Economic Development Futures Journal

Tuesday, January 24, 2006

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Toyota to Up U.S. Production

Boy, this sounds a lot like the late 1970s and early 1980s. Just about the same thing happened in the auto industry during that period. History does repeat itself!

Just as Ford has announced the planned closure of 14 production facilities in North America and production cuts of 1.2m vehicles a year, Toyota has declared an increase in its US production plans.

It's a relatively small increase, but one which shows how the Japanese brand - now the world's second-largest carmaker, behind only GM and gaining fast - has stealthily stolen market share from America's domestic carmakers on their home turf.

Toyota is to expand the capacity of its plant in Baja, California, by 20,000 units to make up to 50,000 vehicles and 200,000 truck beds a year. The investment of $37m will bring additional job vacancies, though the plant currently only employs 800 people, mostly Mexicans from nearby Tijuana and Tecate, to make the Tacoma pick-up.

Toyota is also building a new plant for its Tundra pick-up in Texas, and a further plant to build SUVs in Canada. More here: www.thecarconnection.com

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