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Toyota says it will build Prius hybrid at new U.S. plant, cuts truck production

by Christine Tierney / The Detroit News

Responding to dramatic shifts in the U.S. auto market, Toyota Motor Corp. has revised its production plans and will now build its Prius hybrid car at a new plant in Mississippi that was originally slated to produce SUVs.

 

Toyota also will concentrate production of its large pickups, now assembled at two U.S. plants in Texas and Indiana, at its factory in San Antonio, the Japanese automaker said Thursday. The Princeton, Ind., plant will build the Highlander SUV that had been slated for the Mississippi factory now under construction.

 

Beginning on Aug. 8, Toyota will halt production of Tundra full-size pickups and Sequoia large SUVs for close to three months.

 

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"The truck market continues to worsen, so unfortunately we must temporarily suspend production," Jim Wiseman, a spokesman for Toyota's North American manufacturing operations, said in a statement.

 

Toyota's moves reflect dramatic shifts in the U.S. market driven by $4-a-gallon fuel prices. Light truck sales plunged 28 percent in the first half of the year and now account for 44 percent of the U.S. auto market, down from 55 percent six months ago.

 

Detroit's automakers already have revised their production plans, with General Motors Corp. announcing the closure of four truck plants in an acknowledgment that the shifts in demand seem permanent.

 

During previous oil shocks, Toyota had increased its presence in the U.S. market. But after launching a full-size Tundra early last year, Toyota has been buffeted in recent months.

 

Toyota's U.S. sales are down 6.8 percent this year, including a 14.7 percent decline in its highly profitable Lexus luxury vehicles.

 

In June, the automaker's U.S. sales tumbled 21.4 percent, even more than the overall market, as dealers found themselves stocked with Toyota and Lexus trucks they couldn't sell, and short of small, fuel-efficient cars. Sales of the Tundra plunged 53 percent in June.

 

According to J.P. Morgan's Tokyo-based analyst Takaki Nakanishi, Toyota has truck inventories equivalent to 99 days' supply, well above desirable levels.

 

The halt in truck output, announced Thursday morning to the factory workers, should help Toyota reduce those inventories.

 

In addition to the workers at the truck plant, workers at an engine plant in Alabama will be affected, too. Toyota said they would be provided work, but the company has laid off or will lay off some 750 temporary workers at the plants.

 

Under the production adjustments announced Thursday, Toyota is scheduled to begin production of the Prius hybrid in Blue Springs, Miss., in 2010.

 

It will consolidate full-size pickup truck production in San Antonio in the spring of 2009 and start making Highlander SUVs in Princeton in the fall of that year.

 

The automaker warned investors in May that its annual profits would fall for the first time in seven years because of weakening demand in the United States, where analysts estimate Toyota generates half its earnings.

 

You can reach Christine Tierney at (313) 222-1463

 

I doubt that these employees get any type of sub pay! And god knows what the unemployment benifits are in these states? Bet they are rethinking this whole not wanting a union thing now!

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Toyota says it will build Prius hybrid at new U.S. plant, cuts truck production

by Christine Tierney / The Detroit News

Responding to dramatic shifts in the U.S. auto market, Toyota Motor Corp. has revised its production plans and will now build its Prius hybrid car at a new plant in Mississippi that was originally slated to produce SUVs.

 

Toyota also will concentrate production of its large pickups, now assembled at two U.S. plants in Texas and Indiana, at its factory in San Antonio, the Japanese automaker said Thursday. The Princeton, Ind., plant will build the Highlander SUV that had been slated for the Mississippi factory now under construction.

 

Beginning on Aug. 8, Toyota will halt production of Tundra full-size pickups and Sequoia large SUVs for close to three months.

 

Advertisement

 

"The truck market continues to worsen, so unfortunately we must temporarily suspend production," Jim Wiseman, a spokesman for Toyota's North American manufacturing operations, said in a statement.

 

Toyota's moves reflect dramatic shifts in the U.S. market driven by $4-a-gallon fuel prices. Light truck sales plunged 28 percent in the first half of the year and now account for 44 percent of the U.S. auto market, down from 55 percent six months ago.

 

Detroit's automakers already have revised their production plans, with General Motors Corp. announcing the closure of four truck plants in an acknowledgment that the shifts in demand seem permanent.

 

During previous oil shocks, Toyota had increased its presence in the U.S. market. But after launching a full-size Tundra early last year, Toyota has been buffeted in recent months.

 

Toyota's U.S. sales are down 6.8 percent this year, including a 14.7 percent decline in its highly profitable Lexus luxury vehicles.

 

In June, the automaker's U.S. sales tumbled 21.4 percent, even more than the overall market, as dealers found themselves stocked with Toyota and Lexus trucks they couldn't sell, and short of small, fuel-efficient cars. Sales of the Tundra plunged 53 percent in June.

 

According to J.P. Morgan's Tokyo-based analyst Takaki Nakanishi, Toyota has truck inventories equivalent to 99 days' supply, well above desirable levels.

 

The halt in truck output, announced Thursday morning to the factory workers, should help Toyota reduce those inventories.

 

In addition to the workers at the truck plant, workers at an engine plant in Alabama will be affected, too. Toyota said they would be provided work, but the company has laid off or will lay off some 750 temporary workers at the plants.

 

Under the production adjustments announced Thursday, Toyota is scheduled to begin production of the Prius hybrid in Blue Springs, Miss., in 2010.

 

It will consolidate full-size pickup truck production in San Antonio in the spring of 2009 and start making Highlander SUVs in Princeton in the fall of that year.

 

The automaker warned investors in May that its annual profits would fall for the first time in seven years because of weakening demand in the United States, where analysts estimate Toyota generates half its earnings.

 

You can reach Christine Tierney at (313) 222-1463

 

I doubt that these employees get any type of sub pay! And god knows what the unemployment benifits are in these states? Bet they are rethinking this whole not wanting a union thing now!

F##K toyota and their workers... rice eating bast$$ds... may they crash and burn... union... ???? why do we want them to unionize .. they are our competition..... :censored::censored::censored::censored::censored:

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F##K toyota and their workers... rice eating bast$$ds... may they crash and burn... union... ???? why do we want them to unionize .. they are our competition..... :censored::censored::censored::censored::censored:

 

What a fuckstick reply.

 

Yes, Toyota is one of our competitors, but the vast majority of their workers are Americans! And all of them have families and friends who are Americans.

 

Why do you hate Americans?

 

Meanwhile, while Ford is closing U.S. plants and building Fusions and, soon, Fiestas is Mexico, here's what Toyota is doing: http://www.detnews.com/apps/pbcs.dll/artic.../807100430/1148

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F##K toyota and their workers... rice eating bast$$ds... may they crash and burn... union... ???? why do we want them to unionize .. they are our competition..... :censored::censored::censored::censored::censored:

Chrysler and GM are the competition too! And Toyota is building factories in the U.S.! Unlike Ford who is sending everything to Mexico! We just need to get into these plants and get them to become union shops!

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Why should Toyota workers want the UAW?Toyota workers already benefit from the UAW without having to exhibit any courage on their own part.The UAW kisses up to them and Toyota responds by treating them fairly.No union dues,a person can get ahead on his own,clean place to work,winning company,more status being non-union ,,why join the UAW?

Edited by Fatso
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The only employees to be laid off are temporary employees, and probably those at Toyota suppliers. Toyota will never allow the UAW or any other union in. They will leave the U.S. before that happens.

I am told that if an ex UAW worker applies at Toyota,they will not get hired

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I dont want the toyota plants UAW NO WAY!!! That would make the buy american saying nill.

A Toyota UAW would make them on par with us and thus increase there sales!!

Go to any school parking lot the "union" working teachers buy more foreign cars then american cars.

we support them and they crap on us. anyone look at the charter school pay?? About 10-15K less then public union teachers and NO charter schools test scores srent better so dont give me that BS line.

Public school teachers are underpaid and charter school teachers are being robbed.

So we dont need a UAW at Toyota NO WAY!!!!

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Honestly put emotion aside.The UAW is in business to collect dues from members and curry favoritism from powerful international corporations.Go to California and all you see are foreign cars.Americans hate each other.It is called divide and conquer.Meantime Israel {I said Israel not Jews}has the Upper Hand on all the corrupt USA politicians.Somebody wake up McCain and tell him the USA lost the war in Vietnam.

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Why should Toyota workers want the UAW?Toyota workers already benefit from the UAW without having to exhibit any courage on their own part.The UAW kisses up to them and Toyota responds by treating them fairly.No union dues,a person can get ahead on his own,clean place to work,winning company,more status being non-union ,,why join the UAW?

 

 

Great point what does the UAW offer thats wroth the 60.00 a month that Toyita workers can't get themselves??

 

Now that International in the last 6-7 years gave away everything that made the UAW great, what does the UAW have to offer?

 

What kind of leverage does te UAW have with Toyota if they are cutting production on the US made vehicles?

 

We need new leadership with a real vision of the future.

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I dont want the toyota plants UAW NO WAY!!! That would make the buy american saying nill.

A Toyota UAW would make them on par with us and thus increase there sales!!

Go to any school parking lot the "union" working teachers buy more foreign cars then american cars.

we support them and they crap on us. anyone look at the charter school pay?? About 10-15K less then public union teachers and NO charter schools test scores srent better so dont give me that BS line.

Public school teachers are underpaid and charter school teachers are being robbed.

So we dont need a UAW at Toyota NO WAY!!!!

 

 

Do you realize the reason the BIG 3 workers have had thier wages reduced is a direct effect of the UAW losing the organizing drives all through the 1990's at Toyota and Mercedes etc.

 

If Organizing would have been able to do thier job then by bringing thier wages up.

They would have been able to protect ours.

Since they failed at thier jobs then,we are all suffering now. :censored:

 

Now, the very people who lost that war for us in the UAW and have been negotiating bad agreements for us in Ford and IPS for the last few years (Dana,Magna, Ford, etc.) are about to take over the union when Ron retires. :banghead:

Edited by TheEagle
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Chrysler and GM are the competition too! And Toyota is building factories in the U.S.! Unlike Ford who is sending everything to Mexico! We just need to get into these plants and get them to become union shops!

Chrysler has beenin mexico since the 70's. Before Ford.

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I dont want the toyota plants UAW NO WAY!!! That would make the buy american saying nill.

A Toyota UAW would make them on par with us and thus increase there sales!!

Go to any school parking lot the "union" working teachers buy more foreign cars then american cars.

we support them and they crap on us. anyone look at the charter school pay?? About 10-15K less then public union teachers and NO charter schools test scores srent better so dont give me that BS line.

Public school teachers are underpaid and charter school teachers are being robbed.

So we dont need a UAW at Toyota NO WAY!!!!

Ever been to a rally for the teachers??? Most of them drive foreign vehicles (toyota/honda/kia) anyway!!

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No full-time Toyota employee will be laid off because of downtime at their plant. Toyota believes that a trained workforce builds a better product, so they will be "in class" while the plants are idled.

 

Ford is doing all kinds of training at my plant.

Step one: Make a cardboard box

Step Two: Fill it up with your stuff.

Step Three: Leave.

 

It only takes 15 minutes but it's training you'll never forget. :shades:

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Honestly put emotion aside.The UAW is in business to collect dues from members and curry favoritism from powerful international corporations.Go to California and all you see are foreign cars.Americans hate each other.It is called divide and conquer.Meantime Israel {I said Israel not Jews}has the Upper Hand on all the corrupt USA politicians.Somebody wake up McCain and tell him the USA lost the war in Vietnam.
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The general public does not care if a auto is union made, only that it is U.S. made.

 

The transplants need to be organized to bring them down to our level. No more no less.

What do you mean "to bring them down to our level"? Are they above us? Is the uaw taking down the big three?

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The general public does not care if a auto is union made, only that it is U.S. made.

 

 

I doubt if they even care if it is USA made. The general public HATES union mainly because they aren't. They especially hate it when a UNION man gets over. I remember when one guy I worked with won a humongous lottery. Millions and millions of dollars. When it was all over the plant, the guy had 5 marriage proposals within ten minutes. Shoot, two of them were from women.

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