Toyota begins Corolla production in Mississippi
20 November 2011
Toyota opened Toyota Motor Manufacturing, Mississippi (TMMMS), the company’s new $800-million plant outside of Tupelo that assembles the Corolla. TMMMS, Toyota’s fourteenth North American plant, has the annual capacity to produce 150,000 vehicles.
The Nikkei notes that the launch of the new factory means that Toyota is now supplying the North American market for the mainstay model almost entirely with locally made vehicles. Toyota will use the launch of local production of its mainstay Corolla passenger car to recapture lost market share in North America, the Nikkei suggested.
The automaker’s share of US new-car sales started the year at 15.3% but was down more than 5 percentage points at one point, mainly on an inventory shortage following the March 11 earthquake and tsunami. Disrupted parts supplies halted shipments from Japan of the Corolla, which accounts for 15% of its US sales. Inventory at the end of July was down roughly 40% from normal levels.
Local production of the Corolla will increase the automaker’s supply capacity. And at the same time, Toyota has started offering low-interest auto loans and special lease deals to put the Corolla in the spotlight at dealerships across the US.
Toyota’s Buffalo, W. Va., engine plant is supplying all engines for Corolla production at TMMMS. Cylinder heads and blocks for those engines are produced at both of Toyota’s Bodine Aluminum castings plants, located in Troy, Mo., and Jackson, Tenn.
When Toyota announced the Blue Springs project, it also announced a partnership with the CREATE Foundation and a donation of $50 million—$5 million a year for 10 years—toward an addition to the public school system in the Pontotoc, Union, and Lee counties.
Tupelo Mississippi - birthplace of the King, Elvis. He's smilin.
Posted by: Reel$$ | 20 November 2011 at 01:04 PM
This is rather strange. While the USA Big-3 are rapidly moving their manufacturing facilities to Asia, the Japan Big-3 are building manufacturing facilities in USA. Are we trading in 4 quarters for one dollar or half a dollar for 2 dollars or visa versa?
Not so sure that Honda, Nissan and Toyota are moving factories in the right place.
Posted by: HarveyD | 21 November 2011 at 09:09 AM
Harvey, there are plants being added to and built all over North America.
http://blog.ford.com/article_display.cfm?article_id=33683
http://timesfreepress.com/news/2011/sep/19/tennessee-reports-say-former-saturn-plant-spring-h/
http://www.caranddriver.com/news/new-gm-plant-to-build-2011-chevrolet-volt-cruze-engines-car-news
http://www.gm.ca/inm/gmcanada/english/about/Overview/operations_osh_car.htm
Posted by: Reel$$ | 21 November 2011 at 01:09 PM
Not to mention the Toyota/Tesla JV in Silicon Valley, where the world's most advanced EV - Model S is being built.
http://www.msnbc.msn.com/id/37358614/ns/business-us_business/t/tesla-toyota-give-jolt-nummi-plant/
AND another Tesla project in Canada:
http://wheels.blogs.nytimes.com/2011/08/05/tesla-powered-toyota-rav4-e-v-to-be-built-in-canada-not-california/
Posted by: Reel$$ | 21 November 2011 at 01:21 PM
Reel$$ - Exactly. As the cost of shipping fleets of vehicles increases, it makes more economic sense to build them where you're going to sell them.
The tipping point of shipping costs hasn't hit yet, but it's coming soon. This is another example of the Asian mindset thinking ahead, thinking of the next quarter century, as opposed to the American mindset of thinking of the next 3 months.
Posted by: sheckyvegas | 21 November 2011 at 03:42 PM
This is notso strange. The USA Big-3 are rapidly moving their manufacturing facilities away from high labor cost areas, the Japan Big-3 are building manufacturing facilities in union free areas of the USA.
Honda, Nissan and Toyota are probably getting big tax breaks to move factories into the right places.
GM gets billion$ and moves to China - labor laws typically make a move to Tupelo, alongside Honda, Nissan and Toyota, impractical for GM.
The "evil big industry" label properly applies only to American companies.
Don't expect them to "occupy" Tupelo any day soon.
Posted by: ToppaTom | 21 November 2011 at 08:58 PM
TT.....finally, it is wise to pay GM $$$B (public borrowed dollars) to move to China. Is that a way to convince China to buy more USA bonds? The truth may be that GM's home made products don't sell very well (or not at all) on the world market and factories have to be moved where the markets are and specially where products can be made at much lower cost?
That being said, why would Honda, Toyota, Nissan, Hyundai etc build more factories in USA. Wouldn't it be much more profitable to build new factories in China & India and ship cars to USA from there? Or, are they protecting themselves against future trade wars?
Posted by: HarveyD | 22 November 2011 at 07:35 AM
Not sure why Honda, Toyota, Nissan, Hyundai etc are building more factories in USA. Even with shipping and non-union labor, it "should be" much more profitable to build new factories and new cars in China.
Yes, maybe, they are they protecting themselves against future trade wars.
And also, maybe they have reduced the final ass'y cost in recent years and so completion, in the US, is bearable.
The NotsoBig-3 have lagged badly on factory upgrades and R&D to reduce ass'y costs - since they (used to?) make $2k to $4k less on each vehicle.
Toyota sells 8 million vehicles per year.
At $3k EXTRA per vehicle; Ummm, that's BIG bucks.
Posted by: ToppaTom | 22 November 2011 at 01:28 PM
People in the US also like to buy products "made at home." Even if they have a foreign label. Most people (in spite of globalist dreams) like their sovereign tribes. Is this so bad? Is respecting diversity, choice and free will bad?
Posted by: Reel$$ | 22 November 2011 at 05:24 PM
I'm still not convinced why high quality Asian car manufacturers would move factories from Asia to USA/Canada unless it is to avoid current or near future high tariffs.
My wife and I have tried made in Japan and made in USA/Canada Toyotas and have found wide differences in the overall quality. My next Camry Hybrid (2012/2013) will be another Made in Japan model unless somebody can prove that the locally made models are as good or better.
We have completely given up on Big-3 units over 20 years ago and have no intention of going back even if some of the Ford units look better. My wife refuses to drive a Ford (after buying two lemons)
Posted by: HarveyD | 23 November 2011 at 12:03 PM
My wife would never buy a car built in China - unless it was an actual toy.
Posted by: Reel$$ | 23 November 2011 at 03:43 PM