[Filmore]

Since the downturn and aftermath of 5 years ago Toyota has been reluctant to engage in significant CapEx, a plan they say will not change until 2016 at the earliest. However the rumors of Toyota scouting Mexican acreage could prove to be significant, or at least relevant to Scion and the iM

A Reuters piece showed up in mid September (the 15th, 2014) where Mexican manufacturing was explicitly put on ice.

Toyota Motor Corp (7203.T) is reconsidering a move to open a new compact car assembly plant in Mexico after company President Akio Toyoda told planners searching for a site to pause and review its rationale, executives familiar with the matter said.

According to four Toyota and group executives, momentum had been building for a decision this summer on the expansion, with the aim of starting production of the mass market Corolla in Mexico in a few years. But Toyoda then asked the team to "re-review" the project by year’s end, the people said.

Now its also entirely possible, that this Mexican facility could be the catalyst behind growing the Scion brand. Sold as the lower cost, entry level Toyotas to unsuspecting consumers a cheaper manufacturing base in Mexico could improve the margins on lower volume Scion models in the future.

"Given the high cost constraints in the United States and Canada, we have no choice but to use lower-cost locations in emerging countries to build cars," he said. "I have been pushing for this since 2002. We need to build a presence in Mexico, sales-wise and manufacturing-wise."

Now naturally the question is can Scion support its own exclusive manufacturing base? I doubt it, but I don't doubt that the fortunes (and I'm talking profit not philosophy) of Scion could drastically improve, underpinned by much lower manufacturing costs...

 

[Gotcha]

I can see Toyota opening a factory in Mexico. Everyone else is doing it, aren't they? What I can't see is Scion having its own dedicated factory. They simply don't have the sales to support that. If Scion builds their cars on the same platform as some Toyotas then they can easily share a factory.

 

[Patrick.S]

It would be a good move to further cut down on costs as i'm sure they'll save a good amount of money in a lot of areas

 

[Filmore]

I can see Toyota opening a factory in Mexico. Everyone else is doing it, aren't they? What I can't see is Scion having its own dedicated factory. They simply don't have the sales to support that. If Scion builds their cars on the same platform as some Toyotas then they can easily share a factory.

so which came first, the chicken or the egg?

Do you need the sales first and worry about supply later or worry about supply first and sales later?

Because as far as i know you cant sell a car you cant make, and you cant make a car you cant sell.

Point being, we cannot limit Scion based on what we're seeing now. The plan moving forward is to completely turn over Scion's lineup, If the revamped lineup is competitive how much is enough volume in your book for Scion to support their own facility?

Super really alot, alot, not alot, almost enough, close enough???

 

[DBB]

Well I don't know if Scion really needs its own facilities regardless. Scion isn't a seperate entity from Toyota like Lexus is, its simply a brand extension in the US.

 

[Patrick.S]

Fact is, Scion is no where near worthy enough of having their own dedicated production facility away from Toyota, it only makes sense to produce Scions in Toyota plants.

 

[Filmore]

Fact is, Scion is no where near worthy enough of having their own dedicated production facility away from Toyota, it only makes sense to produce Scions in Toyota plants.

Ok and no one has answered the question, WHAT DOES IT TAKE? LEts use information and words, what makes it FACT that Scion isn't 'worthy'? What is the metric of 'worthy', sales, perception, grandmums reluctance?

 

[Patrick.S]

They need volume, sales, the list goes on. I don't know about exact figures.

 

[Filmore]

They need volume, sales, the list goes on. I don't know about exact figures.

but they have both volume and sales already...

 

[Patrick.S]

more volume.