Toyota to Have ‘No Troubleʼ Selling Mississippi Corollas, Exec Says

After several setbacks, Toyota’s latest U.S. plant in Blue Springs, MS, is on target for launch this month.

The once-dormant 1,700-acre (688-ha) manufacturing complex in northern Mississippi is scheduled to begin producing the ʼ12 Corolla shortly, despite continued economic uncertainty and March’s devastating earthquake and tsunami in Japan that hamstrung global production and startup activities.

Carter: Optimistic U.S. economy can continue recovery.

In an interview with WardsAuto, Bob Carter, Toyota Motor Sales U.S.A. group vice president and general manager, says the new plant will help the auto maker meet still-strong U.S. demand for the Corolla and continue a shift in sourcing toward North America and away from Japan.

Here are highlights from that interview:

WardsAuto: What is the role of the Blue Springs plant in Toyota’s overall assembly and production plans at this juncture? What does it signify for Toyota and its role in the U.S. auto market?

Carter: The new plant in Mississippi could not come at a better time. Demand for Corolla continues to be strong, and an added 150,000 units of capacity will allow us to meet that demand and replenish inventories that were depleted following the Japanese earthquake/tsunami. We'll have no trouble selling them, believe me.

WardsAuto: Can you comment on what the $800 million U.S. investment the plant means as far as Toyota’s overall strategy in America?

Carter: In terms of our overall strategy, we have always believed in building cars where we sell them. With our new plant in Blue Springs, we're not only adding 2,000 new jobs, but we're also continuing to boost our NAP (North American Production) ratio, which is already near 70%.

We think this approach is the way to go for several reasons. We contribute to local economies, build cars that are better suited to local customer needs and also protect ourselves from currency fluctuation.

WardsAuto: Are you on schedule to start up production and how is production overall shaping up?

Carter: This is Toyota’s 10th U.S. plant (14th in North America) and is ahead of schedule and slated to begin mass production of our best-selling (ʼ12 model) Corolla in October.

WardsAuto: Are there any plans to build any other Toyota models at the Blue Springs complex?

Carter: There are no plans to add additional models to the plant at this time.

WardsAuto: Some initial key issues for Toyota arose when the company was beleaguered by stalled construction and production. Does the new plant signal a sign of confidence in the U.S. economic recovery and your confidence in the North American market?

Carter: We continue to be optimistic that the U.S. economy can continue on a steady path to recovery, albeit at a slower rate than we'd like to see.

WardsAuto: What about long term, what is Toyota's commitment to the U.S. market, given all the challenges over the last three years, especially with product recalls and production slowdowns?

Carter: Long term, when you look at trends including birth rate, immigration and other factors, there's no question that the U.S. will remain one of our most important growth markets. Our president, Akio Toyoda, has pledged his commitment to the U.S., giving us greater autonomy in decision-making, while continuing to invest in our operations here.

We're in it for the long haul here.

WardsAuto: What are you hearing from your U.S. dealers in terms of sales viability?

Carter: While the recent stock market uncertainty hasn't helped consumer confidence, the feedback we're getting from our dealers is that the retail environment continues to improve. That's great news for us as the No.1 retail manufacturer, because it means more customers are visiting our showrooms.

At the same time, we're just beginning an all-out U.S. product blitz, with 20 new or redesigned vehicles being introduced in the next 24 months, including Camry, Prius V, Prius C, Scion iQ, Yaris and others.

WardsAuto: Is Toyota standing by its previous forecasts of more than 12 million units this year?

Carter: We continue to forecast 12.5 million units for the U.S. market in 2011. While we haven't yet issued our 2012 forecast, we're confident that the market can recover to 15 million-16 million units again by 2015.

WardsAuto: What about employee hiring in Blue Springs? How many workers is Toyota planning to hire in total and by when?

Carter: Out of 2,000 total team members, Toyota Motor Manufacturing Mississippi will employ approximately 1,500 team members by the end of 2011. We’re forecasting employment will be 2,000 by spring 2012.