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A tipster writes:
Long-time reader here. I’m sure you hate anonymous tips as much as the next internet pontificator, but I’m gonna throw one your way anyway. You noted a few days ago that some NUMMI capacity could potentially move to the Blue Springs, MS, plant. The word here in Tupelo is that equipment has been quietly moving into the facility at night for the last few days. Supposedly, they’re trying it out to see if they can make use of the place. NUMMI would make a logical source of that equipment if the rumor is true. I’m not much of a 2am spy run type of guy, so I’m afraid rumor is all I have to go on.
11 Comments on “Wild Ass Rumor of the Day: NUMMI Production to Tupelo?...”
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Tupelo is a lot cheaper than anyplace in CA. If I were King of Toyota that’s where I would bring the sheet metal stampers.
And what is the UAW, CA legislature, or anyone else going to do about it? Not a thing. MS will appreciate the move and award tax breaks. Some needy people will get jobs. Life goes on.
Some of the displaced workers might want to call the movers and get quotes on leaving the Golden State. The good news is housing is a lot cheaper in MS, you can buy a house with an AMEX card.
Moving in tooling in the middle of the night? Classy! I think it’s wishful thinking. Toyota says they are reducing capacity about 10 percent. I don’t see them tooling up a new plant. Mississippi, been there done that not going to do it again.
So, how much have the locals sunk into infrastructure etc. for that plant? The poorest state is now poorer, the Toyota Way??
Highly unlikely there’s any truth to this story.
Toyota’s already spending $500 million to bring the Highlander to Indiana. A few hundred million will be required to move Tacoma to Texas and cover NUMMI’s closing costs.
US SAAR figure needs to get over 13 million for Tupelo to make sense.
I don’t see it happening before 2012.
“For Tupelo to make sense”? Having those big buildings sitting unused doesn’t make much sense either. And I suspect that Toyo may have to repay plenty of millions in tax breaks and infrastructure costs to the State of MS if they don’t fire up the plant within a certain time period.
Toyota will use that shiny new Tupelo plant, and SOON. If the Matrix line is moved, how hard would it be to add similar Corollas? I guarantee that they made it a “flexible line”, so probably quite easily.
rodster – the only Matrix line is in Canada. NUMMI never built the Matrix… only the Corolla and Vibe. My understanding is that the Matrix and Corolla go down the same line at Canada. I would presume that the Vibe and Corolla went down the exact same line at NUMMI. I know that the Ohio Honda plant runs very different vehicles down the exact same line.
I don’t see the Mississippi plant opening up until 2012 or later. Canada will soak up a good portion of the Corolla volume lost at NUMMI (basically running all out) and TMC will start importing Corollas from Japan or another Corolla plant to make up the rest of the volume. Until the SAAR is back up, it doesn’t make sense to have 2 Corolla plants in the US. Now, it wouldn’t surprise me to see a flexible Prius and Corolla line open up at Mississippi in 2012.
Just announced on a local radio station this morning…..NUMMI Corolla production is to be moved to Cambridge, Ontario.
The “volume” for the Corolla is coming to Cambridge, Ontario as announced this morning here in Canada, this Plant is very well run and I am sure they will be able to do it right! Along with the Matrix and the Lexus 350
As Quentin pointed out, there is no Matrix line.
And it’s incorrect to say Corolla’s coming to Cambridge. Corolla IS in Cambridge since 1988.
Yes, Cambridge will have to pick-up some of the Corolla volume lost by NUMMI’s demise. Cambridge is already running overtime as a result of c4c. They will further increase production by decreasing the takt time in October(they’ve increased takt time about 1 year ago because of the slump in sales). That ain’t gonna be much of a volume increase though…maybe 10% or so.
And Toyota had always imported some Corolla’s from Japan. About 10% of Corollas sold in US last month were imported from Takaoka.
That portion will simply go up to 40-50%.
The huge Takaoka plant, currently only running at 60%, would be more then happy to provide them.
Tacoma to San Antonio–done deal
Omoikane:
“And Toyota had always imported some Corolla’s from Japan. About 10% of Corollas sold in US last month were imported from Takaoka.
That portion will simply go up to 40-50%.”
That’s a dirty little secret. Toyota likes to wrap themselves in the flag and talk about how they make cars here, but they still import a significant number from Japan, as does Honda and Nissan. I don’t think Toyota will keep plants in the US and Canada open and close plants in Japan if the auto biz gets even worse than it is now.
windswords,
that’s no secret- it’s out there in the press releases. It’s only seen as a “secret” by populist morons and UAW demagogues. And 10% it is not a significant number. It has always been there in good and bad times. When Cambridge and NUMMI were running full speed and people there were whining for having to work “excessive” overtime, Takaoka was helping filling out the dealer orders, the Japanese working their butts off without complaining. In bad times, it won’t be right to run NUMMI and Cambridge at 100% and Takaoka at 40%.
As for plants closing, Toyota already announced shutting down one of the two lines in Takaoka.
Please note it is not Toyota who closed the NUMMI plant.
GM decided to withdraw as a NUMMI shareholder.
Witnessing the OPEL circus, I could only imagine how the negotiations with the GM clowns would have been in case Toyota wanted to buy them out…