Toyota Motor Corp. recently announced that it would convert its Alabama plant from car production to SUV production. To support this move, the company is also planning to invest $398M to optimize its San Antonio plant and boost truck production.
The San Antonio plant, where the Tundra and Tacoma are being assembled, will reportedly undergo reconfigurations to bolster Toyota’s truck production rate amid continuously rising demand for pickups in the United States.
The total amount of investment, however, is still yet to be confirmed and while the upgrades do not mean any new jobs in any of Toyota’s plants, they do have an effect on the plant’s capabilities with the installation of new robotics and other technologies.
Also included in Toyota’s revised strategy is the release of new versions of the Tundra and Tacoma, which the company claims, is aimed at drawing in more buyers for the brand. In fact, it seems to be working well for the Tacoma whose U.S. sales were up by 4.8% in the first six months of 2019. The model currently leads the midsize truck segment despite the addition of new players such as the new Ford Ranger and an upcoming Ram truck.
The brand, however, is facing a challenge in the full-size truck segment as the Tundra has struggled to compete with its rivals. The plant upgrades that Toyota is working on could be of help to the Tundra as well as next-generation trucks coming from the brand.
Another key component of Toyota’s new strategy is the introduction of a new platform. Temporarily referred to as the “F1,” the platform will be shared by the brand’s future pickup truck models and is expected to be ready for a late 2020 launch.
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