Auto News: Toyota Goes to Mexico
April 5th, 2006 by admin
Toyota plans to increase plants in North America
Toyota’s North American planning group is considering building another North American assembly plant. The planning group considered the increase in sales they have experience in the past few years, and they’re now projecting their increase in the American market through 2010. The group suggested that Mexico would be the best place to build a new production plant for exportation to the U.S.
Steve Sturm, vice president of North America planning for Toyota Motor Sales U.S.A. Inc., declined to offer details about Toyota’s projection of sales in the U.S.
In 2005, the company produced 1.56 million units in North America, 63 percent of its North American sales. Its goal is to produce in each region at least 60 percent of its sales. (See story at right.)
Plans suggested by the North American planning group must be approved by Toyota headquarters in Japan, he says.
Sturm says the planning group is exploring a broad expansion of powertrain production. "Our engine and drivetrain manufacturing needs to grow in proportion with new assembly plants," Sturm says.
Over the past decade, Toyota’s North American sales have grown by an average of 8 percent annually. If things continue at that rate, Toyota’s sales growth will outpace its local production growth.
Toyota will gain volume from its existing products becoming more popular and from new vehicles.
Consulting firm CSM Automotive forecasts Toyota will manufacture close to 2.1 million units in North America in 2010. Plants already under construction or previously announced will handle most of this increase.
Mike Jackson, director of North America vehicle forecasts for CSM, said Toyota might expand some existing factories, such as plants in San Antonio and Baja California, Mexico.
Plans suggested by the North American planning group must be approved by Toyota headquarters in Japan, he says.
Sturm says the planning group is exploring a broad expansion of powertrain production. "Our engine and drivetrain manufacturing needs to grow in proportion with new assembly plants," Sturm says.
Over the past decade, Toyota’s North American sales have grown by an average of 8 percent annually. If things continue at that rate, Toyota’s sales growth will outpace its local production growth.
Toyota will gain volume from its existing products becoming more popular and from new vehicles.
Consulting firm CSM Automotive forecasts Toyota will manufacture close to 2.1 million units in North America in 2010. Plants already under construction or previously announced will handle most of this increase.
Mike Jackson, director of North America vehicle forecasts for CSM, said Toyota might expand some existing factories, such as plants in San Antonio and Baja California, Mexico.
If Toyota does build a plant in Mexico, it would assemble the Yaris (a subcompact car they’re releasing to replace the Echo).
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