Toyota may be leading the market for hybrids, but that doesn’t mean it is oblivious to ongoing customer demand for large, fuel-inefficient vehicles as well.
Toyota is increasing the production capacity of its new San Antonio truck assembly plant by 50,000 units. The $50-million investment will raise overall capacity by one-third to 200,000 vehicles per year.
Toyota’s total investment in Toyota Motor Manufacturing, Texas (TMMTX) is now $850 million. The plant is scheduled to begin production of the Tundra full-size pick-up truck by the end of 2006.
Toyota officials noted that this capacity increase will allow the company to respond quickly to market conditions should demand for the popular Tundra continue to grow.
During the first half of 2005, Toyota sold 64,429 Tundras—an increase of 26.7% year-on-year. The Tundra averages slightly more than 17 mpg combined across its different models (V6 and V8, two- and four-wheel drive).