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Toyota Toyota Green Cars Today, Blue Skies Tomorrow - Discussions about Toyota and Toyota automobiles.

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Toyota said to plan U.S. production cut.

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Old 09-13-2006, 11:08 PM
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Toyota said to plan U.S. production cut.

Higher fuel prices, economic concerns to reduce pickup output at Texas plant; lower sales growth seen in '07.

Dow Jones - Sept. 13, 2006


Toyota Tundra (EPA 16/18 w/ the V8) - Production cuts announced.

HONG KONG - Toyota Motor Corp., Japan' s leading automaker, is set to lower its U.S. production target for some vehicle models because of higher fuel prices and concerns the economy could slow, according to a media report Wednesday.

Toyota (TM) is considering trimming production at its new pickup truck assembly plant in Texas, the Japanese newspaper Asahi Shimbun reported.

The plant, scheduled to open in November, has an annual capacity of 200,000 units, but Toyota is targeting to make 150,000 pickups in 2007, the report said.

Toyota will double its orders for passenger cars to 200,000 from Subaru of Indiana Automotive Inc., the U.S. production subsidiary of Fuji Heavy Industries Co., from October 2007, the report added.

Separately, a Toyota spokesman said the U.S. division did not expect 10% to 12% sales growth in 2007, a level consistent with growth rates in recent years, according to reports.

Although not formal target was given the spokesman said the automaker was expecting U.S. sales growth more along the lines of 3% to 5%, according to a Reuters report.

Toyota' s U.S. sales are reported to have risen 11% this year.

Toyota is on track to surpass General Motors (GM) as the world' s largest automaker by volume next year.
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Old 09-14-2006, 08:59 AM
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Re: Toyota said to plan U.S. production cut.

This is one of the reasons why the Japanese do so well...much more realistic about sales and demand expectations than the big three. Their stock value will rise when they exceed their sales targets because they set a low, conservative goal.
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Old 09-14-2006, 05:01 PM
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Re: Toyota said to plan U.S. production cut.

Hi Antrey:

___I hope you will verify the following but I read just a few weeks ago that Toyota has not had a losing quarter over a 50 or 60 year time span! That speaks volumes in and of itself, doesn’t it? This is one of the areas where the UAW and our trade laws screwed the domestics as they could not import there best stuff without tariff issues, and the work force was a fixed cost so building cars at a loss was less of a hit to the bottom line then cutting back and idling almost fully paid employees from my understanding. This is not a UAW fault in its entirety as Honda and Toyota do not really lay off their employees but cut back on production to meet demand and redesign products that people will purchase in larger quantities for the next generation. This is a management fault of the domestics … What does it all mean? The new work rules governing the UAW and its temporary employees will remove some of the UAW obstacles. Now they (the domestics) have to find something that will sell?

___Good Luck

___Wayne
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Old 09-14-2006, 09:14 PM
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Re: Toyota said to plan U.S. production cut.

Y'know... What happened to the light pickups of the 1990s? It seems to me that you used to be able to buy a modest Chevy S10 or a Ford Ranger in the $10k-$13k range, and these trucks had i4 or v6 engines and got mid-20s for gas mileage.

I would imagine that if Ford or GM revived a line of light-duty trucks, people would buy them.
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Old 09-14-2006, 09:36 PM
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Re: Toyota said to plan U.S. production cut.

Hi AshenGrey:

___If you have the time, read the following: Have you purchased a Ford lately?. After you get done with that bit of history, take a look in the latest Mileage Logs and what that same Ranger XLT offered me with SG-II attached the last two tanks. Its capability is almost scary when pushed to her limits with great FCD feedback via Liner-Logic’s SG-II. 65 mpg over 20 + mile segments can be obtained when the gloves have come completely off in fact

___Good Luck

___Wayne
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Old 09-14-2006, 09:46 PM
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Re: Toyota said to plan U.S. production cut.

Quote:
Originally Posted by xcel View Post
Hi AshenGrey:

___If you have the time, read the following: Have you purchased a Ford lately?. After you get done with that bit of history, take a look in the latest Mileage Logs and what that same Ranger XLT offered me with SG-II attached the last two tanks. Its capability is almost scary when pushed to her limits with great FCD feedback via Liner-Logic’s SG-II. 65 mpg over 20 + mile segments can be obtained when the gloves have come completely off in fact

___Good Luck

___Wayne
The Ford Ranger has been a Mazda B series truck for several generations, but I'm all for the Americans partnering with the Japanese in areas they are weak such as small 4 cylinder engined vehicles.
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Old 09-14-2006, 09:58 PM
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Re: Toyota said to plan U.S. production cut.

Quote:
Originally Posted by xcel View Post
Hi Antrey:

___I hope you will verify the following but I read just a few weeks ago that Toyota has not had a losing quarter over a 50 or 60 year time span! That speaks volumes in and of itself, doesn’t it? This is one of the areas where the UAW and our trade laws screwed the domestics as they could not import there best stuff without tariff issues, and the work force was a fixed cost so building cars at a loss was less of a hit to the bottom line then cutting back and idling almost fully paid employees from my understanding. This is not a UAW fault in its entirety as Honda and Toyota do not really lay off their employees but cut back on production to meet demand and redesign products that people will purchase in larger quantities for the next generation. This is a management fault of the domestics … What does it all mean? The new work rules governing the UAW and its temporary employees will remove some of the UAW obstacles. Now they (the domestics) have to find something that will sell?

___Good Luck

___Wayne
Yeah, I've read that as well. Toyota has basically never had a losing year since they started making cars. Honda, I believe, has a similar streak. It really is amazing to compare a Toyota or Honda dealership with one of the big three dealerships. At least in my area the big three dealerships always have what appears to be 10 times the stock of the Japanese dealerships. The more efficient Japanese production system allows them to quickly adjust for demand. One of the reasons you see more and more Japanese plants opening in the U.S. is that they understand the importance of being as close to the customer as possible. You minimize transportation costs, which is a much larger cost in making a car than employee wages, and are able to react to the customer much quicker. The most "American" car, i.e. the one with the most American made and designed content is the Honda Accord, not one of the big three models. Americans have always been great at innovation. We would see great things coming out of Detroit if any of the big three had the efficiency and huge overflowing coffers that Toyota and Honda currently have. Lets hope the current, painful UAW restructuring across the industry helps to turn things around. A more competitive American auto industry will push the Japanese to perform even better. I am currently working as an engineer for Delphi, GMs bankrupt, spun off parts supplier and my division (Saginaw Steering Systems) is about to be bought by another company. I've been in the misdt of UAW inspired reconstruction for about a year now.
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Old 09-14-2006, 10:02 PM
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Re: Toyota said to plan U.S. production cut.

Hi Antrey:

___Mazda was the key reason the 2.3 and follow up 2.0 are doing as well they are for Ford. Tough as nails w/ decent if not spectacular FE capability from a small truck/SUV w/ the Ranger (24/29 w/ a stick), Escape (24/29 w/ a stick), Escape HEV (36/31) and cars in the Focus (27/37 w/ a stick) and Fusion (24/32 w/ the Auto) in fact.

___Good Luck

___Wayne
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