Motor North America plans to invest another $2 billion in U.S. production capability in the next two years, without building a new plant.
Jim Olson, senior vice president of TMNA, says's total investment in North America will be $12 billion.
Toyota already has decided it never again will build a plant with the 500,000-unit capacity of its Georgetown, KY, facility, as it is too big to manage efficiently, Mr. Olson says.
Mr. Olson also says the New United Motor Mfg. Inc. (NUMMI) facility in Fremont, CA, is operating at maximum capacity. The joint venture withCorp., which will assemble the new Pontiac Vibe, would need a new paint booth facility to raise capacity.
Environmental concerns will produce greater problems for the industry in the future, Mr. Olson says. He predicts the world's vehicle population will climb to 1.1 billion by 2050 and every gallon of gasoline they burn will emit 20 lbs. (9.1 kg) of CO2.
Mr. Olson says it will “place a terrible burden on the planet unless automakers, energy providers, government and suppliers join hands to fund the massive investments necessary to quickly develop greener drivetrains, fuels and fueling networks.”