Toyota 2007 Annual Report Download - page 41

ANNUAL REPORT 2007 39
with good fuel efficiency. Additionally,
given recent growing interest in large,
fuel-efficient vehicles, demand for
fuel-efficient vehicles across all seg-
ments is increasing. In the medium-
to-long term, vehicle demand in
the U.S. market will likely continue
to grow, fueled by sustained eco-
nomic strength and population
growth.
Performance Overview
11th Consecutive U.S. Sales Record
In North America in fiscal 2007,
Toyota sold a record 2.94 million
vehicles and built 1.20 million vehi-
cles on a consolidated basis.
Including Toyota-brand vehicles
built by unconsolidated New United
Motor Manufacturing, Inc., North
American production amounted to
approximately 1.57 million vehicles.
In the United States, Toyota achieved
a new vehicle retail sales record for
the 11th year in a row, amounting to
2.60 million vehicles.
The Camry, fully remodeled in
fiscal 2006, sold well and in 2006
retained its title as the best-selling
passenger car in the United States
for the fifth year running. In fiscal
2007, our Kentucky plant added to
the Camry’s popularity by starting
up production of the Camry Hybrid.
Strong sales continued across other
models, such as the RAV4, Yaris,
Prius, and FJ Cruiser, which is only
sold in the U.S. market. Focusing on
younger, Generation-Y customers,
the Scion models saw a steady in-
crease in sales. Also, sales of the
remodeled Tundra, a full-size pickup
truck, have been strong since its
launch in February 2007.
Market Strategy
Achieve Sustainable Growth
by Further Increasing
Localization and Making
Products More Appealing
To cater to growing demand in the
North American market, Toyota is
raising local production capacity in
stages. Our sixth vehicle production
base in North America, a new plant
in Texas, started production of the
new Tundra in November 2006.
And, in April 2007 our capital tie-
up partner Fuji Heavy Industries
began consignment production of
the Camry for the North American
market at its plant in Indiana. In
2008, we plan to begin RAV4 pro-
duction at a second Canadian
plant. Further, in February 2007
Toyota announced plans to build a
new plant, in Mississippi, which will
begin manufacturing the Highlander
SUV around 2010.
In addition to our existing product
strategies of expanding our lineup
of hybrid vehicles and bringing new
models to market under the Scion
brand that target younger customers,
we will use the launch of the new
Tundra as a trigger to strengthen
our pickup truck business.
Construction of a New Plant
in Mississippi
Aiming to expand North American
operations and continue localization,
Toyota has chosen Mississippi as the
site of a new plant that is scheduled to
start production around 2010. The new
plant will be our eighth vehicle produc-
tion plant in North America. The follow-
ing is an overview of the plant.
Company name:
Toyota Motor Manufacturing,
Mississippi, Inc. (TMMMS)
Location:
Blue Springs, Union County,
Mississippi
Product:
Highlander
Production capacity:
150,000 vehicles annually
Investment:
Approximately $1.3 billion
Number of employees:
Approximately 2,000
North America
Increase North American Annual Production Capacity to 2.17 Million Vehicles by
around 2010 (planned)
1. Canada (TMMC) 270,000 vehicles
2. California (NUMMI)* 400,000 vehicles
3. Kentucky (TMMK) 500,000 vehicles
4. Indiana (TMMI) 350,000 vehicles
5. Texas (TMMTX) 200,000 vehicles (began production in November 2006)
6. Fuji Heavy Industries’
U.S. plant 100,000 vehicles (started up in April 2007)
7. Mexico (TMMBC) 50,000 vehicles (increase from 30,000 to 50,000 vehicles in 2007)
8. Canada, second plant 150,000 vehicles (scheduled for start-up in 2008)
9. Mississippi (TMMMS) 150,000 vehicles (scheduled for start-up around 2010)
*The California plant is a Toyota-General Motors joint venture company that is accounted for using the equity
method. Production capacity figures include vehicles for General Motors.
Note: Please see the Overseas Manufacturing Companies section on page 66 for full plant names.
Increase North American Annual Production Capacity to 2.17 Million Vehicles by
around 2010 (planned)
Mississippi plant’s groundbreaking ceremonyMississippi plant’s groundbreaking ceremony