Toyota goes way over budget in Texas

Toyota Motor Corp.'s new Texas Tundra factory will cost at least $430 million more than planned because of rising construction costs and late upgrades in plant technology.

The San Antonio plant, targeted to cost $850 million, will end up at $1.28 billion, the company says. The bill is still being tabulated even though production began Nov. 1.

Costs were inflated by a series of unexpected issues and some changes in plans, says Gary Convis, executive vice president of Toyota Motor Engineering & Manufacturing North America Inc. in Erlanger, Ky. The U.S. subsidiary oversees Toyota's assembly plants.

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kart1 - 12/5/2006 12:02:19 PM

+2 Boost

Money isn't the problem here, it is that Toyota underestimated the costs.

rocker - 12/5/2006 1:14:05 PM

+2 Boost

That's right just throw more money at it, that will fix the problem.

rocker - 12/5/2006 1:06:20 PM

+3 Boost

Merely a flesh wound.

1970toyotamarc - 12/5/2006 2:53:45 PM

+1 Boost

Autospies is just getting ridiculous

1970toyotamarc - 12/5/2006 3:09:14 PM

+1 Boost

The linked article explains that the new facility is doing a lot more than originally planned. It will now produce 50,000 more trucks than planned; it will use more advanced technology: it will house suppliers on site. And other articles have revealed the multitude of new ideas Toyota is implementing at this state of the art facility.

Damn Toyota for investing more in America. They should rot in hell for being so extravagant with their money.

jeffy210 - 12/5/2006 3:14:56 PM

+3 Boost

Living in San Antonio, I know that Toyota was one of the best things that has happened to the city lately. Just the sheer amount that Toyota is investing in the city for starters. And all of those jobs are putting money right back in our economy.

I was also impressed when I learned that most of the part suppliers will be on site as well. That meant almost an additional 1,000 jobs were created.

People talk about Toyota being this foreign, import only company, but seriously (and not to start a flame war), they are investing more in america than some of the american companies.

mstangpny07 - 12/5/2006 4:56:46 PM

+3 Boost

I remember driving by the plant while it was being built. There were Silverados and some F-Series driven by construction people. Didn't see any Toyota trucks!

paul3230 - 12/5/2006 5:14:01 PM

+4 Boost

Investing more than who?? The big three?? Come one man! I don't knock Toyota for investing at all (I welcome it), but don't get it twisted, The big three individually still have a larger manufacturing footprint than Toyota. GM has what, 80 some odd plants comepared to Toyota's 8 or so? Toyota is more efficient...but they also haven't been in the US for over 100 years like big 3, so they can look at what NOT to do. That's a huge advantage...why do you think GM is so successful in China?

rocker - 12/6/2006 12:08:10 PM

+1 Boost

Perception is everything.

delan - 12/5/2006 11:22:36 PM

-1 Boost

Another seemingly negative Toyota news item from Agent 009. Well I am shocked by golly...

2JZSoarer - 12/6/2006 2:53:31 AM

0 Boost

$850 million is pocket change for Toyota,does Toyota even have a budget!!