Biz Buzz

Automotive News is reporting that Volkwagon’s board will be meeting Tuesday to discuss where to put its new manufacturing plant. According  to AN, the German automaker has narrowed its choices to Alabama and Tennessee, and had dropped Michigan from its list of finalists.

Alabama is home to a Mercedes plant, and several German suppliers are in the state as well.

If VW chooses Alabama, could it be a boon for Mississippi? Or could it hurt in recruiting automotive workers? The plant might open in 2010, the same year the Toyota plant near Blue Springs is scheduled to open.

This should be interesting to watch…. stay tuned.

So, fellow drivers – what do you think of the ethanol that’s being mixed in your gasoline by up to 10 percent? It’s a law, you know.

Still, we’ve been hearing mixed reviews of the stuff, and I, for one, can say it has made my riding lawn mower go crazy.

However, I haven’t seen a significant drop in my gas mileage on my car.  Although it’s still a drop.

What’s your experience been?

With most highway speed limits at 70 mph, how does going back to 55 sound? Proponents say that doing so would help save gas, save lives, etc.

If you missed it in the Sunday Journal, here’s an excerpt from a story we ran:

For all the griping about spiking gas prices, there’s no clamor for the return of the little-lamented 55 mph speed limit of the ‘70s and ‘80s – though most agree it reduces consumption and saves money.
“It’s not that people haven’t thought of it – just no one is even close to discussing implementing it,” said Therese Langer, speaking for the American Council for an Energy Efficient Economy.
The U.S. Department of Energy estimates that the cost of driving rises faster above 60 mph – adding nearly 20 cents per gallon for each additional 5 mph. The Alliance to Save Energy in Washington estimates that restricting speeds to 55 mph could reduce the use of oil imported from the Persian Gulf by up to 20 percent a day.
Even so, “there doesn’t appear to be any eagerness on Capitol Hill to revisit the issue,” said Ronnie Kweller of the alliance.
No, indeed. Paul Hesse, a spokesman for the U.S. Energy Information Administration, said his agency willingly would analyze the value of a 55 mph speed limit if asked by a member of Congress. No one has asked.

I’ve been driving for 23 years now, so I remember the 55, then 65, now 70 mph limit days. I’ve never known very many people to follow the limits, except when a state trooper was around. And I’ve never known many of THEM to follow the speed limit, either.

I’ve voluntarily cut back about about 5-7 mph on my highway driving, and I’ve noticed a little bump in my mileage. These days, every bit counts.

Maybe 55 is a little drastic on the interstates. Cutting back to 60-65 sounds pretty good though.

On a sidenote, yesterday, my wife and I took a leisurely drive from Vicksburg back to our home in Baldwyn, staying on the Trace for much of the way and going 55. Usually, it takes us 4 hours; yesterday, it took us almost 4 1/2, and we weren’t any worse for the wear. And we were only passed twice!

The following aerial photos of Toyota Motor Manufacturing Mississippi is courtesy of Jack Savely of Mossy Oak Properties Pontotoc. Highway 78 runs along the bottom of the first photo. The Toyota site is at the top of the second photo, with Highway 78 running up and down the photo. Click here for more pictures of the site.

Click on the pictures for a bigger version. They were taken June 18.

This picture shows the road construction.

There has been some speculation - some dating back to the Feb. 27, 2007, when Toyota announced it was building a plant near Blue Springs - that a second phase will bring additional jobs and another vehicle line.

And when Toyota said last month that it was going to produce the Highlander in May of 2010 rather than late 2009, some wondered if it was time to go ahead and get that second phase going.

Well, we just spoke to Lacy Luckett, who has the unenviable task of dealing with media types like us. She’s the external affairs specialist for Toyota Motor Manufacturing Mississippi, as the plant will officially be called, and said there’s no Phase 2 in the works just yet.

“We have to get the first plant built first,” she said with a chuckle.

Now, we’ve visited the TMMMS site, and, yes, there is room for a second phase - and the area has even been pointed out to us. However, as Toyota officials have maintained: let’s get Phase 1 built first.

The buzz’s take: A second phase will be coming; we just don’t know when. And what will be built there? Oh, any number of vehicles.

So there you have it.

It’s not all doom and gloom in the automotive industry.

The Associated Press reports today that Japanese automakers, particularly Toyota and Nissan, reported “generally solid growth” in global production and exports last month, powered by high demand in Asia and emerging markets.

Excerpts of the AP report:

Toyota Motor Corp. said overall global production rose 3.6 percent from the previous year to 805,948 vehicles on strong output in Asia.

Toyota’s overseas production gained 4.3 percent to 400,749 vehicles, while production in Japan expanded 2.9 percent to 405,199 units.

The company said its exports from Japan advanced slightly to 221,396 vehicles — the eighth consecutive month of increase — mainly due to shipments to Asia and Oceania.

Continue reading ‘Nissan, Toyota post global growth’

Here’s this interesting bit o’ news, courtesy of Jimmy Smith of Ripley. Our thanks for his submission. But before you get your hopes up about ditching the gas pump, read this story that says the car is too good to be true.

A Japanese venture company, Genepax, has unveiled a car on that runs on water. All it requires is a litre of water. In fact, any kind of water to be exact, whether its river, rain, sea water, or even Japanese tea. Its an electric powered car that runs solely on hydrogen dioxide.

“The main characteristic of this car is that no external input is needed. The car will continue to run as long as you have a bottle of water inside for you to add from time to time,” said Kiyoshi Hirasawa, Chief Executive Officer of Genepax, after he proudly announced the company’s invention.

Continue reading ‘Car that runs on … water’

Toyota Motor Co.’s plans this year to exceed its vehicle sales of 2.62 million in the United States last year may not happen.
The company said today that the continuing economic slowdown in the U.S., coupled with high gas prices, may force it to lower its forecast.
Toyota’s board will meet next month to update its 2008 plan.

From the Associated Press:

The world’s No. 2 automaker announced in December that it was hoping to sell 2.64 million vehicles in the U.S. in 2008 and predicted a 5 percent jump in global sales to 9.85 million vehicles because of strong sales in emerging markets such as China and Russia.

Through the first half of June, total auto sales in the U.S. were running at an annualized rate of about 12.5 million vehicles, according to J.D. Power & Associates. It was the lowest level for June in decades and a huge drop from the year-earlier rate of 16.3 million vehicles.

Continue reading ‘Toyota may not hit U.S. sales goal’

Toyota doesn’t have any plans to tuck tail and run, says Toyota Motor Manufacturing Mississippi spokeswoman Lacy Luckett. She was the guest speaker at Wednesday’s Networking at Noon event (full story) and one of her first comments was:

“Contrary to all those rumors out there, we are coming.”

Questions have come up concerning the future of the plant as the economy stumbles and many auto makers scale back production. Toyota is building a $1.3 billion plant near Blue Springs that will manufacture the Highlanders, the company’s best-selling sport utility vehicle.

Other info and quotes related to the economy from the presentation:

• The start of production is slated for 2010, instead of late 2009, as reported first by the Daily Journal.
• The plant will be able to manufacture 150,000 Highlanders each year. Toyota will start with a 120,000 annual goal when the plant opens. “As the economy turns around, that’s easily ramped up to get us back up to production,” Luckett said.
• Kerry Stepter, the plant’s manager of HR, safety and general affairs, said the plant will start with one 8-hour shift of line production workers. And, “based on the market,” Toyota will decide when to start a second shift.
• Luckett about the suppliers for TMMMS: “As of today, we don’t know of any changes here. Who knows with the economy the way it is the changes we’ll see in the future.”

The Detroit Press has obtained a memo from Chrysler Chairman and CEO Bob Nardelli, who says sales of the automaker are about 20 percent worse than expectations.

According to the paper:

Nardelli didn’t indicate or threaten any job or production cuts like those under way at rivals, but experts saw the message as an ominous sign that the privately held automaker may have to do more.

Nardelli attributed the dramatic market drop to a number of economic factors, including a plunge in new-home construction, weak consumer confidence, automotive loan defaults and high oil costs.
“We have great vehicles to sell,” Nardelli said. “And keep talking up our products to your family, friends and neighbors.”

Remember, this is the guy who nearly ran The Home Depot into the ground.