The Toyota Tundra is the most competent pickup Toyota has ever produced, but the two-year-old truck has been hit hard by the harsh reality of the US auto slump. Gas prices and a sluggish housing industry have conspired to put a wet blanket on the Tundra party, and the San Antonio plant will be closed from August 8 until mid-November to allow dealers to clear out Tundra inventory. When the Texas plant does come back online, a portion of its production could wind up overseas.
At the Management Briefing Seminars, Toyota Motor Manufacturing Kentucky Inc. President Steve St. Angelo said some Tundras and Sequoias could be produced in the US and shipped overseas. While markets like Europe and Asia aren't likely to turn to trucks and SUVs in large numbers, both the Tundra and Sequoia could be a welcomed addition in the Middle East, where cheap gas prices makes big vehicles more acceptable. While the overseas truck market isn't likely to produce huge demand for the Tundra and Sequoia, the currently untapped markets could help the San Antonio plant come closer to running at its peak efficiency.
Toyota posted a 10% sales decline for its bread-and-butter brand of over the month of June, with numbers that are even worse -- an 11.5% drop -- when the Scion and Lexus brands are added into the equation. In response to these very un-Toyota-like sales declines, the automaker is now revamping its vehicle production in the States. Though it has already introduced measures to slow the production of full-size Tundra trucks and Sequoia SUVs, reports indicate the further cuts will be made at the San Antonio truck plant. The Indiana plant, which also produces Tundras, will see workers transferred to other lines where more popular vehicles are assembled. Even plants in Japan that export vehicles to the U.S. could be affected. Toyota is hardly used to seeing double-digit drops in sales in the U.S., so it will be interesting to see how the giant Japanese automaker responds in the months to come.
The full-size pickup truck woes continue to worsen, leaving even mighty Toyota little choice but to slow production of its Tundra model. In fact, Toyota's brand new plant in San Antonio that was built just for the Tundra will be shutting down a total of 14 days between now and October. Full-time workers at the plant will be able to use vacation days, take the time off unpaid or find something else at the plant to do while the assembly line is halted.
Unfortunately, temp-to-hire workers aren't so lucky. Two-hundred employees who were hoping to land full-time positions at the plant will be laid off this summer. Toyota spokesman Mike Goss says, "We have a very long-term view of that factory in Texas. We're trying not to overreact. We're trying not to shut it down." Whoa... back up. Shut it down? We hadn't heard any such thing until it was spoken by Goss. Sounds like things are just as bad for Toyotas with beds as they are for pickups from Detroit.
