news
Toyota suffered its first-ever loss in 2008, and its sales in North America are down 38 percent from a year ago.
However, new leadership at the top in North America and Japan is in the process of deciding how best to turn things around and deal with the worst auto market in decades.
In Northeast Mississippi, a virtually complete plant structure lacking manufacturing equipment dominates the landscape south of the U.S. 78/Mississippi 9 interchange at Blue Springs, 11 miles northwest of Tupelo.
The company has spent about $300 million building the gleaming white shell of the structure on the PUL Alliance’s Wellspring Megasite. Pontotoc, Union and Lee counties formed the alliance, purchased the site and developed a plan to recruit an auto assembly plant or its manufacturing equivalent.
The plan worked, but that was before the worldwide recession dealt a severe blow to the American economy and auto sales in particular.
The high-mileage Prius hybrid, whose third generation recently was introduced, was scheduled for production at the Blue Springs plant as sales soared on the strength of rising gasoline prices. Then the recession hit, gasoline prices fell, and new car sales in the American market plunged for virtually all manufacturers, including Toyota.
In late 2008, production in Blue Springs was indefinitely postponed.
However, cautious optimism can be seen in statements by Yoshimi Inaba, Toyota’s new chief of North American operations.
Inaba, asked Monday whether the company would shelve its Mississippi plant, said, “I hope not,” and added, “I'm not that pessimistic” about its future, the Detroit Free Press reported.
Nothing that Toyota spokespersons have said in Tupelo or elsewhere has indicated that the Blue Springs plant won’t be activated, and Toyota has a long history of fulfilling commitments once made. It has kept its financial commitments to the state and the PUL counties even though production is on hold.
Were it to cancel the Blue Springs plant Toyota would owe Mississippi and the PUL counties several hundred million dollars for the state’s and alliance’s financial backing and incentives.
Our region, the PUL Alliance, and the state have fulfilled all commitments made on schedule.
Neither our region nor Toyota can control the economy, and as it recovers we continue to believe that some kind of Toyota will be manufactured in Blue Springs.
Let's face it -- HOPE IS NOT A STRATEGY!
Haven't we learned that yet?
They're going to do what's right for their business and I SERIOUSLY doubt that means opening that plant anytime in the foreseeable future.
They have excess capacity at all of their NA plants and it seems much more logical to try and consolidate some of that capacity and use it to build cars than to spend an additional $1B outfitting and opening a new facility -- which would probably take a year to do if they started installing manufacturing equipment today.
The bottom line is that NOBODY here knows what they are going to do. When it comes to decisions like these, only the very highest management levels know what's going to happen more than a few days before a public announcement.
They won't tell the local folks until they're good and ready for it to be public knowledge.
And just because they've decided to liquidate NUMMI, doesn't mean good news for this plant. And it could mean very bad news for this plant.
But, there are plenty of reasons why NUMMI should be closed that have very little if anything to do with the Mississippi plant.
Hmmm....According to this very column, Yoshimi Inaba is Toyota's new chief of North American operations. I suppose that we could consider him being a credible spokesperson.
Here's what the Detroit Free Press also reported on July 20:
INABA SAID THAT INCLUDED POSSIBLY NOT OPENING THE MISSISSIPPI PLANT, A $300 MILLION PROJECT THAT WAS SUPPOSED TO BUILD SPORT UTILITY VEHICLES AND THEN THE PRIUS HYBRID BEFORE BEING PUT ON HOLD LAST YEAR.
When asked about whether Toyota would shelve its Mississippi plant, Inaba said...."I 'hope' not"? and then added...."I'm not that pessimistic"?
NEITHER OUR REGION NOR TOYOTA CAN CONTROL THE ECONOMY, AND AS IT RECOVERS WE CONTINUE TO 'BELIEVE' THAT SOME KIND OF TOYOTA WILL BE MANUFACTURED IN BLUE SPRINGS.....????
I 'believe' that this column should state just as Inaba has stated and 'hope' that some kind of Toyota will be manufactured in Blue Springs. :-)
In the meantime, let's move 1st Monday Trade Day, Tupelo Flea Market and recruit a Monster Truck Show to the Blue Springs plant so that we can get a lil use out of it.