Quiz03
10 February 2003, 02:22 AM
Perry says Toyota will help strengthen Texas economy
Truck plant to open in San Antonio in 2006, create 2,000 jobs
02/05/2003
By TERRY BOX / The Dallas Morning News
Toyota Motor Corp. said Tuesday that it will build an $800 million truck plant in San Antonio as it seeks to bolster its growing market share with sales of more pickups and sport utility vehicles.
The automaker said the new plant will produce 150,000 Tundra pickups annually and employ 2,000 people initially. Construction work will begin later this year, Dennis Cuneo, Toyota senior vice president, said at a news conference Wednesday in San Antonio.
"Toyota appreciates the opportunity to do business in the state of Texas," Mr. Cuneo said. "We know we will find workers of the highest caliber here who have the skills, the intelligence and the enthusiasm to become an important part of the North American Toyota team."
Joining Mr. Cuneo at the news conference was Gov. Rick Perry, who said the new plant "will mean jobs, paychecks and a higher standard of living for thousands of Texans while helping Texas to build a stronger, more diverse economy."
Officials estimated that the plant will have a $1.4 billion economic impact over 10 years. Besides the initial 2,000 factory jobs, it is expected to create 5,300 related jobs and 2,100 construction jobs.
Most of the hiring will take place in 2005, officials said.
State and local officials also said they offered Toyota $133 million in incentives. About a third of that package was provided by local authorities, mostly in typical tax abatements. The state will provide workforce training and oversee the construction of a rail spur between two railroad lines that is needed to serve the plant.
"This is a great day for San Antonio, one that will fundamentally change our economy," said Mayor Ed Garza, who has been instrumental in bringing Toyota to San Antonio. "All I can tell the people of San Antonio is, 'Buckle up. Toyota is coming. And with them, many more opportunities for our city.' "
San Antonio officials had estimated the plant's economic impact at $1 billion within five years.
At least five states made a bid for the plant, with Texas and Arkansas ultimately competing fiercely for the factory, which will become Toyota's sixth in North America.
Automobile assembly jobs are some of the highest-paying manufacturing jobs available, with a starting wage of $15 an hour growing to $20 an hour at Toyota plants after three years. In addition, some of the parts suppliers may open factories near the plant, creating as many as 16,000 relatively high-paying jobs, San Antonio officials have said.
Over the last 20 years, Honda, Toyota, Nissan, Mercedes-Benz and BMW have opened new plants in the South and Southeast. The San Antonio plant will be Texas' second automobile plant, joining the 49-year-old General Motors assembly plant in Arlington.
The GM plant employs 3,000 people and builds more than 200,000 full-size sport utility vehicles a year.
Toyota may add an additional 2,300 workers in San Antonio for a possible SUV plant at the site, the San Antonio Economic Development Department has said.
"This is a good move for Toyota," said Norihiko Kamada, who helps manage $1.2 billion at Chuo Mitsui Asset Management Co. "Pickups are big-profit margin models, and this will help Toyota's localization even more."
The Texas connection
While Toyota officials were reportedly impressed with San Antonio's workforce and the city's proximity to Mexico, they also liked the idea of being able to proclaim that Toyota builds trucks in Texas – a nod to the state's significance as an international truck center.
"When some of the executives from Japan come out and talk to us, they are intrigued with the state as a truck market," said Steve Grogean, partner and general manager of Toyota of Richardson and a member of Toyota's board of governors. "They think this could be a way to move up their market share."
Over the last several months, Toyota's deliberations reportedly focused on two cities: San Antonio and Marion, Ark.
The site in eastern Arkansas is close to Memphis, which, with its network of interstate highways and rail lines, could have been a major distribution point for Toyota.
But the proposed truck factory in San Antonio will allow Toyota to take advantage of expanding parts factories in Mexico, where Toyota has broken ground for another truck plant that is expected to open in 2005.
Because of cheaper labor in Mexico, some parts can be produced there and transported to the San Antonio factory, perhaps at a savings – a major consideration these days in the auto industry.
Just being in Texas, however, might be almost as important to Toyota.
"Here, the real impact is being able to advertise Toyota trucks built in Texas," said Mr. Grogean, one of Toyota's biggest area dealers. "And you can bet you'll see some advertising to that effect."
Looking to boost sales
Last year, Toyota's sales of the Tundra were down about 9 percent, but the company has told its dealers that it is adding new models of the pickup for 2004. They will include a larger, heavy-duty version of the Tundra and a four-door "crew-cab" model.
The company is seeking to boost its global market share to 15 percent by 2010. It is currently slightly more than 10 percent.
In 2002, Toyota sold 1.5 million cars and trucks in the U.S. – up slightly in what was a down year for most automakers.
Toyota's American depositary receipts, each of which represents two ordinary shares, rose 60 cents, to $49.50 in New York Stock Exchange composite trading. They have fallen 2.8 percent in the past year.
Staff writers David McLemore in San Antonio and Wayne Slater in Austin , Bloomberg News and Associated Press contributed to this report.
E-mail tbox@dallasnews.com
Truck plant to open in San Antonio in 2006, create 2,000 jobs
02/05/2003
By TERRY BOX / The Dallas Morning News
Toyota Motor Corp. said Tuesday that it will build an $800 million truck plant in San Antonio as it seeks to bolster its growing market share with sales of more pickups and sport utility vehicles.
The automaker said the new plant will produce 150,000 Tundra pickups annually and employ 2,000 people initially. Construction work will begin later this year, Dennis Cuneo, Toyota senior vice president, said at a news conference Wednesday in San Antonio.
"Toyota appreciates the opportunity to do business in the state of Texas," Mr. Cuneo said. "We know we will find workers of the highest caliber here who have the skills, the intelligence and the enthusiasm to become an important part of the North American Toyota team."
Joining Mr. Cuneo at the news conference was Gov. Rick Perry, who said the new plant "will mean jobs, paychecks and a higher standard of living for thousands of Texans while helping Texas to build a stronger, more diverse economy."
Officials estimated that the plant will have a $1.4 billion economic impact over 10 years. Besides the initial 2,000 factory jobs, it is expected to create 5,300 related jobs and 2,100 construction jobs.
Most of the hiring will take place in 2005, officials said.
State and local officials also said they offered Toyota $133 million in incentives. About a third of that package was provided by local authorities, mostly in typical tax abatements. The state will provide workforce training and oversee the construction of a rail spur between two railroad lines that is needed to serve the plant.
"This is a great day for San Antonio, one that will fundamentally change our economy," said Mayor Ed Garza, who has been instrumental in bringing Toyota to San Antonio. "All I can tell the people of San Antonio is, 'Buckle up. Toyota is coming. And with them, many more opportunities for our city.' "
San Antonio officials had estimated the plant's economic impact at $1 billion within five years.
At least five states made a bid for the plant, with Texas and Arkansas ultimately competing fiercely for the factory, which will become Toyota's sixth in North America.
Automobile assembly jobs are some of the highest-paying manufacturing jobs available, with a starting wage of $15 an hour growing to $20 an hour at Toyota plants after three years. In addition, some of the parts suppliers may open factories near the plant, creating as many as 16,000 relatively high-paying jobs, San Antonio officials have said.
Over the last 20 years, Honda, Toyota, Nissan, Mercedes-Benz and BMW have opened new plants in the South and Southeast. The San Antonio plant will be Texas' second automobile plant, joining the 49-year-old General Motors assembly plant in Arlington.
The GM plant employs 3,000 people and builds more than 200,000 full-size sport utility vehicles a year.
Toyota may add an additional 2,300 workers in San Antonio for a possible SUV plant at the site, the San Antonio Economic Development Department has said.
"This is a good move for Toyota," said Norihiko Kamada, who helps manage $1.2 billion at Chuo Mitsui Asset Management Co. "Pickups are big-profit margin models, and this will help Toyota's localization even more."
The Texas connection
While Toyota officials were reportedly impressed with San Antonio's workforce and the city's proximity to Mexico, they also liked the idea of being able to proclaim that Toyota builds trucks in Texas – a nod to the state's significance as an international truck center.
"When some of the executives from Japan come out and talk to us, they are intrigued with the state as a truck market," said Steve Grogean, partner and general manager of Toyota of Richardson and a member of Toyota's board of governors. "They think this could be a way to move up their market share."
Over the last several months, Toyota's deliberations reportedly focused on two cities: San Antonio and Marion, Ark.
The site in eastern Arkansas is close to Memphis, which, with its network of interstate highways and rail lines, could have been a major distribution point for Toyota.
But the proposed truck factory in San Antonio will allow Toyota to take advantage of expanding parts factories in Mexico, where Toyota has broken ground for another truck plant that is expected to open in 2005.
Because of cheaper labor in Mexico, some parts can be produced there and transported to the San Antonio factory, perhaps at a savings – a major consideration these days in the auto industry.
Just being in Texas, however, might be almost as important to Toyota.
"Here, the real impact is being able to advertise Toyota trucks built in Texas," said Mr. Grogean, one of Toyota's biggest area dealers. "And you can bet you'll see some advertising to that effect."
Looking to boost sales
Last year, Toyota's sales of the Tundra were down about 9 percent, but the company has told its dealers that it is adding new models of the pickup for 2004. They will include a larger, heavy-duty version of the Tundra and a four-door "crew-cab" model.
The company is seeking to boost its global market share to 15 percent by 2010. It is currently slightly more than 10 percent.
In 2002, Toyota sold 1.5 million cars and trucks in the U.S. – up slightly in what was a down year for most automakers.
Toyota's American depositary receipts, each of which represents two ordinary shares, rose 60 cents, to $49.50 in New York Stock Exchange composite trading. They have fallen 2.8 percent in the past year.
Staff writers David McLemore in San Antonio and Wayne Slater in Austin , Bloomberg News and Associated Press contributed to this report.
E-mail tbox@dallasnews.com