Although many economists have begun to see light at the end of the recessionary tunnel, Toyota Motor America chairman Yoshimi Inaba claims that Toyota is not currently profitable in North America, even though the company has taken numerous cost-cutting measures in recent months. According to Inaba, Toyota is reviewing its entire U.S. operations plan, and among the major decisions facing the company is whether to open its new factory in Mississippi (still under construction) and what to do with the NUMMI plant in California.
The shell of the Blue Springs, Mississippi facility has been completed, but no factory equipment has been installed. Toyota had initially planned to use that plant to boost production of the Toyota, but then switched focus to the Prius when hybrid interest peaked last year. Construction was suspended entirely last December amid the international economic meltdown and it's been sitting mothballed ever since. Inaba said that he hopes to move forward with development of that plant in the future, although the company is, like every other automaker, keeping a tight rein on production.
Read Article