07/10/2008, 10:09 AM
Hatchback
Toyota to bring Prius production to U.S., halt Tundra assembly at one plant
Toyota this morning announced it will produce the next-generation Prius hybrid in the United States, in order to address “changes in consumer demand” and improve the “stability of its North American operations.” The automaker will also shift the production location of its Highlander mid-size SUV, and consolidate Tundra production to one plant, as previously rumored.
Many automakers have recently considered U.S. production to combat the effects of instability in the U.S. dollar. By producing cars in America, a manufacturer knows exactly what its costs will be relative to revenue generated in said market.
As rumored in April, production of the Tundra full-size pickup truck, currently built in Indiana and Texas, will be consolidated at the San Antonio plant in Spring 2009. The move follows the recent layoff of temporary Tundra workers and decreased output.
The Highlander, originally scheduled to be built in Mississippi, will now be manufactured at the Indiana plant, beginning in Fall 2009. The move should help reduce job losses and ensure the future of the plant in light of the Tundra suspension.
“The truck market continues to worsen, so unfortunately we must temporarily suspend production. But this good news about production mix demonstrates our long-term commitment to our North American operations and to our team members, supplier partners, and communities where our plants are located,” said Jim Wiseman, vice president/external affairs for Toyota Motor Engineering & Manufacturing North America (TEMA).
“By using this downturn as an opportunity to develop team members and improve our operations, we hope to emerge even stronger.”


07/10, 10:24 AM
posted by:
drchiem
Yes this is great news for us that mean more jobs…..
07/10, 10:29 AM
posted by:
xyunya
This completely anti-American to build cars in US. Only traitors and import humpers will drive them. Righteous patriots will drive Fords build in Mexico and Chevys form Korea!
07/10, 10:38 AM
posted by:
HemiRoadRunner
^^^ Yeah, when over 75% of the money goes BACK to japan! The only reason they bring manufacturing here is to, imagine this, SAVE ON COSTS! It cost them MORE to manufacture in japan, ship cars over here, wih insurance, import taxes etc etc. when they can just build them here and save on all that, especially when we are their biggest customer. And as far as I know, MOST of the big 3’s cars/trucks are still mostly built in the U.S or canada. Regardless, the majoroty of the money will ALWAYS go back to the companies home county. Who wants a toyota anyway?
07/10, 10:39 AM
posted by:
livelyjay
Just stop building the Tundra all together.
07/10, 10:48 AM
posted by:
xyunya
In order to bring money home you gotta make them first. For the past 3-4 years no moneys came to US, regardless of were cars are build. And what coming home means? Dividends of car companies shares go to share owners. 5% of GM owned by Kremlin (not exactly home is it?) and nobody really knows who owns remaining shares. There is no such thing as “money coming home”. But when did it stop degenerates from hate? They’ll find reason: if not a car you drive the socks you wear. Idiots don’t need a reason.
07/10, 10:59 AM
posted by:
drchiem
*HemiRoadRunner* If you are in the group of people who are losing job because of downhill economy or Federal budget cut. Then what would you do to keep your home and feed your family. I agree with the fact that if Toyota build it here then they will save money. It’s doesn’t matter, the fact is if it created job for American people that is all we care for. This country has become too gritty about letting all the big company to invested manufactor plans in other country. I hate it to see almost everything made from China; can I at least to get a choice weather buy produce made in USA.
07/10, 11:03 AM
posted by:
RaineMan
This means more jobs for blue-collar Americans… no matter which way you slice it. In the end Toyota’s profits go back to Japan… but you’ve still gotta pay the people who build the cars… and that money will be spent right here at home.
07/10, 11:07 AM
posted by:
xyunya
Everybody, you can keep profits here in US: Toyota shares are sold on NY stock exchange. BTW, if your 401K has some index funds or equity funds YOU are already own Toyota shares already and they make you money. Adversely you probably own Ford and GM shares and they loosing YOUR money.
07/10, 11:17 AM
posted by:
mayer_ray_nagin
Let’s say the profits “go back to Japan.” So what. Profits are maybe 5%. Most of the other 95% is staying here in the US economy.
Now take that Ford built in Mexico. Probably 70% of that money is sent out of country.
So which is better?
07/10, 11:17 AM
posted by:
Catiadesigner
Given the state of the US economy and the engineering sector in general, you chaps need to be scrambling for anything that will be bringing wages into this country. If you think that any of the profits (when they made any) of Ford Gm or Chrysler made any difference to the lives of the working majority you are living in cloud cuckoo land. They certainly didn’t get invested back into the product.
07/10, 11:38 AM
posted by:
global_lightning
Nationality is meaningless. Cars are designed in country X, built in country Y, sold in country Z, by a company based in country W. The old days where W = X = Y = Z are long, long gone.
07/10, 11:50 AM
posted by:
injunraiv
It is definately better that they assemble the cars here, but don’t lose sight of the bigger picture. Each and every dollar that leaves our shores is bad for our economy. So even though the car is assembles here, have a look at the domestic content on the sticker. My guess is it will be way below 50%. Compare that to the 80% or higher on that Mexican built Chevy, plus the PROFITS staying here (don’t confuse profits with dividends). BTW, I hate that the domestics are building things on foreign soil, but it seems to be the way of todays world…
07/10, 11:55 AM
posted by:
HoosierHero
I used to not take any notice of Hemi’s posts, but since he called me out one time I’ve been reading his. Hemi- wake up. The whole world (even us Americans) move operations to, imagine this, SAVE ON COSTS! Get your head out of the sand. Ever hear the word “outsourcing” ???? And since when did Canada become a part of the U.S.? It’s a foreign country just like Japan, Korea, and Mexico. Why not bitch about those awful Canadians taking American jobs too…
07/10, 12:01 PM
posted by:
johnnycanuck
****ing Canadians! Nothing more than Brits with better teeth and colder beer, which explains why not many of us carry bottle openers.
07/10, 12:05 PM
posted by:
tzu13
A company for whatever reason decides that they want to stimulate the US economy, and people STILL find a way to make it a bad thing.
…*sigh*
07/10, 1:02 PM
posted by:
injunraiv
tzu, don’t make it sound like they are doing us a favor. If it wasn’t a good business move, they wouldn’t be doing it.
07/10, 1:06 PM
posted by:
shaver
People not in mfg sector should shut up on this topic. These jobs are **** 90% of non-union mfg sector work is $14.00/hr or less. Averag journeymen Non-union Machinists made $16/hr in 1980, now it is 2008 they still make $16.00/hr. You do the math. This country is slowly turning into Mexico, w/systematic govt corruption, a shrinking increasingly marginalized middle-class and declining std of living for the masses.
07/10, 1:10 PM
posted by:
bolex
LOL johnnycannuck!!
07/10, 1:40 PM
posted by:
xyunya
Hey johnnycanuck, it’s not like you people invented refrigerator, it is colder in Canada then in UK. I’ll give you better teeth, but colder beer is NOT a national distinction
.
07/10, 1:42 PM
posted by:
xyunya
shaver, if those jobs migrate to Mexico, what journeyman & his family gonna eat? In Mexico the same job pays less then $5/hr. You do the math - per my calculations alternatives are dreadful.
07/10, 1:43 PM
posted by:
cookie4me
Toyota takes better care of their workers in a downturn than any of the unionized big-3. They can do this of course because instead of being bled dry by bargaining, they were able to manage their business properly. Of course, they are not obligated to protect their full time employees as there are many companies who would just shed them so this says a lot about Toyota as there are not many companies willing to stand up and do the right thing for employees.
07/10, 2:02 PM
posted by:
Buhbye
When Toyota starts losing money, they will start losing American employees. This will happen soon. They are making many mistakes.
07/10, 2:04 PM
posted by:
xyunya
Employee relationships in US automotive industry usually described in business books under chapter titled “What went wrong”.
07/10, 2:25 PM
posted by:
riktoven
$14.00/hr is pretty good for unskilled, uneducated labor. My wife makes $10/hr to sterilize surgical instruments, and that took a 1 year college certificate.
You can’t pay some ape off the street more money to mow lawns than you pay us dorks who design the cars and expect to come out ahead.
$35/hr to run a bolt gun is greedy to ask for, stupid to offer, and is the #1 reason why GM will be bankrupt in 5 years. The UAW cost me a really nice Delphi job.
The Unions, quite simply, priced themselves out of a job. The Japanese company I currently work for, would never ever consider putting a production facility in anything other than a “right to work” state (ie, no unions). That’s why there are so many new plants going up in the south.
07/10, 2:44 PM
posted by:
HemiRoadRunner
The unions didn’t price themselves out of jobs. GM’s archaic managent hasn’t come up with any good ideas or design’s since 1970. The big 3 can always hire workers elsewhere is the UAW asks for too much. Japs screw their workers, I was an engineer for a jap company making a whopping 45K a year to program PLC’s, design machinery, reinvent all the crap japan sent us over here to manufacture parts etc. They love the rural part of the south because people here are lucky to be working somewhere other than walmart or burger king and the taxes are dirt cheap, IF our government didn’t offer them 5-10 years of FREE taxes ti begin with to move there.
07/10, 2:51 PM
posted by:
inline6
So now Toyota’s going to get the nickel for the batteries in Canada, ship it to Europe to get refined, then ship it to China to get turned into foam, and now instead of the batteries getting shipped just to Japan to get put in these things, they’ll be shipped to China AND America!
Now that’s sustainability! Truly a world car, indeed. If by “world car”, you mean polluting 3 continents before the damn thing is even built.
07/10, 2:54 PM
posted by:
xyunya
inline, do you have better ideas how to build cars? Write a book. Alternative is to ride a horse buggy, like Amish do. Or bicycles, like Vietnamese (use to be Chinese, but since you are wearing everything made in China they want cars just like you and I).
07/10, 3:12 PM
posted by:
beatusmongous
Shaver, what’s even more saddening is that the $16.00/hour non-union worker does a better job than the $35/hour Union employee. For some reason, the higher chance of losing your job due to poor workmanship is a better motivator than feeling that the Union “has your back.”
07/10, 3:16 PM
posted by:
Kaizen
Actually, as far as domestic content in vehicle, if the vehicle was produced in the US, there is likelyhood that the majority of the content was also produced in North America because the suppliers build location on or near the plant.
07/10, 3:36 PM
posted by:
Random Jerk
Anyone who claims “the profits go back to Japan” does nothing but demonstrate that they ignorant to the realities of global economics and trade.
When you buy a Japanese car in the US, you pay with US dollars. What good are US dollars in Japan?
07/10, 4:00 PM
posted by:
inline6
xyunya,
You completely missed my point. There is a case to be made that the process the Pruis goes through to get its NiMH batteries has a greater negative impact on the environment than driving an H2 or LR3 instead. If Toyota wants to build these things in America, too, the additional shipping destinations will only add to the pollution.
07/10, 4:04 PM
posted by:
HemiRoadRunner
Random Jerk, are you kidding me? You act like you’re a global economy expert and know NOTHING about the exchange rate?
07/10, 4:24 PM
posted by:
frylock350
geez folks, the Prius’s point isn’t to be green (at least thats not why Toyota originally designed it) its to reduce fuel consumption. The goal is to use a little fuel as possible.
If you want green get a Cobalt XFE, its the most efficient vehicle built in the states. Or even better, get a Trek.
07/10, 4:32 PM
posted by:
Random Jerk
What about the exchange rate? Exchange rate doesn’t magically turn Dollars into Yen - they are EXCHANGED for each other. You can exchange all your Yen for dollars or all your Dollars for Yen - someone still has dollars and there is only one place to spend them - on American goods and services.
07/10, 4:48 PM
posted by:
HemiRoadRunner
well you asked what good U.S money was there dumbass. So now you admit they are EXCHANGED, why did you ask what good it was?
07/10, 4:55 PM
posted by:
mayer_ray_nagin
Hemi, I’d rather have my “profits go to Japan” than have my gas expenses “go to OPEC.”
07/10, 4:59 PM
posted by:
xyunya
inline, sorry, I did miss your point completely. I am not a fan of pollution or heart bleeding liberal demanding everyone wears hemp. And BTW, I don’t like the way Prius drives, but it is the best mileage car in US today and by default less polluting. Per Toyota model, however, they hate shipping stuff around, except ready made product. I imagine batteries will be purchased in US or Canada. Most likely the factory has to be build next to the Toyota assembly campus to minimize shipping cost and storage (there is no storage at assembly point per JITI model).
frylock350, being most fuel frugal makes car green. Pollution produced by burning fuel: the less you burn, less you pollute. Regardless of Toyota aims, they’ve happen to be green.
HomoRetardRectum, there is very little use for US dollars in Japan. In Japan folks are using yen. Random Jerk is absolutely correct. If you manage to get our of your swamp and see upright walking humans in Miami or Tampa you can easily purchase any currency of the world.
07/10, 5:49 PM
posted by:
Random Jerk
I admit they are exchanged? As if I denied it… My first comment here is written with the assumption of currency exchange - read it again.
Exchanging Dollars for Yen does not make the Dollars disappear. Whoever had the Yen before has the Dollars now. They can spend those Dollars for US goods and services or they can exchange those dollars for another currency.
Here is the key point that you continually fail to grasp:
Dollars that leave the country for imported goods have no where to go but come back to the US to be spent on American goods and services.
07/10, 6:27 PM
posted by:
t-ak-box
It’s good for America when more auto manufactures build in America. I’ll be glad when we start hearing GM starts manufacturing the Volt in America.