Toyota To Name New U.S. Assembly Plant

With the mounting auto demands, Toyota Motor Corp. is in need of a new assembly plant in the United States. In this regard, the automaker eyes a new facility in South to serve as its 8th assembly plant in America. Auto enthusiasts are expecting that Toyota would name the new plant soon.

Toyota is considering 3 to 5 locations, including Arkansas, Chattanooga, Marion and Tennessee. This information was reported by Wall Street Journal last Thursday. According to the paper, Alamo, and North Carolina also are possibilities. The automaker intends to add another US assembly plant to boost its production. With the new plant, Toyota anticipates to produce 200,000 vehicles. Said production is expected to begin in 2009. The new plant together with other Toyota plants would increase production to about 2.2 million vehicles annually, compared with the 1.5 million vehicles it is producing at present.

The new plant would also assemble Toyota Highlander parts accessories for the next-generation of said sport utility vehicle which is likened to Chrysler Pacifica. The wagon uses some of Toyota Solara parts.

Toyota has been contemplating on the plant purchase issue for months now. The new plant is expected to aid in taking more of the American market from Toyota's auto rivals. It was also reported by the paper that the plant would strengthen Toyota's hand if a backlash against non-U.S. brands arises from the increasing troubles of domestic automakers and their suppliers. Toyota will likely expand its existing engine-manufacturing facilities in the United States, most likely by beefing up its engine plant in Alabama.

Toyota posted over 12 percent increase in both December and full-year sales. Its December sales boosted its 2006 sales total to 2.54 million. According to analysts Toyota is poised to climb higher. "Toyota rising to third place is a warm-up for its rise to No. 2 during 2007 in the U.S. when it overtakes Ford, and also as it rises to No. 1 globally and overtakes GM,'' reported Glenn Reynolds, chief executive officer of New York-based research firm Creditsights Inc. "The Camry was yet again the best selling car in America, for the fifth consecutive year and for the ninth time in the past decade.''