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Toyota Production Facilities In North America


The location of Toyota’s production facilities across the North America is founded on the demands of logistics and efficiency in operations. Apparently, the region boasts of about ten production facilities distributed across the three key countries. Among them includes three in the Ontario province of Canada, one in Baji California, Mexico and the rest in the United States. An evaluation of their location vis-a-vis the role of the singular facilities allows for an insight on the choice of location.

The primary point of evaluation will involve establishing the duties of the facilities in both Mexico and Canada. Apparently, the Mexican facility deals with both the manufactory and assembly of Toyota cars, with specialization on Tacoma brand. On the other end, Canada has an engine plant in Cambridge and both an assembly and production facility in Woodstock. In addition, the country has an aluminium wheels section in the British Columbia province. Apparently, the facility serves the rest of the continent.

The six facilities in the United States are distributed in proximity to the two countries. On that note, the facilities in Mississippi, Texas and Alabama may be considered to be aligned to the one in Mexico. Conversely, the ones in Kentucky, Indiana and Virginia may be considered to be linked to the facilities in Canada. On that note, it is of significant interest to delve on the roles of the respective facilities.

Reasons behind Toyota’s choice of the region


The three facilities proximal to Canada deal in both production and assembly. Apparently, Both the Kentucky and Virginia facilities are involved in the development of engines while the Indian unit narrows on assembly and full vehicle manufactory. Arguably, their location remains best envisioned on the contribution they earn from the Canadian facilities. Besides, the location of the respective facilities remains at logistical convenience in respect to the movement of the parts required in the assembly of the final products. Apparently, Both the Indiana and Woodstock facilities are involved in the full vehicle assembly. On that note, the two facilities remains best located in a position that is logistically convenient with respect to access of accessories.

The location of the Alabama engine facility may be linked on the needs associated with the rest of the units in Texas, Mississippi and Mexico. Apparently, the latter locations stands to reap maximum logistic benefits from the proximity of the engine facility. Arguably, the Toyota’s decision on their location is partly contributed by the reduced cost that will be associated with the movement of spare parts and other accessories.

Toyota seems to have placed significant interest towards the establishment of its production centers in the United States region. In addition to United States, Canada and Mexico have heard similar share of interest from the firm. Arguably, Mexico and the United States found the largest share of production outfits associate with the automobile industry. Apparently, the sustainable intermodal network has been linked to the prospective promotion of the region as being an ideal production location. Apparently, the firm has considered the distribution of its outfits or production across the entire region. On that note, the firm has achieved its distribution target through the embrace of the concept of globalization of production. Apparently, the regions of the North America fall under sustainable periods of transportation. It further implies that the concept of production may be promoted with respect to the depth of specialization associated with the respective regions. In addition, there exist little considerations of border limitations when perceived along the concept of business and production. On such note, the distribution of production facilities in North America and Canada is advised by the flexibility of connections services associated with the member countries. Mexico, United States and Canada have a favorable policy of business operations that facilitates the interlinking of Toyota’s production facilities in accordance with the structures of specialization.

A focus on the models of labor that are provided in the regions under consideration remains critical in the evaluation of the interest associated with the preference of Toyota. Apparently, an automobile firm remains positioned to benefit from both semi-skilled and skilled labor. Apparently, both the United States Canada regions are flooded by both skilled and semi-skilled labor entities. Conversely, the Mexican region, on the other hand, expresses an increased variety of semi-skilled labor. It further implies that Toyota remains positioned to make ultimate market advancement through the tapping of the labor pool. Additional inputs such as training of the personnel towards the improvement of their input to the process of production remain under realistic margins of acquisition.

Labor as a cost of production is defined by various critical perceptions. Among them is the trend that is perceived in labor policies. Apparently, labor cost is expected to always project upwards. It also implies that the interest of the firm reserves at ensuring the period of projection remains manageable. In addition, such a factor remains central in the advising of Toyota on the establishment of the United States’ production units. Arguably, the firm needs to ensure that the location provides a sustainable labor projection. In addition, the firm needs to ensure that the cost will be favorable to the pricing interest under anticipation. Apparently, firms tend to push costs incurred in the process of production to the consumer. However, such a move remains positioned to jeopardize the market interests of Toyota due to the nature of its market.

Another determinant of labor as a factor of production remains captured on the anticipated sales projection. Apparently, a firm is expected to make revenues that surpass the cost incurred in the production in the hope of registering profits. Such implies that the location of the production outfit needs to be directly linked to the market. On such note, the firm will ensure a steady market supply chain; thus minimizing possible cost that may be of a detrimental effect on the revenue projection. Arguably, the interest expressed by Toyota in the United States, Mexico and Canada as centers of production need to be advised by such a factor.

The United States founds the largest market quarter for the automobile industry. Arguably, the observation projects the region to the radars of the various manufactures across the world. It remains of significant assistant to note that each of the firms aims at making a profit from their interactions with the region. On such note, Toyota remains committed towards the acquisition of a meaningful share of the target market. Establishing production arms in the region implies the immediate minimization of the cost incurred in the fueling of the supply chain. In addition, the firm is allowed an opportunity to relate directly to the target market, thus improving its efficiency and subsequent performance. Arguably, a readily available labor force contributes grossly to the promotion of the production agenda perceived by the firm.

The final perception that may be linked to labor as a factor that promotes the integration of the Toyota’s production outfit in United States, Canada and Mexico remains captured in the variability of labor cost. Apparently, fixed labor insinuates of possible difficulties in sustainability during periods of low market performance. On that note, the perception projects the interest of the firm to the government regulations imposed in the target region. Apparently, United States, Mexico and Canada express a sustainable policy on employment. A similar argument may be suggested through the imposed contract regulations. Arguably, a firm interest in establishing a business outfit in the region enjoys the liberty of accessing casual labor in an affordable package. Such an observation assists in the explanation of the interest expressed by the firm towards the regions above.

Similar suggestions may be proposed regarding the availability of raw materials. Apparently, the cost of availing raw materials to support the process of production in the Southern Auto Corridor is rather favorable in respect locating of the respective facilities, including those in Mexico and Canada. Besides, the region is well position towards the generation of the inputs required for the promotion of an automobile production facility. In addition, the region boasts of sufficient advancement in technology input. Such further suggests the region as an ideal location for establishing an automobile production outfit, hence the preference by Toyota.

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