Is Toyota Tundra Production Leaving Indiana? Yes.
By: Mike Levine Posted: 04-03-08 07:10 PT
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Update #2: 07-10-08 08:30 PT

In a move that will cut up to a third of potential Toyota Tundra manufacturing capacity, Toyota has announced all Tundra production will be shifted from its Princeton, Ind., factory to be consolidated at its San Antonio truck plant. Production of the Toyota Highlander SUV will replace the Tundra in Princeton.

Previously, the Tundra was built in both Princeton and San Antonio, with the Princeton plant capable of building up to 100,000 full-size Tundras annually. The San Antonio facility can build up to 200,000 Tundras each year.

The fact that it’s consolidating all Tundra production in Texas appears to indicate Toyota doesn't believe it can sell more than 200,000 full-size trucks annually in the U.S. -- even after it introduces future models, like a diesel-powered version of the Tundra or rumored heavy-duty models.

Toyota sold just over 196,000 Tundras in the US last year. This year that number could drop to under 140,000 units.

Update #1: 04-03-08 09:24 PT

Toyota has issued a statement saying it's not currently planning to move Tundra production from Indiana.

Toyota Press Release

Toyota has no plans to move its operations from Gibson County as a newspaper headline reported Thursday morning.

A globally-circulated newspaper last month speculated on the product mix at Toyota's plants in Indiana and Texas where the Toyota Tundra is built. That speculation was driven by the current automotive market downturn, particularly among the full-size pickup truck and sport utility vehicle segments. That report was picked up by local media.

None of the speculation in earlier media reports is substantiated and certainly no decisions have been made. Toyota remains committed to its Gibson County operations and to the employment security of the veteran and skillful team members who build great Toyota trucks, sport utility vehicles and minivans.

Source: Toyota Motor Manufacturing, Indiana, Inc.

The Wall Street Journal says Toyota is considering moving all Tundra production from its manufacturing plant in Princeton, Indiana and consolidating it at its factory in San Antonio, Texas.

But according to the Evansville Courier & Press, Kelly Dillon, a Toyota spokeswoman at the Princeton plant, said she knows of no such plan.

In March, Toyota said slowing sales of its half-ton pickup were prompting it to reduce Tundra production.

The San Antonio facility can build up to 200,000 units a year, while the Princeton plant can produce 100,000 a year. Consolidating all Tundra production in Texas could mean that Toyota doesn't believe it can sell more than 200,000 full size trucks annually in the U.S. - even after it introduces future models, like a diesel powered version of the Tundra. Last year Toyota sold over 196,000 Tundras.

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