $1.3 billion Mississippi assembly plant.

The plant was originally to have an annual production capacity of 200,000 units and open in 2009, it said. Instead the company announced it would have a capacity of 150,000 and open in 2010.

If U.S. demand for Toyota vehicles continues to climb, the company would likely respond by adding second assembly lines at existing plants rather than building new ones, it said.

It would also reduce U.S. labor costs by revamping its pay policies, aligning hourly wages for new hires more closely with prevailing manufacturing pay in regions where each plant is located, the paper said.

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NEW YORK (Reuters) -- Top executives at Toyota Motor Corp. are concerned the automaker has built too many factories in the United States and are urging it to hit the brakes on new plant building, The Wall Street Journal reported today on its Web site.
Where are the 'yota humpers that always say Toyota is helping our economy?!?!?! Where are the analysts that say the imports are the "new domestics" that will replace, and compensate for, the THOUSANDS of domestic automaker jobs that have been lost?!?!?! A special thanks thanks goes out to Joe Blow and his banker/media buddies buying and advocating ONLY imported vehciles! Without them, screwing the middle class over like we have in this country would've been virtually impossible.
Former Toyota Chairman Hiroshi Okuda, the architect of Toyota's aggressive expansion outside Japan, and Shoichiro Toyoda, a senior member of Toyota's founding family, have expressed concerns that U.S. sales may not keep pace with the company's capacity increases, the Journal said. Both men sit on the automaker's board.

Wonder why?

Is the market just THAT competitive? Do they envision a revival of the TRUE domestic automakers? Are the recent quality FAILURES and image F-UPs at Toyota already starting to take their toll??? Is it true that americans are growing tired of Toyota being cast in only a positive light as a hero without flaws?

A weak yen, meanwhile, is making it advantageous for Toyota to expand manufacturing capacity and export cars from Japan.
Where are all of the 'yota humpers now to tell us that what Detroit says about the Yen is bull$h!????? Where are all the loyal media elites that are programmed to do everything in their power to promote Toyota as an AMERICAN automobile at now?!?!?!
The strategic shift means new U.S. factories are unlikely anytime soon, according to the report.

LOL... All those jobs Toyota promised (through their smiling meetings and hollow handshakes at media puff parties) if only THEY could become the number one automaker.... GONE.... Just like that! Typical Japan Inc. business policies, project the smoke and mirrors until they get what the want. Then we, as americans, are left without pride, fruit, or labor, just looking stupid(ER)

Tomomi Imai, a Toyota spokesman in Tokyo, declined comment on the report, saying only that the automaker had made no decisions on new U.S. plants as it had announced a new factory in Mississippi earlier this year.
Typical "Look away while we stab you in the back" Toyota response. It's like baiting a deer while you fixing the scope of a rifle on it.
The Journal said as a result of its strategy shift, Toyota scaled back plans for the $1.3 billion Mississippi assembly plant.

So, not only are they going to STOP investing here in the future, they've also decided to go back on their word about existing projects.

It would also reduce U.S. labor costs by revamping its pay policies, aligning hourly wages for new hires more closely with prevailing manufacturing pay in regions where each plant is located, the paper said.

A.K.A. Kiss those well paying UAW-like jobs goodbye!!! And expect to see OLD workers traded out for new, cheaper workers.

Funny that none of the mainstream, oh-so-anxious-to-replace-domestic-automaker-jobs-with-Japanese-automaker-jobs didn't run this story. We all know how it would've been if the scenario were reversed, as we've all heard about the "downsizing" "bankruptcy" "death watch" "uncompetitive" etc. bull$h! so much that we can recite it in our sleep.

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Toyota backed themselves in a conner on that one. Import more vehicles? That won't settle to well with consumers. If they don't come from North America it is a hard sell. The good red-necks driving Toyota's will start to decline. I would love to see them say were not building in Miss and are going back to importing more vehicles. That would screw them good. Toyota didn't figure GM/Ford/DCX would get with it this quick. :AH-HA_wink:

Basically I agree with every word Future of GM said!

Edited by gm4life
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So it turns out that the whole PR-parade by building the Texas plant was all a folly. $1.2 billion dollars were spent on that plant, and now look...Tundras are sitting with six grand on the hood. Sales have increased, but isn't that to be expected with a brand new model (especially considering Ford and Dodge haven't had a major update in years)? With the way gas has been, Toyota should have known better. Now they are paying for their "baseball, apple pie, and Toyota" puffery with threats of unionization, multiplying quality glitches, and increasing criticism by the media.

The Tundra has basically become the Toyota version of the Excursion. Built big just to be big, without much else besides lots 'o horsepower to take on the long-established competition and terrible fuel economy to boot. I mean, Jesus, did Toyota learn ANYTHING from the sales of the Explorer tanking from #1 to #4 in a couple years? Were they sticking their fingers in their ears going "lalalala" when the press was berating Detroit for building big trucks and SUVs with poor fuel economy? Who was the marketing genius that thought it would be a great idea to build a $1.2 billion truck factory at a time when truck sales are tumbling downward by double-digit percentages? And soon the new deluxo-sized Sequoia will be out to fill the overwhelming demand of the 1,500 people that buy them each month.

They burned their hand on the stove and are now running back to mommy to make things all better. That is pretty much what this whole charade amounts to.

Edited by mustang84
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Didn't say they were going to cut production at existing plants, just lowering production at one plant thats being built. So they're not going to sell fewer American built cars, they're just going to import more cars to meet demand. Living in the real world, I see this as a smart business move and Toyota, just like GM, is a business and exists to maximize profits.

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While share every sentiment that Future of GM expressed, Satty is true in his thought as well. Every business out there seeks to maximize profits and unfortunately, the first avenue companies tend to go when cutting costs is in its workforce.

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this is a response to the UAW, saying.....unionize and we are out of here.

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