Toyota's plans to scale back on truck production
Not immune to the effects of soaring gas prices, Toyota Motor Corp., like its Detroit cousins, has announced plans to suspend production of its full-size pickup Tundra and its truck-based SUV Sequoia. Toyota plans to halt production starting August 8th. As gas prices continue to escalate, the demand for trucks and truck-based SUVs has decreased. Sales of the vehicles are down and inventory isn't moving. Toyota has the capacity to build 400,000 trucks but forecasts indicate only 150,000 in actual sales. Their trucks are sitting on lots for 64 days before they sell. These stats are almost unheard of for Toyota according to analysts at J.D. Power and Associates. The cutbacks in production will affect more than 10% of Toyota's 43,000 employees. Toyota is now faced with the challenge of focusing its manufacturing operations on its best sellers in the current market conditions. A new plant is under construction in Blue Springs, Missouri where Toyota will build hybrid Priuses, and production of hybrid Highlanders will move to Indiana. The decrease in demand for more gas intensive vehicles is causing productions shifts for American automakers and changing the face of the auto industry.
2 comments:
Driving through town it is easy to see that people are having to get rid of their big trucks for little cars due to better gas mileage. Almost every car lot has an abundance of large trucks lining the lot. I also have a feeling that they will continue to stay there unless needed to haul heavy equipment of something. Which is why the hybrid is becoming a better option for people who do most of there driving in town. Although the hybrids some like a good deal I am not so sure that the extra cost of the car would shield some of the pay for high gas prices. In the short run unless gas goes alot higher the car would not be a benefit but in the long run it definitely would be assuming the car does not need any maintenance done which I hear is very expensive .
I say it is hight time that Toyota came around to this decision. I was reading the Columbus Dispatch today and read the front page story about people who are going around starting things called hypermiler clubs. These are clubs that teach people how to drive more effectively. The end result? People obtaining 100+miles to the gallon in city. The record? 118 Miles to the gallon. The only thing is that these numbers only happen so far in the Priuses. And the ways for achieving these numbers insn;t anything drastic. One only has to keep tires always blown up as much as they can go, going 55 miles an hour on freeway, and turning the car off at intersections where you think you may be idling for more than 5 seconds. If you are still interested look it up
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