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Saturday, July 12, 2008

Toyota hunkers down to hold Texas truck market

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Even though full-sized Tundra pick-up trucks won't be rolling off the production line of Toyota Motor Corp.'s factory here next month, the world's biggest automaker is keeping 2,000 plant workers on the payroll while it waits out a downturn in demand for its biggest gas-guzzling models.

While its Big Three U.S. rivals are shutting down truck plants and laying off workers, Toyota is hunkering down to keep its foothold in the heart of U.S. truck country.

Toyota will suspend Tundra production at its sprawling San Antonio factory in early August for three months due to slow sales, which are down nearly 50 per cent for the first six months of 2008 versus a year earlier. Record gasoline prices over $4 a gallon have sent consumers scrambling for smaller, more efficient models.

But that doesn't mean the plant's workers won't be busy.

"Team members will continue to report to work and will continue to work as a two-shift operation, and they will continue to be paid 100 per cent of wages," said Toyota spokesman Mike de la Garza.

But instead of building trucks, workers will spend their time in "training and development, to continue quality improvement activities, and to perform community service work," Toyota said.

The company's decision has built up considerable good will in a state where big trucks are synonymous with blue-collar oilfield roughnecks and cattle ranchers.more on : thestar.com

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