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Toyota seeking U.S.-made hybrid components; volume to determine scope of future efforts

LINDSAY CHAPPELL | Automotive News and YUZO YAMAGUCHI | Automotive News
Posted Date: 6/17/05

To build its first U.S.-made hybrid vehicles, the obvious solution for Toyota Motor Manufacturing North America Inc. is to import existing electrical technology from Japan.

But Toyota also will try to source as much hybrid ware as possible from North American suppliers.

The company already is looking for some U.S. parts for the 2007 Camry Hybrid, which it will begin building in late 2006 in Georgetown, Ky. It also is seeking the right production volume levels to begin recruiting its major Japanese hybrid component suppliers to North America.

Magic number: 100,000

Koei Saga, general manager of Toyota's hybrid vehicle system engineering division in Japan, says the volume is probably 100,000 vehicles a year.

"If we build 100,000 of one (hybrid) model a year, I think we would start a discussion" about a local supply base," Saga says.

Hybrids use gasoline engines and one or more electric motors to power the wheels.

Toyota's hybrid-component supply chain will remain in Japan for now.

Saga says Toyota has not yet discussed North American production of battery packs with Panasonic EV Energy Co., its battery source for all Toyota hybrid vehicles. Panasonic EV is a joint venture between Toyota and Matsu****a Electric Industrial Co.

Toyota forecasts initial U.S. production of up to 50,000 Camry Hybrids a year starting late next year. It believes some of the model's content could be sourced locally when it starts production. It has not said which of those components would be sourced first.

"It's definitely not a technology we plan to leave in Japan," says Dan Sieger, spokesman for Toyota Motor Manufacturing North America.

Obtaining the necessary components will be the real restriction in how many hybrid vehicles Toyota manufacturers here, says Jim Press, COO of Toyota Motor Sales U.S.A. Inc.

Press predicted that hybrid parts will be easier to source here as other hybrid vehicles go into production around the industry.

Nissan North America Inc. is preparing to build an Altima hybrid at one of its two U.S. plants. That vehicle will rely on a Toyota hybrid powertrain.

Planting seeds

Toyota also is considering a plan to produce its Prius hybrid car in North America. That nameplate sold 9,461 units in May, an increase of nearly 140 percent from the year-ago month.

"This isn't going to be the only vehicle of hybrid derivation that's going to be built in the United States," Press said of the Camry. "Hopefully this will plant the seed, because the industry needs to go to this solution."

Gary Convis, president of Toyota Motor Manufacturing Kentucky Inc., said the component differences between the gasoline-powered Camry and the new hybrid version are numerous.

"There are many more mounting studs, computer modules, wiring connections and unique parts needed to support this hybrid system," Convis said in May. "Assembling the batteries, converters and wire harnesses is very different from a conventional vehicle."

http://www.autoweek.com/news.cms?newsId=102570

LexFather

I don't care too much where its made, Toyota has proven they are in control of quality.

L-Finesser

Toyota is smart to manufacture in America. The more the better. With the Detroit-born brands dying, it's important that Toyota be seen as a company that's contributing to America, not simply plundering our dollars.