Toyota Planning to Expand North American Share from 10.4% to 15%
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| Toyota is planning a full 4-door version of its well made Tundra pickup. Currently its abbreviated rear seating area is accessible via two rear-hinged doors that are only operable if the front doors are open. It will be produced alongside the current model in Texas. (Photo: Trevor Hofmann, Canadian Auto Press) |
In what was a widely expected decision Japan's number 1 automaker, Toyota Motor Corp., stated on Wednesday it would build its 6th North American plant in San Antonio, Texas. Why Texas? Toyota wants to support its growing sales in the region.
The plant, that will be capable of producing up to 150,000 Tundra pickups per year by 2006, is projected to cost $800 million. It will employ approximately 2,000 workers.
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| Nissan's 4-door Titan, introduced last month at the Detroit auto show, will be the only alternative import in the full-size pickup truck arena. (Photo: Trevor Hofmann, Canadian Auto Press) |
Even before the San Antonia plant is finished another Toyota plant will open in Tijuana, Mexico, producing small pickups at the rate of 20,000 per annum. The investment at this much smaller facility is comparatively minor at $140 million.
The only other import player joining the full-size light pickup truck market is Japan's 2nd largest automaker Nissan Motor Co., who will be producing its all-new Titan pickup along with three additional models at its new $1.4 billion assembly plant in Canton, Miss., this spring.
Toyota plans to expand its 10.4% share of the North American market to 15% over the next decade, an ambitious but reasonable plan. After all, it has increased sales volumes in the U.S. and Canada for nine years in a row.