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Author: Blue Springs plant will open – eventually
11 months ago | 1883 views | 3 
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David Magee
Magee, who wrote “How Toyota Became No. 1,” said new leadership at Toyota has turned it into a “smaller company” that is being forced to look inward as it looks ahead to the future.
It’s how Toyota grew in the first place, and Magee said the automaker in many ways is returning to its roots.
So, Toyota is reviewing all of its options before deciding what to do with Blue Springs – as well as its other operations, Magee said.
“I think Blue Springs will open sooner or later,” he said. “But will it be anytime soon? No. I think it likely will be three or four years.”
Magee bases his comments on discussions he’s had with many industry insiders, including some from Toyota.
In December, Toyota said it would delay indefinitely the opening of the Blue Springs plant, which was scheduled to begin producing the Prius Hybrid late next year.
The automaker said slumping demand and an uncertain economy were the main reasons for the delay.
A less publicized factor was – and is – Toyota’s difficulty in getting the batteries for the Prius. “It has become a major issue,” Magee said.
In fact, last month, Toyota officials in Japan said battery shortages could stretch into next year.
While Toyota can make about 500,000 Prius annually, its battery supplier, Panasonic EV Energy, can’t produce enough of the nickel-metal hydride used in the Prius, plus other Toyota and Lexus hybrid models.
To help meet that demand, Panasonic is opening another plant next year that will add another 200,000 batteries.
Magee predicted that Toyota eventually will build the Prius in the U.S., whether it’s in Blue Springs or elsewhere.
“It’s significant that Toyota recently announced it was expanding the Prius name to other vehicles,” Magee said. “So Blue Springs may be building a Prius in the future after all. It may not be THE Prius, but it will be producing some vehicle. It’s just a matter of when.”
Contact Dennis Seid at (662) 678-1578 or dennis.seid@djournal.com.
Watch for a video interview of Magee here at NEMS360.com soon.
I really do hate to burst YOUR bubble, but you are not making much sense either.
First, my father has been with Toyota for nearly 30 years and is well known and respected among area dealers. He has had more opportunities than most to talk to Toyota officials when they come through. Oh, and I don't think anyone questions how smart companies like Toyota operate.
Secondly, I know what stage of completion the Blue Springs plant is in, you do not have to inform me. "Cranking up very soon" is not a definite timeline. A year to 18 months sounds about right. I do not think it will take more than three years.
Additionally, The demand for the Highlander is still very high. Why would Toyota consider the Highlander for Blue Springs if there was little or no demand for the vehicle?! Think about it. I do not see why Toyota would build them both here either, but we will see.
The new CEO for Toyota Motor Sales USA (TMS) is not Akio Toyoda. He is the CEO for Toyota Motor Company (TMC). Yoshimi Inaba is the CEO of TMS. I was wrong about when he took over duties, I will give you that. So next time I will get my facts straight if you do the same!
So, all in all I was just passing along a little tidbit of information. I never claimed that any of it was fact. I do however consider the source very credible. Oh, and I really do not care WHO looks at what I said.
I hate to burst your bubble, nothing that you say in your comment makes any sense at all.
First, I seriously doubt that anyone "in the know" about such strategic matters at a company like Toyota would be sharing that information with a sales manager at one of their dealerships. That's just not how smart companies like Toyota operate.
Secondly, it's technologically impossible for them to be "cranking up very soon". The installation and testing of the equipment and tools necessary to build vehicles in that plant hasn't even started and will take a year minimum.
Additionally, the "new CEO", Akio Toyoda, took over his new duties some time ago, the first week in August at the latest, but probably earlier than that. Regardless of when he "officially" took the reigns of the company, he's basically been performing those duties since the announcement of his appointment to the position months ago.
As for whether the Highlander and Prius would be built at the same factory, that makes little to no sense. Especially since the Blue Springs plant would be the first US plant to build the Prius, a car for which they have demand so high that they can't meet it. Why would they split resources between a vehicle for which they have such high demand and one that has very little demand that could be easily, and more logically built at another location?
So, none of what you write makes any sense at all when anyone with any amount of business savvy and even a modicum of understanding of Toyota's business looks at what you've said.
I think the 3-4 year timeline that Mr. Magee describes is a much more logical scenario for the Blue Springs plant opening.