Toyota to open truck plant in Texas

DETROIT November 13, 2006; Japan Today reported that Toyota Motor Corp will this week open its new truck plant in Texas. The Japanese auto giant will officially dedicate the Toyota Motor Manufacturing Texas plant outside San Antonio, Texas, on Friday.

The dedication of new plant also mark the start of production for the all-new full-size 2007 Tundra pickup truck. By the time the plant reaches full production in 2008, Toyota is expected to be close to surpassing GM as the world's top automaker.

Toyota is already the world's most profitable automaker, having increased in the July-September quarter to $3.44 billion on the heels of strong sales in both North American and Europe.

Once the plant is fully operational, Toyota and the on-site supplier companies will have a combined work force of more than 4,000 Texans in the heart of the pickup truck market in the United States, Toyota officials said.

The opening of the new Toyota plant also represents a huge challenge to American manufacturers such as General Motors and Ford Motor Co, all of which have depended on lucrative pickup truck market for profits.

Even with fuel prices rising and the softness in the housing market, which helps drive light truck sales, pickup trucks account better than one of every six light vehicles sold in the United States, noted David Terebessy of CSM Worldwide in Northville, Michigan.

Alan Baum, an analyst with the Planning Edge in Southfield, Michigan, also noted that Toyota has taken care with the new Tundra to focus more attention on the commercial side of the pickup truck business.

Toyota has tried to crack the U.S. pickup truck market before but up until now has always come up short, Baum said.

"I don't think you can count on Toyota flubbing it three times in a row," Baum added.

"They learn from their mistakes," noted Baum, who added the new plant is critical to Toyota's ability to offer more variations, which will help them compete more effectively against American rivals such as General Motors and Ford.

Brian Smith, Toyota Motor Sales corporate manager for truck operations, said bringing the new Tundra to market will comprise the biggest new-product launch in Toyota history.

When the 'O7 Tundra lineup reaches showrooms in early February, it will feature three cabin configurations, three engine choices, including and the capacity to tow five tons

Toyota expects to sell about 200,000 new Tundra pickup trucks next year. So far this year, Toyota has sold roughly 98,000 through the end of October, Smith said in a recent interview.

Toyota also plans to make a pitch for the commercial-type buyers who have long favored Ford and GM trucks, Smith said.