Toyota to Expand Output Capacity in Canada

[Variance]

Toyota to Expand Output Capacity in Canada

TOKYO - Toyota Motor Corp., whose solid growth could soon put it ahead of General Motors as the world's largest automaker, said Wednesday it will increase output capacity at a new assembly plant it is building in Canada.

Annual production capacity at Toyota's planned factory in Woodstock, Ontario, will be raised to 150,000 units, from an initial target of 100,000 units, the company said in a statement. The plant, now under construction, is scheduled to come online in 2008.

Total investment in the Woodstock facility, Toyota's second plant in Canada, will now amount to about $950 million with a total employment of 2,000 people, the company said. The factory will make the RAV4 sport utility vehicle.

"The announced expansion is aimed at allowing a flexible response to future market demand in North America," Toyota said.

Completion of the plant will give the world's second-largest automaker an annual North American production capacity of 1.88 million units in 2008, the Toyota City-based company.

On Tuesday, Toyota reported a 34 percent rise in profit for the quarter ended Dec. 31 as sales jumped in North America and Asia. Toyota recorded a record high group net profit of 397.6 billion yen ($3.4 billion) during the period, on a 15 percent increase in sales to 5.33 trillion yen ($45.6 billion).

Toyota's growth comes at a time when U.S. automakers General Motors and Ford Motor Co. are struggling.

Toyota also said Tuesday it expects to sell 7.95 million vehicles for the fiscal year ending March 31, above the 7.4 million vehicles sold the previous year but 80,000 vehicles fewer than the 8.03 million vehicles projected in November. Toyota said sales growth in North America was unlikely to offset anticipated drops in Japan and the rest of Asia from the earlier forecast.

Toyota's annual projection for fiscal 2005 is still fewer than General Motors' yearly sales, but if trends continue, Toyota will overtake the Detroit-based automaker in the next few years, some analysts say. Toyota has already passed up Ford, based in Dearborn, Mich., as the world's second-biggest automaker.

General Motors sold 9.17 million vehicles worldwide in 2005, the most it has sold in 27 years. However, the automaker is suffering from declining U.S. market share at the hands of its Asian competitors. GM lost $8.6 billion last year amid high health, pension, labor and materials costs.

Link: http://news.yahoo.com/s/ap/20060208/ap_on_...wN5bnN1YmNhdA--

[Dragon]

thats reminds me. time to update my resume

[Guest Josh]

Ummmm......?

Funny how automotive journalists continue to leave out GM's production increases in their truck plants...and the capacity that will be quickly filling up in Wilmington & D-Ham in just two years.

[Hudson]

Ummmm......?

Funny how automotive journalists continue to leave out GM's production increases in their truck plants...and the capacity that will be quickly filling up in Wilmington & D-Ham in just two years.

Ummm...Wilmington won't be anywhere near capacity in the foreseeable future. Same with Hamtramck. Could be why they were left out of the story. GM has and will have (for the current planning window) excess capacity. Toyota, on the other hand, is moving into SIA, expanding production in California, Mexico, and Ontario (beyond what you've already read).

[Guest Josh]

Wilmington & D-Ham are not too far behind too (beyond what people have already read...)

I figure in aaaaabout 9 months is when GM will pave the way or their future RWD vehicles and what will be FWD through 2010...now where's that damn AH-HA wink?