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Filed under: Plants/Manufacturing, Toyota

Toyota may slow U.S. factory expansion

Toyota's rise to the number one position in the global car industry hasn't been without its setbacks. The carmaker is starting to feel growing pains following its rapid expansion over the past few years, and the issue has got some if its top brass very concerned. The Detroit Free Press is reporting that execs are worried they've built too many factories in the U.S. and that they're considering slowing things down. The problem Toyota faces is if demand drops, it'll be stuck with a whole lot of idle assembly lines. GM, Ford and Chrysler feel your pain, man. A weakening yen also means that Toyota is better off building cars in Japan and shipping them over, and there's no forecast that things are set to change any time soon.

To put a damper on its rapid expansion in North America, Toyota's board is planning a strategic shift in policy that will likely result in no more factories being built for now. According to the Journal, Toyota has already scaled back plans for its $1.3 billion Mississippi assembly plant. If by any chance demand does outstrip supply, Toyota would likely fast-track the installation of additional assembly lines at existing plants rather than setting up new ones.

[Source: Detroit Free Press]

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