Professor Elam

Accounting & Investing Info for San Antonio A & M

recent posts

about

Another First, Toyota Closes first Plant IN USA

When it rains it pours, in California. Now that GM has axed Pontiac, Toyota cannot go it alone at the NUMMI plant. 

While the article does not say we know Toyota is moving the manufacture of the Tacoman pickup to San Antonio. I suspect they will throttle back on gas hog Tundra to better make the new CAFE requirement. 
We study sunk costs in managerial accounting, here is a good example. 

I still believe the Tundra, the big pickup, was the first strategic mistake for Toyota. It is not their traditional market and should have been left to the Americans. And with more harsh gas mileage requirements surely coming along, what were they thinking…..

And of course the plant here is not unionized, the New Civil War continues between union and non union states. 

Posted in

One response to “Another First, Toyota Closes first Plant IN USA”

  1. Austin Kroll Avatar
    Austin Kroll

    According to Mayor Castro’s interview on KTSA this morning, Toyota is indeed bringing the Tacoma here to manufacture it along with the Tundra. I found it interesting b/c Castro (noted Socialist and big government/union goon) was championing how San Antonio and Texas, due to their Business Friendly economies and tax situation, is a beacon in the storm for companies looking to get to more favorable markets. The host pressed Castro on this, knowing this was contrary to Castro’s true beliefs on government interference and meddling in the economy, being that he is a Keynsian, not an Austrian; and Castro began to backtrack a bit talking about how if we didn’t spend more education and the arts, San Antonio would not be as desirable in the future for relocations. Nonetheless, even Julian the Union Man is being forced to realize that his promises to the SEIU may not be attainable in the near future.
    As for the Tundra and Toyota, there is an old addage in Banking, never fish outside your own pond/stock tank. The Tundra may/could be a bit of misstep for them, but with the backlash against Government Motors, Toyota may be able to sustain Tundra.

    Like

    Reply

Leave a reply to Austin Kroll Cancel reply