Report: Tacoma Production Stoppage at Tijuana Mexico Plant

[massm22]

Interesting, hopefully this won’t impact QC?
Also explains why most dealers still have a relatively low inventory of Tacoma’s.

https://www.reuters.com/business/au...-suppliers-hit-by-worker-shortage-2024-05-17/

Exclusive: Toyota repeatedly halted Mexico plant after suppliers hit by worker shortage, sources say

TOKYO, May 17 (Reuters) - Toyota Motor (7203.T), was forced to repeatedly halt production at a Mexico plant in February and March after local labour shortages snarled output at suppliers, according to people with knowledge of the automaker's operations.

The stoppages, details of which were corroborated by documents from Toyota and suppliers reviewed by Reuters, illustrate a potential choke point for the world's top automaker, which plans to produce 10 million vehicles this year.

Toyota halted production for a total 19 days in February and March at its plant in Tijuana, Mexico, where it makes the Tacoma pick-up truck, according to two of the people. Technical issues at the plant were also a factor in the stoppage, they said.
Reuters spoke to four people at suppliers and Toyota. All of them declined to be identified because the information has not been made public.

Toyota is now working with some suppliers to ease the strain. Still, some parts makers are barely managing to keep production going because of the worker shortage, one of the people said.

The supply disruptions are the latest headache for the Japanese manufacturing giant, which has also been dealing with the fallout from a safety test certification scandal at subsidiary Daihatsu, as well as separate governance issues at two other group companies.

Those scandals have prompted the automaker to delay the start of the production of electric vehicles in the United States by six months to around June 2026, two of the people said. The EV delay was previously reported by Japanese media.

In response to questions from Reuters, Toyota Motor North America, the automaker's subsidiary, said: "Toyota's North American plants continue to face intermittent production delays due to supply chain disruptions. To minimise the impact, our teams are working diligently to do everything possible to lessen the inconvenience to our customers."

'FREQUENT HALTS'

In a letter to its North American supplier network in late April that was reviewed by Reuters, the automaker acknowledged the "frequent production halts" that were causing "inconvenience and concern".

At some suppliers, it said, regular employee turnover had lead to a decline in skills, while production capacity had decreased "due to issues with personnel, equipment and material supply".

The automaker requested details from parts makers on their challenges in North America and what kind of support they required.

Reuters was not able to determine whether the labour issues were hitting the suppliers of other Japanese automakers producing in the United States.

The supply-chain issues help explain some of Toyota's recent difficulties in the United States, even as it sees increased demand for vehicles, particularly hybrids. Toyota is expected to start selling a hybrid version of the Tacoma in the United States this year.

"There were some operational issues involving parts makers, and it became clear in the fourth quarter that production was not going as expected," Yoichi Miyazaki, Toyota's chief financial officer, said at an earnings briefing last week, adding that the automaker was also impacted by one-time costs related to production changes.

Last week Toyota booked a 27.5 billion yen ($176 million) operating loss in North America for January-March, although overall, it delivered record earnings.
Toyota has forecast a 20% profit decline in the current financial year, citing investments in both suppliers and strategy.

Robust economic growth in North America and rising wages have meant higher turnover as workers leave jobs in heavy industry for those with better conditions.
"Employees are frequently changing jobs in search of higher salaries. It has become difficult to secure personnel, and we can no longer maintain the required production volume," said one of the sources, who works at a supplier.

Toyota sold more than 230,000 of the Tacoma in the United States last year, representing about 10% of its total sales in that market. Only the RAV4 and Camry were bigger sellers.

Maybe it's time to bring manufacturing/ parts manufacturing to the US again?

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[Ruissimo]

my sport premium build has changed dates 3 times this month

Out of curiosity, how are you checking? Thanks!

 

[Independence Overland]

Maybe it's time to bring manufacturing/ parts manufacturing to the US again?

The US is facing the same issues, probably worse. Its been an problem since Covid.

 

[massm22]

The US is facing the same issues, probably worse. Its been an problem since Covid.

True, but if we sourced in the US instead of importing, we might. Or have the same issues… but then again… we probably would

 

[MT-Taco]

True, but if we sourced in the US instead of importing, we might. Or have the same issues… but then again… we probably would

Maybe the Tacoma is coming back to the USA?

https://sanantonioreport.org/toyota-expansion-south-side-plant/

 

[univurshul]

Maybe the Tacoma is coming back to the USA?

https://sanantonioreport.org/toyota-expansion-south-side-plant/

Sounds like that expansion in TX is outlined for increased Tundra & Sequioa production:

"Toyota is investing $531.7 million in its San Antonio plant to enhance its production capabilities. This expansion will focus on manufacturing the Toyota Tundra and the Sequoia SUV. The San Antonio plant will exclusively produce these large-frame vehicles, having transitioned the production of the smaller Tacoma pickup to facilities in Mexico (トヨタ自動車株式会社 公式企業サイト) (San Antonio Report) (FreightWaves).

The investment aims to upgrade the plant with advanced manufacturing technologies, making it more competitive and efficient. This development underscores Toyota's commitment to its operations in San Antonio and the broader economic impact it has on the region (San Antonio Report) (San Antonio Report).

 

[MT-Taco]

 

[BOBC61]

from my sales manager at the dealership

 

[BOBC61]

Out of curiosity, how are you checking? Thanks!

from my sales manager at the dealership

 

[Moundman]

The US is facing the same issues, probably worse. Its been an problem since Covid.

Yeah, when I ordered my Corvette it was the same thing. Many delays from supply chain, strikes and even a tornado that hit the factory.

 

[sethrog15]

Sounds like the Landcruiser being built in Japan is the rig to get this year!

My Trailhunter I ordered last summer is officially a 2025. Silver lining is the financing arm can eat a bag of dongs, I'm walking in there with cash.

Did your dealership confirm it was gonna be a 2025? Im on the list for TRD Pro since October and haven't heard anything

 

[zachavm]

Sounds like that expansion in TX is outlined for increased Tundra & Sequioa production:

"Toyota is investing $531.7 million in its San Antonio plant to enhance its production capabilities. This expansion will focus on manufacturing the Toyota Tundra and the Sequoia SUV. The San Antonio plant will exclusively produce these large-frame vehicles, having transitioned the production of the smaller Tacoma pickup to facilities in Mexico (トヨタ自動車株式会社 公式企業サイト) (San Antonio Report) (FreightWaves).

The investment aims to upgrade the plant with advanced manufacturing technologies, making it more competitive and efficient. This development underscores Toyota's commitment to its operations in San Antonio and the broader economic impact it has on the region (San Antonio Report) (San Antonio Report).

I would not be surprised if they also manufacture the eventual EV pickup there. A quick google search suggests that they are preparing EV production for Kentucky so it could be there as well.

 

[univurshul]

I would not be surprised if they also manufacture the eventual EV pickup there. A quick google search suggests that they are preparing EV production for Kentucky so it could be there as well.

the Stout EV pickup? They're looking to compete with the Maverick rn, correct?

 

[univurshul]

Did your dealership confirm it was gonna be a 2025? Im on the list for TRD Pro since October and haven't heard anything

Just being sarcastic. I've been in line for a 6' bed TH, a grand sitting at my dealer since last August '23, they have yet to get their first TH allocation. If I don't take delivery until late summer/the beginning of fall...thats some bullshit IMO. It's an overland vehicle made for off-roading, get it built & ready for summer or call it a '25 model already. Didn't even have price tags until a few weeks ago. SMH

 

[Wighty]

Did your dealership confirm it was gonna be a 2025? Im on the list for TRD Pro since October and haven't heard anything

Just FYI. I have a Pro reserved. I wasn't on any list either. I did an inventory search, found the color I wanted, called the dealer and reserved it. No deposit. It's in "production" as of this morning.

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