Toyota continues to add North American capacity

Toyota continues to add new North American capacity, with the recently announced Ontario assembly plant adding another 100,000 annual units of RAV4 production. This will be Toyota's third plant in five years, and even at that, their NA sales continue to increase faster than their ability to build vehicles here. In 2004, 62% of Toyota's vehicles that were sold in the US were built in NA; Nissan (76%) and Honda (79%) produce more of their vehicles domestically. Toyota wants to produce at least 60% of their US sales in NA, which may be difficult to do if sales continue to outstrip capacity increases. It's the sort of problem that the overcapacitized Big 3 would love to have. Additionally, Toyota has plans in place to increase the total domestic content of their vehicles, with trucks being built at their new San Antonio plant having approximately 90% of their components sourced in NA.