Toyota moves on GM with plan for 100,000 vehicles at U.S. plant - 11/23/05

Toyota to Build 400,000 More Vehicles in North America by 2008
Transplants will make up for most of GM's 1 million unit Capacity Reduction

In a series of press releases, reported by the Detroit News, Toyota has indicated that it is planning to increase it's North American manufacturing capacity by 400,000 units.

The most recent announcement is that Toyota is planning on producing up to 100,000 units in the Lafayette, Indiana plant run by Subaru. GM just sold off it's stake in Subaru, and that stake was bought by Toyota. Obviously, Toyota it didn't take Toyota too long to find the knife to twist it into GM's soft underbelly. To add insult to injury, the Detroit News repeated earlier speculation that the Lafayette-built Toyotas will be hybrids.

Toyota also expects to bring on-line a new pickup plant in Arlington, Texas with a capacity of 200,000 units per year. Toyota also plans to build up to 100,000 Rav4s in Canada.

GM's recently announced production cuts are planned to reduce General Motor's manufacturing capacity by approximately one million unites. In terms of the over-all capacity glut of the industry, Toyota's additions negate 40% of that. Honda and Hyundai are bringing new capacity on line as well. To me, GM's strategy seems to be based on the assumption that its competitors are going to stand still to let it shrink its way to solvency. I just don't see that happening.


Toyota moves on GM with plan for 100,000 vehicles at U.S. plant - 11/23/05