Ford, Toyota Reveal Plans to Increase Production Capacity

It was announced this week that both an import and domestic OEM are preparing to boost production as demand increases. Starting with the Blue Oval, Ford said it will produce nearly 40,000 additional vehicles this summer by reducing its summer shutdown in several North American plants, including six assembly plants, from the traditional two weeks to one.
Commenting on the news, Jim Tetreault, vice president of North America manufacturing, noted, “We are working most of our North America plants at maximum capacity and we are adding production shifts in three of our assembly plants this month alone.
“Requiring more capacity from our plants is a good problem to have and having the flexibility to add a week of production in our plants goes a long way toward solving it,” he continued, noting that increasing demand has spurred the recent decision.
The assembly plants taking just one week of summer shutdown in 2012 include Chicago Assembly, Dearborn Truck, Kentucky Truck, Louisville Assembly, Michigan Assembly and Kansas City Assembly.
Furhermore, other plants taking just one week of shutdown include Dearborn Engine, Chicago Stamping, Cleveland Engine No. 1, Lima Engine, Essex Engine, Sterling and Rawsonville.
Toyota to Increase Production Capacity at Kentucky Plant
In light of the recent gas-spike and rising consumer interest in gas sippers, Toyota revealed it will increase annual engine assembly capacity of four-cylinder engines by more than 100,000 at its plant in Georgetown, Ky.
The increase will begin August 2013, and will create about 80 new jobs, officials noted.
The plant —Toyota Motor Manufacturing, Kentucky (TMMK) — currently assembles engines for the Avalon, Camry and Venza, all built on site.
The planned capacity increase will supply engines for the plants Camry and Camry Hybrid and RAV4 in Woodstock, Ontario and will increase engine production at the Kentucky plant to more than 500,000 annually.
Commenting on the news, Kentucky Gov. Steve Beshear, noted, “Twenty six years ago, I took part in Toyota’s groundbreaking in Georgetown, which was filled with excitement for Kentucky’s future.
“Today, we still have that same excitement for Toyota’s past, present and future in the commonwealth. This latest expansion brings Toyota’s total investment to nearly $6 billion, meaning billions of dollars in incomes for thousands of Kentuckians, changing lives, strengthening our economy and improving the commonwealth,” he continued, expressing enthusiasm for the news.
With the capacity increase, the plant will raise its total employment to approximately 6,700, officials shared.
“This is great news for our team members and our company,” said Wil James, president of TMMK. “This project is the result of the strong partnerships we have locally and across the state, which will help grow our business and strengthen the communities where we do business.”
And this announcement is just a one of a string of production increase announcements from the OEM since February, including Toyota plants in Indiana, West Virginia and Canada.
The cumulative investment is approximately $565 million, and nearly 1,000 jobs are being added, the company concluded.
“This engine production increase, and the several announcements before it, reflect our growing optimism for an improving North American market,” said Steve St. Angelo, executive vice president of Toyota Motor Engineering & Manufacturing North America.