REPORT: Toyota bankrolling $500 million into Indiana plant; no comment on NUMMI
The world's biggest automaker has confirmed that it is investing 44.9 billion yen (or about $467.2 million at current exchange rates) to upgrade its Indiana plant. Toyota Motor Corp. will reportedly spend the next three months retooling in order to build its Sequoia and Highlander SUVs on the same line (last year, the automaker canceled plans to manufacture the Highlander in a new plant slated for Mississippi).Toyota also has no comment about the recent rumors that it had entered talks with General Motors about buying out General Motors's share in the New United Motor Manufacturing Inc. (NUMMI) venture after the U.S. automaker announced last week that it was abandoning its 50 percent stake in the partnership. Toyota is currently negotiating with the United Auto Workers to adjust labor rates at the Fremont, California, operation. According to reports, the plant could shut down if those talks go sour.
[Source: Automotive News, subs. req'd]
Reader Comments (Page 1 of 1)
Wobbly_ears 11:11AM (7/07/2009)
Sequoia & Highlanders, eh?
Mark my words, five years down the line, Toyota would be in the same situation GM is in now.
Hubris has brought down giants throughout history. Everytime. Won't be different this time either.
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konatown 11:17AM (7/07/2009)
Highlanders are a marked improvement from Tundras. Baby steps.
DayShifter 11:25AM (7/07/2009)
I don't think it's going to happen, Toyota seems to be able to better adjust to market shifts For some reason, Ford and GM seemed oblivious to what was going on.
jrhmobile 12:08PM (7/07/2009)
Yeah, right DayShifter. Like the massive Toyota truck plant in San Antonio that's shut down right now after their multi-million dollar investment. If they were so prescient, why did they build a big plant for big trucks right before last year's financial debacle?
Here's a copy of the home game ... thanks for playing.
DayShifter 12:34PM (7/07/2009)
@jrhmobile
They shut down the plant to adjust inventory!! Again, response to the market...... Did you think they were just going to abandon their spanking NEW plant?!?!? The plan was to move ALL U.S. Tundra production to that plant. (from Indiana) It was also planned to make it a hub of production for the Highlander (from Mississippi)... And then move the Prius production to the Mississippi plant...... That called adapting to market conditions, take notes!!
And you might want to keep your eye on the scoreboard, before talking smack.
rooster 1:33PM (7/07/2009)
GM and Chrysler shut down plants to adjust inventory, too. Guess they are all adapting to market conditions.
Barry 1:39PM (7/07/2009)
yeah gotta be careful. modesty.
DayShifter 3:15PM (7/07/2009)
Didn't say they don't do it, just said Toyota timing wise, did it better.... I guess we're all just going to forget about inventory problems and moving of products some domestics had...huh??
Nightcrawler 11:20AM (7/07/2009)
I don't know a whole lot about the NUMMI plant, but I own a car that was built there and it's been very reliable. Based on that one data point, I'll go on record saying that Toyota should do their best to save that plant.
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DayShifter 12:38PM (7/07/2009)
I agree... I actually wished GM could have just made the VIBE into a Chevy model, to keep that platform going..... Kind of the only thing that Pontiac had that was different.
And this is just my humble opinion, I think Pontiac will return.....
Brent Worrell 2:11PM (7/07/2009)
@ nightcrawler
Anything to come out of the NUMMI plant is a toyota or a rebadged toyota. and more then likely they'll out last the true GM products in reliabilty. i agree that it should be saved. the corolla and the matrix come out of that plant so just shutting it down isnt exactly an option.
Judy Zik 2:24PM (7/07/2009)
@Brent. Acutally the Matrix is made in Cambridge, Ontario, Canada. That plant also produces Corolla's. All done in a modern plant with no Union. Just down the road it has a brand new sister plant building the RAV4 with capacity to spare. What do you think the odds are Toyota will hold onto the Nummi and it's Union workforce without GM to share the costs? I think the only chance Nummi has a future is if Toyota can talk the California government into some big incentives to build the Prius there. Having a "Made In California" Prius would really appeal to their target demographic.
Iwa 2:24PM (7/07/2009)
The Matrix doesn't come out of the NUMMI plant. The Matrix is assembled in the Cambridge, Ontario plant. If push comes to shove, ie the UAW won't accept lower wages, I'd expect the Corolla to be shifted to that plant.
ehisforadam 3:55PM (7/07/2009)
They also make the Lexus RX in Cambridge.
tgriffith 11:27AM (7/07/2009)
Toyota needs to let NUMMI go... Union contracts and big SUVs? Did they learn nothing from GM?
http://www.cargurus.com/blog/2009/07/01/nummi-is-no-more/
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DayShifter 12:42PM (7/07/2009)
Big SUV's?!?!? You do know what a Tacoma is right??
tgriffith 12:52PM (7/07/2009)
I know a Tacoma has grown to the size of a Suburban and that the Sequoia is monster SUV. Not to say I don't like them... I'd buy a Tacoma tomorrow. They're just BIG.
Kumar 1:07PM (7/07/2009)
The plant was originally set to make Tundras and Sequoias, and is being retooled, so not both Sequoias and Highlanders.
http://www.indystar.com/article/20090707/BUSINESS/907070363/1003/BUSINESS/Toyota+s++500M+move+refocuses+Indiana+plant
So the chance of two hybrids made here by Toyota, nice (IN native).
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Darvell 1:18PM (7/07/2009)
This is old news. We started doing this over a year ago. It's nearly complete now.
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ehisforadam 2:32PM (7/07/2009)
They said they were going to make Highlanders there when they decided not to make them at TMMMI, they just seem to be making a big deal about how much money they're spending. Hell, they're doing trail builds now. I'd be willing to bet some of that is going into retooling for the new Sienna too.
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