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Toyota: Weak truck sales no excuse for unused capacity


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James B. Treece

Automotive News

July 23, 2007 - 12:01 am

 

 

Indiana Slowdown

 

TOYOTA CITY, Japan - Toyota Motor Corp. President Katsuaki Watanabe isn't happy.

 

Toyota's truck plant in Princeton, Ind., has suffered along with some other U.S. truck plants from rising gasoline prices. Output is down notably from three years ago.

 

"Indiana now seems to have some surplus capacity," Watanabe told Automotive News. "The problem is that it was prepared for a fixed platform or a certain model only. That's why the plant couldn't cope with changing demand."

 

The Princeton plant makes the Sienna minivan, Tundra pickup and Sequoia large SUV.

 

The lineup doesn't include any fuel-efficient vehicles that could pick up the slack when sales of gasoline-thirsty trucks fell.

 

Princeton's predicament shows the need for greater production flexibility at Toyota's overseas plants. Most of those plants are devoted to a single high-volume product and its siblings. For example, Toyota's plant in Georgetown, Ky., builds the Camry and the Camry Solara.

 

Toyota is preparing to remake its flagship Takaoka plant in Japan into an ultraflexible facility capable of building eight models on the same line. The lessons in flexibility that it learns there should be applied overseas, too, Watanabe says.

 

"We should never be bound by a fixed concept, such as at Georgetown we could only produce Camry or Solara," he says.

 

"We should have a more flexible approach."

 

You may e-mail James B. Treece at jtreece@crain.com

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I just can't get over Wantanabe's sudden epiphany...

"We should never be bound by a fixed concept, such as at Georgetown we could only produce Camry or Solara," he says.

 

"We should have a more flexible approach."

Holy cow, what a radical notion!

 

Captain Wantanabe to the rescue!

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Watanbe, wasn't he assigned as Toyota CEO because he found a way to pick up leftover rice pretty fast?

 

I hope he stays Toyotas CEO till the Japanese gov thinks Toyota needs an SOS check.

 

 

I think FORD and GM will go bankrupt long before TOYOTA. FORD is almost there and GM isnt that far behind.

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I hope he stays Toyotas CEO till the Japanese gov thinks Toyota needs an SOS check.

 

I thought the Japanese gov was already giving their auto industry subsidies. I'm no economic expert, but I thought they were basically giving away loans almost interest free to build plants in other countries. That and they've been propping up the value of the yen for quite some time.

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GM just regained it's title of #1 automaker, and Ford global sales are doing well. their just not doing as well in north America. Bankruptcy, I don't think so.

 

GM could sell a billion cars tomorrow and still go bankrupt. If you ain't making money you will go bankrupt sooner or later. I dont wish either GM or FORD to fold but eventually they will need to show profit on a cosistent basis like TOYOTA or HONDA otherwise they are toast.

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GM could sell a billion cars tomorrow and still go bankrupt. If you ain't making money you will go bankrupt sooner or later. I dont wish either GM or FORD to fold but eventually they will need to show profit on a cosistent basis like TOYOTA or HONDA otherwise they are toast.

 

For not wanting Ford and GM to fail, you sure are a Negative Nancy.

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GM could sell a billion cars tomorrow and still go bankrupt. If you ain't making money you will go bankrupt sooner or later. I dont wish either GM or FORD to fold but eventually they will need to show profit on a cosistent basis like TOYOTA or HONDA otherwise they are toast.

I'll say it one more time andy82471 they are turning profit outside of the US. It's in the US that misguided children just as your self favor Asian products over domestics. If you understood the long term economic affects of your position then you would never buy Asian cars period. Do you have trouble finding a job now, let alone a good paying job? wait until you squash all American manufacturing jobs by not buying goods we(America) make. You wont even be able to afford a used Asian car that you love so much! People like you coupled with our free trade agreements and, manufacturers desire to find cheap labor leaving the country to do so. Are causing our standard of living to drop. Just like me you will likely never have even what your parents did once you start working!

Edited by Furious1Auto
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For not wanting Ford and GM to fail, you sure are a Negative Nancy.

 

Why would pointing out the truth be construed as "Negative Nancy"? FORD (and GM to a lesser extent ) is selling their arms and legs just to remain afloat. Eventually they will run out of assests to sell and what happens then ? The UAW will only give up so much in terms of wages and benefits. The fact of the matter is FORD and the other domestic needs to sell desirable cars ( and not just gas guzzling trucks and SUVs) at a profit in North America. You cannot cut production indefinitely.

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Why would pointing out the truth be construed as "Negative Nancy"? FORD (and GM to a lesser extent ) is selling their arms and legs just to remain afloat. Eventually they will run out of assests to sell and what happens then ? The UAW will only give up so much in terms of wages and benefits. The fact of the matter is FORD and the other domestic needs to sell desirable cars ( and not just gas guzzling trucks and SUVs) at a profit in North America. You cannot cut production indefinitely.

Are you suggesting that we should do as Toyota and, advertise that our cars get better fuel mileage than they actually do to draw new customers. The Prius was advertised at 60 MPG for a year. while the average owner was actually getting 45 MPG. I refuse to drive a sub-compact.

My mid sized Fusion actually gets better than 30 MPG.

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Edited by Furious1Auto
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Why would pointing out the truth be construed as "Negative Nancy"? FORD (and GM to a lesser extent ) is selling their arms and legs just to remain afloat. Eventually they will run out of assests to sell and what happens then ? The UAW will only give up so much in terms of wages and benefits. The fact of the matter is FORD and the other domestic needs to sell desirable cars ( and not just gas guzzling trucks and SUVs) at a profit in North America. You cannot cut production indefinitely.

 

Selling their arms and legs? Neither Ford nor GM have really sold much of anything that have significantly contributed to the health of their respective companies. If you think getting rid of Jaguar and Land Rover is going to hurt Ford's bottom line, you obviously don't understand their history very well. Besides, nothing is even in stone yet regarding the sale of those assets. Ford has already solidified its retail market share in North America. 90% of Ford's monthly sales losses over the course of this year can be attributed to reductions in low/no-profit rental fleet sales. Residuals on Ford vehicles are up across the board, the quarterly losses are shrinking, and market share is stabilizing. Couple this along with the huge strides in quality, and Ford is poised to be rather successful in a couple years' time. You're a Negative Nancy because all you see is the bad news that is continously blown out of proportion by the media.

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Selling their arms and legs? Neither Ford nor GM have really sold much of anything that have significantly contributed to the health of their respective companies. If you think getting rid of Jaguar and Land Rover is going to hurt Ford's bottom line, you obviously don't understand their history very well. Besides, nothing is even in stone yet regarding the sale of those assets. Ford has already solidified its retail market share in North America. 90% of Ford's monthly sales losses over the course of this year can be attributed to reductions in low/no-profit rental fleet sales. Residuals on Ford vehicles are up across the board, the quarterly losses are shrinking, and market share is stabilizing. Couple this along with the huge strides in quality, and Ford is poised to be rather successful in a couple years' time. You're a Negative Nancy because all you see is the bad news that is continously blown out of proportion by the media.

Likely less time than that, we shall see. No one ever expected GM to be over taken by Toyota in such short order. I'm glad their on top again, they may not be Ford but they are American owned and by proxy still a victory for Ford also. I don't think that any automaker will ever hold the #1 spot for very long anymore. the products are comparable in price and features per segment. It's more likely that the manufacturers will pass around the title per quarter like a hot potato!

Edited by Furious1Auto
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Selling their arms and legs? Neither Ford nor GM have really sold much of anything that have significantly contributed to the health of their respective companies. If you think getting rid of Jaguar and Land Rover is going to hurt Ford's bottom line, you obviously don't understand their history very well. Besides, nothing is even in stone yet regarding the sale of those assets. Ford has already solidified its retail market share in North America. 90% of Ford's monthly sales losses over the course of this year can be attributed to reductions in low/no-profit rental fleet sales. Residuals on Ford vehicles are up across the board, the quarterly losses are shrinking, and market share is stabilizing. Couple this along with the huge strides in quality, and Ford is poised to be rather successful in a couple years' time. You're a Negative Nancy because all you see is the bad news that is continously blown out of proportion by the media.

What like we get comped $75.00 an hour, the media is so full of shit!

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