Toyota moving Camry production to Subaru's Indiana facility
Toyota has announced that it will move its best-selling Camry sedan assembly to Subaru's underutilized Lafayette, Indiana plant. The changeover will free up capacity at the company's main car factory in Kentucky to build a 'new tall station wagon.'
Of course, Toyota isn't going it alone... it'll have the faith and trust of $94 million in state and local government incentives Subaru acquired when the plant was announced in 1989.
According to the Indianapolis Star, the automaker is expected to announce that it will hire 1,000 workers at the plant as early as Monday.
[Source: United Press International]
Reader Comments (Page 1 of 2)
jimbo 9:17AM (3/12/2006)
It's nice to see our tax dollars at work again. Great job Indiana... Way to invest $94 million dollars of U.S. taypayer's money in Toyota R&D. They need it much more than we do. Thanks for helping put U.S. companies out of business. Your children and grandchildren will thank you for paying to have their country taken away from them.
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Corey W. 9:59AM (3/12/2006)
Wow!! What the hell was GM doing with it's partnership with Subaru?? Just engines!! Just seems like Toyota is making WAY MORE use of Subaru then GM did...
....... Well, hell... what isn't for sale in America??
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GM Lover 10:29AM (3/12/2006)
Yeah, the foreign car companies don't have to deal with our unions AND we give them money to boot. Sounds like we really protect/support the domestic manufacturers, huh? Toyota has more cash and profit than anyone right now...why do they need a subsidy? They just figured out a way to say 50% on engine block manufacturing (which we know won't be passed onto the consumer - can't say I blame them there, they are a business designed to make money), let them use some of their new found profit to pay for the move!
It's not like this is some charity/not for profit company...they are a sales organization and there are costs of doing busines...why are we helping them!?!?! What a joke...at least help our struggling American companies first!
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zverg 10:45AM (3/12/2006)
Though I think it is stupid that the state government gave Toyota money, I don't at all think it should be used to help struggling American car companies. They are struggling because they can't produce a product that isn't totally shitty. They are to blame and no one should feel bad for them. Decades of poor quality will do that to a company.
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CJ 11:17AM (3/12/2006)
Who know what exactly those $94MM incentives are, and over what term....but Toyota will be adding 1,000 workers to its local payroll, thats probably $50 - $80MM per year. Well worth it for Indiana.
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Rastus (aka Ratsass) 11:27AM (3/12/2006)
When my GM car goes bankrupt along with Delphi and possibly it's mother company, I'm either going to buy an Alabama-made Hyundai Sonata or an Indiana-made Camry.
It'll happen within the year.
It will be patriotic (just think of all the American jobs being created by our fellow countrymen...Hyundai and Toyota!). These two companies have demonstrated more work-ethic, sound business management, care for their local communities and employees (by again, making SOUND business decisions designed to keep them employees).
GM will NEVER, I repeat Never, receive another dime from me, not from a new car purchase, nor from an oil-change. Hell, I wouldn't trust a GM mechanic to change my wiper blades. Anyone who associates themselves with a morally and financially bankrupt company such as GM ought to start looking out for their family better...and look to Toyota and Hyundai for a career.
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Jim 11:38AM (3/12/2006)
Any word on the "new tall station wagon" that will be built in the KY plant? As a fan of wagons, I'm curious what it will be.
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Rastus 11:51AM (3/12/2006)
http://www.detnews.com/apps/pbcs.dll/article?AID=/20060301/AUTO01/603010331/1148
What does THIS tell you?!?!
Money can't buy me love, is that it?
In Toyota We Trust!!!
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5Against1 11:56AM (3/12/2006)
The 'new tall station wagon' is probably the '08 Scion xB.
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Brian 12:13PM (3/12/2006)
Corey, the last thing GM needed was additional production capacity.
GM has way too much capactity as it is, Toyota doesn't have enough. It really doesn't take much to see why Toyota is able to take advantage of Suburu than GM, right?
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Peter G 12:40PM (3/12/2006)
This is a smart and safe move for Indiana and its citizens. An investment in Toyota is many, many times more logical than an investment in GM or Ford. Why throw your money away to support a sinking ship?
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donald douglas 1:10PM (3/12/2006)
If toyota wanted some more "do good free publicity", it would have asked GM to hire 1000 k workers that gm or even ford recently let go ! hey they have the experience and the desire to work on a line and build cars ! But no toyota will hire off the street then demand that indiana pays for there training !
I also get very pissed that these new korean companys wanna build new plants here, hey why not buy a plant that just closed ! all the municipalitys and infrastructure are there, electric, gas, water,highways, laid off employees and such.
Seems like these communitys that lost a plant would love to have that tax base back and local economy would love to have there employee spending back like groceries and such. just does not make sense ! if I where a company id go after the wixom plant, excellent location, right on the highway, great local schools tons of infrastructure already in place, but no they will go build in the middle of mississippi or alabama where nothing exists at all !
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AR 1:47PM (3/12/2006)
#1 and #3>>>>Wah, wah, wah. You idiots should be kissing Toyota's ass right now because they are the ones generating jobs, not GM and not Ford. I say Toyota and the Japanese ought to shift all North American production to Canada and Mexico. After all, why create jobs in America if Americans don't appreciate it?
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GM Lover 2:15PM (3/12/2006)
Hey Rastus, if I remember correctly, Toyota has some of the worst quality ratings when it comes to sales experience and dealership service...seems like they really take care of their customers! From my experience in Toyota and Honda dealerships, they act you should be grateful they are willing to sell you a car! As far as the GM dealer I use, they come and pick my car up for service and leave me a loaner car and they charge a fair and competitive price to boot. Sounds like you have a shitty dealership, they exist no matter what the brand (our local BMW/Porsche/Mercedes/VW dealer is the absolute worst dealer in town...and even the factory customer service reps will admit it!)
I am not saying Toyota shouldn't create jobs here, and yes that's always a good thing for the economy to have more jobs. However, lets not pretend that they are doing this out of goodwill for our country or citizens. They are doing it because it's a smart business move...they can build cars cheaper here vs. importing them from Japan and they need the capacity (plus they are apparently getting paid to do so , so extra bonus!). My argument is they are a very profitable business...they need more capacity apparently...are you telling me they wouldn't expand in the US if they weren't given a subsidy? I think not! How about they just finance their own expansion? I was also not saying they should give money to GM instead, but rather I could UNDERSTAND giving money to GM since they are an American company...why should we give money to support a foreign company?
I think it's going to be interesting to watch Toyota follow in GM's footsteps in the coming years, especially if GM disappears (which I seriously doubt will happen). Already we have seen Toyota's quality slipping as they've grown, including a massive increase in recalls. I've always said, even if GM and Toyota were equal in quality (failure rate), due to GM selling more vehicles you are going to hear about more problems...it's inevitable. Also, Toyotas and Hondas have held there value well due to supply and demand...as they increase production, there are more cars sitting on the used car lots and in the classifieds, making it much harder to keep prices inflated. Lastly, everyone complains about GM's high percentage of fleet sales. Lets say GM and Ford go away...the rental agencies still need cars...you honestly think Toyota/Honda/et. all won't want to sell them cars? Already you are seeing a lot more foreign cars in rental fleets. Seems like it used to only be Ford/GM/Chrysler, but the last few years when I have rented cars I am seeing equal numbers of Toyotas, Nissans, and Hyundai/Kias. The double standard rears its ugly head again...if GM does it it's the devil, but if Toyota does it, it's the best thing since sliced bread.
Where did Patriotism go in this country? Not just in the automotive industry, but everywhere? Remember when Wal-Mart used to use Made in America in it's marketing campaigns? Can't use it anymore since most of their stuff comes from China and Korea... I hope the USA still exists in 60 years for my grandchildren!
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starlightmica 3:04PM (3/12/2006)
Tall wagon? perhaps the next Toyota Highlander? or the FT-SX?
http://www.toyota.com/vehicles/future/ftsx.html
GM Lover - global economy, we're all looking out for our own @$$es. Much of the US won't be recognizable 60 years from now as it was 60 years ago but a good amount will remain the same.
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pc 3:16PM (3/12/2006)
Hey GM LOVER
I actually like to buy American car but there is nothing attractive from these guys. GM and Ford deserve their demise and there is no one else to blame. I am a former auto insider and who had a chance to worked with GM- which was absolutely horrible experience. (my GM counterparts had no sense of urgency, ridicious vacation schedules - can't find anyone to work with, worst corp management ever) I am actually surprise that they are still around.
If you have any doubt on GM or Ford's future, ask yourself, How long Accords and Camrys have been ruling US roads, they still do not have a competitive product. Do you think fusion or G6 is the answer. new Hyundai Sonata is more attrative than Fusion and G6 combined.
You mentioned patriotism - where you find that in Corporate America? Walmart will eventually destroy much of US private manufacturing sectors (remember rubbermaid?)
Meanwhile, executives at GM and Fords (still makes lot more money than Toyota or Hyundai executives will ever dream of)are too busy taking care of themselves along with UAW. These vultures will milk these companies dried.
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jimbo 3:18PM (3/12/2006)
AR,
GM and Ford will be forced to lay off more workers in the next 2 years than Toyota employs in total. How many jobs has it created if the higher paying jobs are being lost in greater numbers than the lower paying ones replacing them? You obviously are not a rocket scientist.
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Brian W 3:31PM (3/12/2006)
"If you have any doubt on GM or Ford's future, ask yourself, How long Accords and Camry's have been ruling US roads, they still do not have a competitive product. Do you think fusion or G6 is the answer. new Hyundai Sonata is more attractive than Fusion and G6 combined."
There's nothing wrong with the Fusion, just all the bad press about GM and Ford. Look what good press has done for Hyundai, they're soo overrated. In a few years Gm and Ford will come out with new models, by then everyone will be board with Camrys and Accords and want something with some style. You ack like Toyota has won, it's not over, the auto industry goes in cycles and in a few years their sales will start to drop.
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jimbo 3:35PM (3/12/2006)
Rastas,
And on top of all the selfishness and ignorance you can't even replace your own windshield wipers or change your oil. What good are you anyway? Take some advice...Leave the Autoblog and follow something a little more your speed. Maybe there is a Home Interior Blog out there for you.
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LuboDuboLoL 4:25PM (3/12/2006)
I dont know why but I've always liked Ford despite having a few of my Fords die out in the 90s. The main problem with Ford and GM is branding. At the moment, I would hate to see myself in a car with a blue oval or a GM. Maybe if Ford and GM stopped making cars under their badges but under newer names. Ford and GM can continue managing their companies but the names of the companies of the cars will be different.
Also, I really liked the Ford Fusion but it's high price jus put me off. I'll be getting the '06 Civic for $15K next year cuz it's cheaper.
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