Toyota goes way over budget in Texas

[regfootball]

Autoweek

wow, first huge incentives on the old tundra and now blowing money on this.

SAN ANTONIO -- Toyota Motor Corp.'s new Texas Tundra factory will cost at least $430 million more than planned because of rising construction costs and late upgrades in plant technology.

The San Antonio plant, targeted to cost $850 million, will end up at $1.28 billion, the company says. The bill is still being tabulated even though production began Nov. 1.

Costs were inflated by a series of unexpected issues and some changes in plans, says Gary Convis, executive vice president of Toyota Motor Engineering & Manufacturing North America Inc. in Erlanger, Ky. The U.S. subsidiary oversees Toyota's assembly plants.

At a press event here, Convis said Toyota decided to adopt advanced manufacturing technology at the plant after the project got under way in October 2003.

He and other Toyota executives declined to reveal the nature of the more expensive technology. But Convis said the San Antonio plant is now "our most technologically advanced."

The company shielded large areas of the factory from a tour of reporters and photographers this month to try to protect what managers called "proprietary technology" in the stamping and welding areas.

But Convis acknowledged that Toyota also had dealt with unexpected cost overruns on the factory project, especially as steel and concrete prices rose over the three-year construction.

He said Hurricane Katrina had also driven up project costs by inflating wages of building contractors in the Gulf of Mexico region. The devastating 2005 hurricane also drove up the cost of construction materials during the project's final year.

[JT64]

$430 million is 21,500 $20,000 cars.

Toyota sold 4,145,000 vehicles worldwide in 6 months.

In April 2006-September 2006, Toyota made $6.7 billion ($777.2 billion yen) net income worldwide.

http://www.toyota.com/about/news/corporate...cialreport.html

...

...

So, how often does a giant corporation need to build a new giant manufacturing plant?

What's the point of $6.7 billion if you don't reinvest it on the business and donate it to charity?

Money comes, money needs to go. Hoarding money throws the world into a financial depression. It is spending that drives the economy.

$430 million meant $430 million was paid to workers across the world to build this giant manufacturing plant.

Oh dear, how long will it take Toyota to make the $430 million back? Oh, less than a month.

But still keep in mind car companies aren't greedy, Toyota's profit margin is only 6.77%. The corporation made $6.7 billion after spending $92.6 billion dollars.

Edited December 2, 2006 by JT64

[Mr.Krinkle]

$430 million is 21,500 $20,000 cars.

Toyota sold 4,145,000 vehicles worldwide in 6 months.

In April 2006-September 2006, Toyota made $6.7 billion ($777.2 billion yen) net income worldwide.

http://www.toyota.com/about/news/corporate...cialreport.html

...

...

So, how often does a giant corporation need to build a new giant manufacturing plant?

What's the point of $6.7 billion if you don't reinvest it on the business and donate it to charity? 

Money comes, money needs to go.  Hoarding money throws the world into a financial depression.  It is spending that drives the economy.

$430 million meant $430 million was paid to workers across the world to build this giant manufacturing plant.

Oh dear, how long will it take Toyota to make the $430 million back?  Oh, 1 month.

223036[/snapback]

I dont know what youre getting at? Its pretty clear toyota makes money hand over fist but what does that do for us?

If they make 7 Billion and reinsert 15% of that so what? Thats peanuts. Im not sure hwere your are going with this?

Wake up people.

[JT64]

...I'm not going anywhere... I'm just spewing out facts.

Facts in the real world aren't arguments for or against something.

[Mr.Krinkle]

...I'm not going anywhere... I'm just spewing out facts.

Facts in the real world aren't arguments for or against something.

223041[/snapback]

Could have fooled me. Well, no not obviously...but c'mon youre the one spitting out all these numbers. Toyota is done for. Mark my words. Their free ride is over.

Done. No more. Gone. Thats it....No one is that stupid anymore. I hope they enjoyed it while it lasted.

There is nothing special about them.

Period.

Edited December 2, 2006 by Mr.Krinkle

[JT64]

While I'm in spewing mode, it was interesting to find that Toyota Motor Corporation is 579 companies.

http://www.toyota.co.jp/en/about_toyota/overview/index.html

Facts are fun.

Arguing on the internet... not so much.

It's and interesting reminder that car companies collaborate.

GM uses Toyota transmissions in the Saab 9-3, 9-5, Aveo, Equinox, and Torrent.

http://media.gm.com/us/powertrain/en/produ.../2007/07car.htm

GM also has a joint venture with Toyota, the New United Motor Manufacturing, Inc. factory in California, which builds the Tacoma, Corolla, and Vibe.

http://www.nummi.com/

GM's safety technologies are joint researched with Toyota.

http://www.gm.com/company/gmability/safety...ota_030206.html

Edited December 2, 2006 by JT64

[andy82471]

I dont know what youre getting at?  Its pretty clear toyota makes money hand over fist but what does that do for us?

If they make 7 Billion and reinsert 15% of that so what?  Thats peanuts.  Im not sure hwere your are going with this?

Wake up people.

223039[/snapback]

I think the point he is trying to make is that for a company like Toyota, 430 mil is equivalent to pennies and nickles we find under the couch.

[CARBIZ]

And isn't it interesting that the worst transmissions we have are in the Aveo and Equinox? That is a major reason the Aveo gets disappointing gas mileage. The Equinox in year one had various tranny problems, which have since been ironed out, but I had a good laugh at that one.

[balthazar]

$430 million is 21,500 $20,000 cars.

toyota does not make $20,000 profit on a $20,000 car. It will take more far more than 21,500 vehicles to make $430,000,000 back. At $1500 profit per vehicle (hypothetical), it would be 286,000 vehicles. Facts are fun.

Agreed, tho; the amount is not much in the grand scheme of things.

[Paolino]

They have money to burn right now. Now they have less money to burn. :AH-HA_wink:

[Mr.Krinkle]

Toyota spends money to make money just like any other company. I dont see the revelation. The point of this story was that they are behind budget, understandably no less. New plant, new product, new people. ...It does not make my day any brighter that they are .5 billion behind on this one. Nor does it make the sun shine on a rainy day when toyota makes a small fortune selling 2 passenger cars. The fan boys go both ways evidently

Nobody is arguing here. Someone is saying Toyota is losing money, again, understanably and someone else justifies it because they can afford it. I dont see the point.

Joint ventures are nothing new. There are alliances all over the place. Any idea what Honda or Toyota gains from entering into these partnerships?

Its not completely one sided. Toyota doesnt source their supplies out of the goodness of their hearts. Spitting out random fun facts for no reason is an outright lie.

They arent Gods gift to the auto world. I feel badly for anyone who thinks that they are. Facts are fun. Facts about Toyota spun in such a way, for no reason as stated by you

...I'm not going anywhere... I'm just spewing out facts....

...not so much

[siegen]

He and other Toyota executives declined to reveal the nature of the more expensive technology.

Hmm

I'm thinking giant lasers.

[EMan]

Hmm 

I'm thinking giant lasers.

223131[/snapback]

hmmmm.... a death ray? Toyota next step to take over the world.

[sciguy_0504]

Seems like a non-issue to me. Virtually every new construction project that was budgeted for years ago is now over budget no matter the location or industry because of construction costs. I'm sure Toyota planned for it to be over budget as time went on.

[Dragon]

they've decided to upgrade the Woodstock plant thats under construction now. Its cost is up to $1.1 billion from $800 million