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Car Forum / Toyota / Toyota Cars / February 2007Toyota will build Highlander in Miss. plant -- and maybe more
Toyota will build Highlander in Miss. plant -- and maybe more Lindsay Chappell | Automotive News / February 27, 2007 - 1:00 am / UPDATED: 2/27/2007 1:20 P.M. Toyota Motor Corp. will build a $1.3 billion SUV plant near Tupelo, Miss., about 100 miles southeast of Memphis, the automaker said today. But evidence suggests the company is already planning to expand the plant. At a Tupelo press conference this morning, Toyota officials said they plan to hire about 2,000 workers to produce 150,000 Highlanders a year by 2010. A source with the project said Toyota is planning a second phase that would yield a crossover that does not now exist in Toyota's product lineup. Toyota officials declined to discuss longer-term plans for the project. But at the press conference this morning, Mississippi Gov. Haley Barbour let it slip that the plant's employment will grow to 4,000. The 1,700-acre site is in a small community named Blue Springs. Toyota has been taking public heat in the United States as its sales of imported vehicles rise. Imported vehicles account for about 46 percent of Toyota's U.S. sales, despite a long-standing goal of building two-thirds of its sales volume in local factories. Toyota's U.S. sales rose more than 12 percent last year, even as Ford Motor Co., General Motors and the Chrysler group struggled with financial setbacks and plant layoffs. Jim Press, president of Toyota Motor North America Inc., said the new Mississippi plant is not designed to defuse the criticism. "We're not doing this as a reaction to anything," Press said. "Our commitment is to continue to build cars where we sell them." Toyota also is preparing to open a RAV4 factory in Woodstock, Ontario, and to start a new assembly line inside Subaru of Indiana Automotive Inc. in Lafayette, Ind., that will boost U.S. Camry production this year. Toyota will not build engines at the Mississippi plant. The site is near Highway 72, which runs through northern Mississippi into northern Alabama to link the future plant to Toyota's expanding engine factory in Huntsville, Ala. Blue Springs is an unusual site for a Toyota factory. Other North American plants have been built a short drive from mid-sized cities, such as Lexington, Ky., and Evansville, Ind. Tupelo's population of 34,000 does not offer Toyota the same-sized work force that other sites under consideration did, such as Chattanooga, Tenn. But Tupelo has been a U.S. center for upholstered-furniture manufacturing for decades. And a recent shift to Chinese production of furniture has left large numbers of skilled furniture workers unemployed. Toyota officials said today that they hope to tap into that pool of workers to staff the new plant. >Toyota will build Highlander in Miss. plant -- and maybe more > [quoted text clipped - 6 lines] >But evidence suggests the company is already planning to expand the >plant. As an aside. Mississippi is run by a Republican.... http://www.governorbarbour.com/  SignatureScott in Florida It amazes me all of the crap Toyota gets about where its cars are made. The NASCAR Camrys are made in the US (Kentucky) while the Ford Fusion is made in Mexico. Wife's Avalon is made in Kentucky but my Highlander was made in Japan. Quality is great in both, as it was in the two previous Avalons we had. I wonder how John, Teddy or Billary would react if this same plant was built "up there"? I can't say that can I? Announcement states 2000 workers for 150,000 (or 200,000) - I wonder how many workers in the "Big 3" plants would be needed? How would quality fair? By the way, it is snowing here (lightly) today in Redding at 500' elev in Northern Sacramento Valley - go figure. Ron in Ca > Toyota will build Highlander in Miss. plant -- and maybe more > [quoted text clipped - 62 lines] > Toyota officials said today that they hope to tap into that pool of > workers to staff the new plant. I wonder why GM and Ford never built plants in Mississippi. -- >> Toyota will build Highlander in Miss. plant -- and maybe more >> [quoted text clipped - 64 lines] > >I wonder why GM and Ford never built plants in Mississippi. The unions that ruined them....would not allow it.... SignatureScott in Florida > >> Toyota will build Highlander in Miss. plant -- and maybe more > >> [quoted text clipped - 66 lines] > > The unions that ruined them....would not allow it.... That's my thought also. Too bad for GM and Ford. Lots of good people in Mississippi. -- > I wonder why GM and Ford never built plants in Mississippi. Actually GM has a facility in Mississippi. In fact GM has facilities in 32 states. Before they spun off the Delphi parts making operations, they had even more plants in more states. Ford has pretty much concentrated their manufacturing facilities in the upper mid-west (and Canada), with some facilities in Mexico. Visteon (the parts division spun off from Ford) has many southern locations, including two in Mississippi. So both Ford and GM built plants in Mississippi. Of course their plants were unionized and the workers had great pay and benefits. After Ford and GM were squeezed by low cost foreign producers they did their best to get rid of parts plants that had high labor costs, thus we ended up with Visteon and Delphi. Toyota pays substantially less that Ford and GM did at their plants. Their supplier pay even less. Isn't it wonderful watching high paying jobs being replaced by lower paying jobs with fewer benefits? We should all thank Toyota for helping to wreck the US economy. Oh What a Feeling! Moving Forward. This Changes Everything. Isn't Toyotathon over yet? Ed > Isn't it wonderful watching high paying jobs >being replaced by lower paying jobs with fewer benefits? Yes it is..... Those 'high paying' jobs were NOT skilled jobs. The unions forced GM and Ford to pay high wages for LOW skilled jobs. SignatureScott in Florida >> Isn't it wonderful watching high paying jobs >>being replaced by lower paying jobs with fewer benefits? [quoted text clipped - 4 lines] > > The unions forced GM and Ford to pay high wages for LOW skilled jobs. So what is better for America, low skilled workers getting decent pay in Mississippi and spending it in Mississippi, or Toyota taking their profits back to Japan? If Toyota was using their lower labor costs to sell their cars for less, then maybe I would buy your arguement. However, Toyota actually charges more for less. So where is the money going? I have no idea what you do, but I have watched as industry after industry moves off shore. The way things are going, the only jobs left will be low skilled LOW WAGE jobs. Then who will buy the Toyotas? Ed > >> Isn't it wonderful watching high paying jobs > >>being replaced by lower paying jobs with fewer benefits? [quoted text clipped - 16 lines] > > Ed I don't like our jobs moving off shore either, but Toyota is building plants on US soil, that costs money and provides jobs not only in the plants but for the construction of the plants and taxes Toyota pays. Anybody know what a GM/Ford union line worker makes? I don't know but would like to know. Anybody know what a Toyota line worker makes per hour? -- >>> Isn't it wonderful watching high paying jobs >>>being replaced by lower paying jobs with fewer benefits? [quoted text clipped - 7 lines] >So what is better for America, low skilled workers getting decent pay in >Mississippi and spending it in Mississippi, That is exactly what the workers will do..... Spend their money in Mississippi........... >or Toyota taking their profits >back to Japan? If Toyota was using their lower labor costs to sell their >cars for less, then maybe I would buy your arguement. However, Toyota >actually charges more for less. So where is the money going? Into the economy of Mississippi.... >I have no idea what you do, but I have watched as industry after industry >moves off shore. The way things are going, the only jobs left will be low >skilled LOW WAGE jobs. Then who will buy the Toyotas? The American economy is the largest in the world. We are doing just fine. >Ed SignatureScott in Florida > > I wonder why GM and Ford never built plants in Mississippi. > [quoted text clipped - 16 lines] > > Ed Ok, I didn't know about the GM plant in Ms. Toyota is doing really well and providing jobs, benefits also? GM and Ford on the other hand are in trouble. Just curious, how much does a union line worker make per hour? -- I still remember ole Ross Perot when talking about the Giant Sucking Sound of all the jobs leaving. Course he was talking about NAFTA then. Hourly wage/benefit/time per vehicle comparison would be interesting to me too. Ron in CA >> > I wonder why GM and Ford never built plants in Mississippi. >> [quoted text clipped - 28 lines] > Ford on the other hand are in trouble. Just curious, how much does a > union line worker make per hour? > Ok, I didn't know about the GM plant in Ms. > > Toyota is doing really well and providing jobs, benefits also? GM and > Ford on the other hand are in trouble. Just curious, how much does a > union line worker make per hour? The point is, that Toytoa pays significantly less in wages and benefits than Ford or GM. There are far fewer dollars of "American" labor in a Toyota car than one from Ford or GM. If the US protected US companies the way the Japanese protected Toyota for 75 years, then you would most likely not be buying Toyotas. Instead you would be buying Fords, or GMs, or Chryslers. In that case most of the labor expense would be going to US workers and pumped directly back into the US economy. When you buy a Toyota, even a "US assembled" Toyota, a smaller percentage of the purchase price goes directly back into the US ecnomy, more is siphoned off to Japan. Maybe this is fine with you. It worries me. Here is an interesting tidbit - in the early 20th century, Ford had more than 50% of the Japanese car market. The Japanese Government stepped in and forced Ford to stop selling cars in Japan. Where do you suppose Toyota would be today if the Japanese governement had allowed foreign companies to wipe out Japanese competitors the way the US government is willing to allow foreign companies to wipe out US companies today? Ed > The point is, that Toytoa pays significantly less in wages and > benefits than Ford or GM. There are far fewer dollars of "American" > labor in a Toyota car than one from Ford or GM. Care to cite a source for this? >> The point is, that Toytoa pays significantly less in wages and >> benefits than Ford or GM. There are far fewer dollars of "American" >> labor in a Toyota car than one from Ford or GM. > > Care to cite a source for this? Please don't feed the trolls. >> Ok, I didn't know about the GM plant in Ms. >> [quoted text clipped - 7 lines] > companies the way the Japanese protected Toyota for 75 years, then you > would most likely not be buying Toyotas. Just how is the US protecting Toyota? Mississippi and about 1/2 the states in the union offered Toyota tax breaks. They would offer GM, Ford, Dell or Google tax breaks, too. The US gov't gave Chrysler guarentees on financing about 20 years ago. > Instead you would be buying > Fords, or GMs, or Chryslers. In that case most of the labor expense > would be going to US workers and pumped directly back into the US > economy. Actually, about 85% of a Toyota Sienna is from American labor. I would imagine a similar percentage for most US built Toyotas. Most car companies, including Ford, GM, Diamler Chyrsler, Honda and Toyota, try to have their car manufactured near where they are sold. Because the markets are different in different countries (e.g., US likes big, gas-guzzling vehicles, most other countries like smaller vehicles), they cut down on costs of delivery of parts and vehicles. In addition, they try to use local labor. Even computer companies like Google and Microsoft try to have a work force in major markets like Europe and India, as well as Washington state. Toyota now produces about 1,550,000 vehicles in the US. And that number keeps going up. Toyota also does a lot of development in the US, with its largest development office in Ann Arbor. This helps it make relevent cars. Ford and GM do the same thing. They are building cars in China and India as well as Eurpoe. > When you buy a Toyota, even a "US assembled" Toyota, a > smaller percentage of the purchase price goes directly back into the > US ecnomy, more is siphoned off to Japan. Maybe this is fine with you. > It worries me. All the big car companies are now multinational. GM, Ford, Diamler-Chyrsler, VW, Toyota and Honda all build cars in Europe and the Americas. Most of the cars they build in a market stays in that market. Toyota still builds a lot of cars in Japan, but most of the cars it builds outside of Japan. > Here is an interesting tidbit - in the early 20th century, Ford had > more than 50% of the Japanese car market. The Japanese Government [quoted text clipped - 3 lines] > government is willing to allow foreign companies to wipe out US > companies today? It works both ways. Europe is now more efficient because it has a unified economy. Workers with particular skills can cross national borders. It makes it easier to find qualified workers. Where would the US be? Our computers would cost more, because our hard drives and other components are built in Asia. In fact, my old Dell was assembly in Signapore. A lot of software development by international companies, like Microsoft and Google, occurs overseas in countries like India and Ireland. A lot of our oil comes from Venzuela and the Middle East. And our cars would not be as high quality or as cheap. When Lexus came on the market, they took a lot of market share from Cadilac, Lincoln and Mercedes. When I was a kid, kids wanted to own a Cadilac or Lincoln when they grew up and became successful. Now, they want to own a Lexus. Cadilac, Lincoln and Mercedes had to come down in price and go up in quality to compete. We live in a global economy. It is not that Toyota makes a good car that is the problem with the US auto makers. The problem is that the US automakers had a lot of production problems, like union rules and old-fashioned and inefficient ways of building cars. Toyota and Honda are often able to design and produce a new model a lot faster than the big 3. Toyota knows how to build cars more cheaply than the big 3. It is not Toyota's fault that the big 3 didn't do what they need to do to keep up. In addition, the big-3 were saddled with legacy costs, like big pensions and retiree health care costs that Toyota and Honda don't have. Toyota and Honda pay for their retirement plans up front by using 401k's, just like IBM does now for new employees. And they don't pay ever increasing health costs for retirees, either. And if the US were isolated economically, not only would companies like Sun Microsystems, Google and Microsoft not have any international sales, but the big 3 would not have operations overseas, either. The bottom line is that we now live in a global economy. Competition is now part of that economy. Just like big grocery stores took over for less-efficient family run corner groceries, big banks buy out small banks, Google buys startups like YouTube, our domestic automakers either have to produce good cars at affordable products, or they won't be in business much longer. Why should I buy a more expensive American car when the American car maker didn't earn my dollars as well as a Japanese car maker? Jeff > Ed Ed, you have it all backwards. Why should Toyota pay more than what people are willing to work for in Mississippi? That would be doing a disservice to its shareholders, not to mention the fact that its cars would cost more and they would sell fewer of them. > > I wonder why GM and Ford never built plants in Mississippi. > [quoted text clipped - 16 lines] > > Ed Former furniture worker? Perhaps Toyota will finally get an interior that hold up for a change, LOL mike "Ed White" <ce.white3@gmail.com> wrote in message > Tupelo's population of 34,000 does not offer Toyota the same-sized > work force that other sites under consideration did, such as [quoted text clipped - 7 lines] > Toyota officials said today that they hope to tap into that pool of > workers to staff the new plant. >Former furniture worker? Perhaps Toyota will finally get an interior that >hold up for a change, LOL > >mike The interior of the '92 Corolla Wagon can't be told from new... Is that holding up? >"Ed White" <ce.white3@gmail.com> wrote in message > [quoted text clipped - 9 lines] >> Toyota officials said today that they hope to tap into that pool of >> workers to staff the new plant. SignatureScott in Florida Maybe it's just that Toyota owners are cleaner and maintain their cars bettter on average On Feb 27, 8:46 pm, Scott in Florida <askifyouw...@mindspring.net> wrote: > On Tue, 27 Feb 2007 19:27:29 -0500, "Mike Hunter" > [quoted text clipped - 27 lines] > > - Show quoted text - |
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