Toyota Production Resumes Following Texas Storm Damage

Toyota TMMTX 1

The Toyota Motors Manufacturing of Texas production plant that makes both the full-size Tundra and all-new Tacoma suffered considerable storm damage last week and had to stop production for a short period.

According to Reuters, the plant sustained the roof damage during a bad storm that rolled through the San Antonio area late May 18 and early May 19, at certain points generating winds as strong as 80 mph.

The storm left a hole in the roof that allowed significant amounts of water to pour onto the floor of the plant. Due to the possibility of electrical hazards, Toyota stopped production for a full day, starting the production line back up on May 20.

Toyota says the plant is running at full capacity at this point, and the company is making repairs to the roof and other water-damaged interior features.

The TMMTX plant is more than 2 million square feet in size and has the potential to produce more than 275,000 pickup trucks per year. Toyota recently announced an investment of $26 million to increase 2016 Tacoma production by 10,000 pickups due to the redesigned midsize pickup’s popularity; to do so the automaker hired 200 more employees.

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Comments

Now all Toyota needs is a full-size truck that sells.

@redblooded... LOL

Maybe they can start properly filling the automatic transmissions on the new Tacomas before being shipped to customers.

They sell trucks as fast as they are building them. 275k trucks a year isn't very much, my local dealer has zero Tacomas and 1-2 Tundras on the lot. They are the volume dealer in the state.

Toyota sells these trucks with no incentives on the Tacoma and $750/$500 (Crewmax/Double Cab) incentives on the Tundra.

Sounds like they are selling what they make with trucks sitting on dealers lots less than a month, which is a good business plan.

Not like Ford and GM that are still offering $13,000-16,000 off MSRP on remaining 2015 models that have been sitting on the dealers lots.

@ Jack,,, have you read monthly truck sales numbers... Ford at least not sitting around. In fact in the news recently Ford have to idle the F150 lines for few weeks to make some prod line mods to increase production output. So they're moving them as fast as they make then also...

Not like Ford and GM that are still offering $13,000-16,000 off MSRP on remaining 2015 models that have been sitting on the dealers lots.


Posted by: jack | May 26, 2016 3:46:12 PM


When a company like GM/FORD build trucks, they must build over 500K Trucks, Toyota does not build nor sell near that, so yeah, some 2015 model will sit in lots with incentives.

Toyota gets most of their revenue from cars and crossovers. Toyota's interest is to have a place in the truck market and not necessarily to become Number 1. Toyota will eventually grow their share of the truck market but it is hard to take over the top position when you have a higher brand loyalty among truck owners than any other type of vehicle. As long as Toyota is making a profit on their trucks it is less important for them to be in the top sales with the exception of the Tacoma which is the No. 1 selling midsize truck in the US.

Now all Toyota needs is a full-size truck that sells.
Posted by: redbloodedxy | May 26, 2016 3:11:10 PM

Redbloodedxy is right, maybe if they build less reliable vehicles, have more recalls, give huge incentives to get the trucks off the lot and give corporate fleet discounts in order to buy sales, then maybe they can sell as many as Ford does.

In the meantime, they will have to settle with making high profits on the smaller number of very reliable trucks that they sell...lol

http://www.reuters.com/article/us-ford-motor-recall-idUSKCN0YG1VL

Reliable? I bought into that and ended up with a Tundra that Toyota put $17K of warranty work into.

Toyota and Honda keep their defects hidden, so the public will not know. The frame on my Taco rusted in two, yes they did replace it, and a known issue but I never got a recall notice.

Kind of like a Supra I had, they replaced the cams twice in 60K miles. Another known issue but not recalled. I'll never buy another Japanese vehicle again.

@Jeff S,
Correct, it is overall market position, not what model sells more than the competition. As it stands, they are the part of the " Big 3" and slightly trailing Ford for No2.

I just hope Toyota doesn't use taxpayer dollars to fix the damage like gm(government motors) would do. Toyot is way more reliable then gm and ram. They are a close 2ND to MILITARY GRADE, MILITARY GRADE !!!

@Jeff S

how can you possibly know that a particular product in a company's lineup is profitable?

We are discussing a global company here: If their manufacturing division in this or that region makes a profit we can only really know that if they intentionally reveal that to investors in their quarterly reports--Am I wrong?

Toyota is building and selling trucks in North America to bug the big 3 as best I can tell. Ditto Nissan and Honda

@papa Jim
"How was 2015 for Toyota dealers?

A: It was a great year; it was a record year. We were so pleased that Camry finished as the No. 1 passenger car; Corolla was No. 2 and we had record light-truck sales for the year. Sales were up another 5 percent over 2014. We're the No.1 retail brand -- again. Dealers posted record profits. It was as good a year as we could have ever hoped for."

@Mr Ryan I had you guessed to be a sophisticated guy. Hmmm.

Toyota does not own dealerships. They make & sell product to them. Whether dealers make a profit is a separate topic.

Jeff S referenced Toyotas profitability. Not their dealers.

@papa jim--Toyota is not in the business to lose money. Their trucks make money and so do their cars but the greatest portion of their profits are not from trucks but from cars and crossovers. Toyota is actually in better shape than GM, Ford, or FCA in that if fuel prices rise and the economy worsens they are not over reliant on trucks. As for Nissan and Honda I really don't know but Toyota is much stronger than either one of them. The over dependency on trucks and large SUVs is not a good thing for the domestics in the long run because a downturn can make them all vulnerable and put them in a position where they will all need a Government bailout. FCA's is the most dependent on trucks. This is not unlike the late 70's where the Big 3 were heavily dependent on the sale of full size cars.

Also Toyota is not burdened with the higher labor cost of the UAW and is one of the most efficient producers. I doubt many Toyota dealers lose money, otherwise they would give up their franchises. I see a number of Tundras and Tacomas around N KY and Cincinnati and most of them are 4 wheel drive crew cabs. Sure Toyota does not sell as my trucks as Ford, GM, and Ram but they are moving enough of them to not lose money The profit margins on trucks are larger than most other types of vehicles. Toyota is less interested in bugging the domestic producers than getting a foothold in a highly lucrative market while still keeping their focus on their cars and crossovers.

@papa Jim
Announcement was from the company about their dealerships and them generally.

@Jeff S,
Toyota make their money on the overall operation, not just part of it. All sections for Toyota in the US were making a profit in 2015

Yes Robert I realize Toyota makes their profit from the overall operation, but they are not going to continually produce a product line that will lose money. I doubt Toyota is losing any money on their trucks. Maybe Toyota is making more profit on Camry and Corolla or maybe on the RAV4 but after almost 10 years on the Tundra platform and more on the Tacoma with a few changes Toyota should have at least more than paid for the design, tooling, and other related costs. Toyota does not change their products that often.

@Jeff S,
They are not losing any money on any segment.Pickup segment is hummus Ng along nicely

Humming along

Good job Toyota getting back to full production... no matter if the government controlled GM tried to use the HAARP system to weaken Toyota Tacoma production in the hopes to win the sales crown this year after they failed last year with an older Tacoma design.

While the Tundra is not the jewel in Toys crown like the F150, Silverado or Ram are to their company's it also doesn't have to be. Toyota is so much better managed and is so far ahead in market and production strategy regarding its entire line it doesn't even need to sell a single full size pickup to be profitable. Actually it would probably make more money if it stopped making full size trucks. And even losing on full size trucks Toyota still often makes more money than the Big 3-1 combined. EVERY Tundra on the road is a lost sale for the Big 3-1 and makes a statement. It might only be whispered right now but the Big 3 scoffed at the silly Japanese cars in the 70s and 80s too and the extremely stupid still scoff at them.

Toyota doesn't go broke because of CAFE, MPG, price of fuel, economic downturns, recessions, bad management, poor product quality, bad reputation... They (especially since the floor mat fiasco) handle their issues. Toyota doesn't have to offer big incentives, or cut big deals. They sell a hoard of quality small and mid sized cars that sell in both good and bad times (unlike full size trucks) at a profit (unlike American small and midsized cars) and it WORKS.

Until US automakers take the small and midsized car markets seriously they will always be slaves to the sales or lack of sales of their full size pickups.

I'll never buy a Tundra, but I've always found the extreme hate it gets curious. Yes, its a foreign manufacturer, and yes, its ugly as sin, and yes, its sales figures are a small fraction compared to the Big-3. However, 100% of those Tundras are made in Texas by Americans, in a billion dollar facility built by Americans.

It took me

Selling ~120,000 Tundras per year isn't too shabby IMO. Personally I hope they sell 300,000 eventually. Better a Texas Tundra than a Saltillo Ram.

Well said Clegane.

"Now all Toyota needs is a full-size truck that sells."
-- Posted by: redbloodedxy | May 26, 2016 3:11:10 PM

Interesting that you should say that, Redblooded. A close friend of my Father-in-Law who normally buys a brand-new truck every two years just traded a 2016 Silverado in on a net Tundra. Why? Because the 4.7 engine under the hood effectively became a marshmallow when he hooked up his boat to take it down to the river. He said it ran fine... as long as you didn't hook up a trailer to it. The Tundra however, gives him all the power he needs, no matter what's hooked up to the hitch.

Toyota haters, understand the big 3 have too much of their basket in large vehicles, so when the next fuel crisis comes, they will not be in a position to be profitable.

Toyota has a good mix all around. Not too much into trucks but enough to be a major and profitable player! Heck, Toyota can turn profits out of a Corolla!

Have you bothered to read into Toyota's profits? They typically make more in 1 quarter than the big 3 do all year!

Their is a reason why Toyota is the most respected automaker on the planet! They bring out reliable products hence global sales leader and they can turn mega-profits for shareholders!

And Toyota is also dominating the patents of new technology!

If patents are any indication, Toyota Motor Corp. is positioned to dominate the global market for fuel cell, electric and hybrid vehicles.

From 2011 through 2015, Toyota and its engineers were granted 9,807 patents for inventions related to alternative-powered vehicles, a new Thomson Reuters study concludes.

And the gap between the number of new Toyota patents and those at the industry's second-place company, Robert Bosch GmbH, is enormous.

Because the 4.7 engine under the hood effectively became a marshmallow when he hooked up his boat
Posted by: RoadWhale™ | May 27, 2016 7:17:37 PM

What 4.7L? Only a 4L engine in 2016 is a 4.3L from GM. Most Tundra's sold have a 5.7L .

Have you bothered to read into Toyota's profits? They typically make more in 1 quarter than the big 3 do all year!
Posted by: ooxxii | May 28, 2016 9:43:13 AM

Yeah if your still using boring 1980s interior parts, then yeah i'd hope so.

"What 4.7L? Only a 4L engine in 2016 is a 4.3L from GM. Most Tundra's sold have a 5.7L ."
-- Posted by: johnny doe | May 28, 2016 5:29:19 PM

Ok, so it was a 4.3. Or it might have been a 5.3. His point was that he had plenty of power in his Silverado UNTIL he hooked on a load. The Toyota Tundra just keeps on chugging under the same load.

Not like Ford and GM that are still offering $13,000-16,000 off MSRP on remaining 2015 models that have been sitting on the dealers lots.

If I could get sixteen large off a new 150 I would trade my 2013 f-150 tomorrow ................



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