Although truck and SUV sales rebounded slightly in August, both segments are still significantly below where they were just a year ago. Toyota has already announced that it will be delaying the opening of its new Highlander plant in Tupelo, Mississippi due to the weakening market, and it looks as though the RAV4 will suffer a similar fate.
Toyota is still slated to open its new RAV4 production plant in Woodstock, Ontario by the end of this year, but the Japanese automaker has decided not to add a planned second shift to the plant next spring. The addition of the second shift would have double production capacity to 150,000 units per year.
“With the weak condition of the overall automotive market in North America, we must continually re-evaluate the situation,” Ray Tanguay, president of Toyota Motor Manufacturing Canada, said. “RAV4 is well positioned in the SUV market and we will start a second shift as soon as conditions permit.”
Despite Tanguay’s optimism, it doesn’t sound like the plant’s second shift will be up and running anytime soon. RAV4 sales were down to 12,911 units in August, a 19 percent drop from August 2007, according to Automotive News.
09/08, 1:06 AM
posted by:
FairlightRacing
I wonder what Toyogurt’s plant utilization percentage is at now? I remember not too long ago it was around 100%. But with all their truck and SUVs plants running at a third of their capacity or not at all it can’t be good.
09/08, 10:25 AM
posted by:
lostJR
Seems to me if RAV4 sales are off much, people are responding to the form, rather than the fuel economy, which is not that bad. Might be time to finally bring some of the small wagons and vans they sell in the rest of the world.