Toyota said Friday it has started production of its Tundra full-size pickup truck at its mammoth new plant in San Antonio, Texas.
Construction of the plant began back in 2003 at an originally estimated cost of $800 million, but that ballooned to $1.3 billion after the company expanded capacity by another 50,000 trucks. Rising materials costs, particularly for steel, also drove the pricetag higher. When the plant reaches full operations next spring, it will have the capacity to produce 200,000 Tundra full-size pickup trucks and will employ 2,000 people.
Toyota said the 2,000-acre site houses 21 suppliers who produce parts and components and ship them directly into the plant. The on-site suppliers include seven minority-owned joint ventures, will employ 2,100 at full production, and have cumulatively invested approximately $300 million.
"The full-size pickup truck market is, by far, the single-largest opportunity for Toyota's future growth plans in the U.S.," said Don Esmond, senior vice president of automotive operations, Toyota Motor Sales, U.S.A., Inc. "Thanks to this highly-efficient plant, the in-house suppliers and all the team members, we plan to take full advantage of that opportunity. The new Tundra will arrive in showrooms in February."
Toyota production capacity in North America in 2008 is expected to reach 2.02 million vehicles (current capacity is 1.75 million vehicles) annually as a result of the increased production capacity at the North American production site of Fuji Heavy Industries Ltd. (Subaru of Indiana Automotive, Inc.) to 100,000 vehicles per year of the Camry; an increase in production capacity in 2007 by 20,000 vehicles per year at Toyota Motor Manufacturing de Baja California, Mexico; and the additional production capacity of 150,000 vehicles per year at the No. 2 Plant of Toyota Motor Manufacturing, Canada, Inc., where production is expected to begin in 2008.