Toyota Gave Old Robots New Tools to Reduce U.S. Camry Price 2 Percent
Toyota Motor Corp. was able to trim the U.S. price of its new Camry sedan about 2 percent from the previous version in part by re-using old assembly robots from its former joint-venture plant in California.
“A lot of the tooling is new, however the equipment isn’t,” Steve St. Angelo, executive vice president for North American manufacturing and engineering, said in an interview. “We used a lot of used equipment” from the now-closed New United Motor Manufacturing Inc. plant, or Nummi, he said.
The eight versions of the 2012 Camry that go on sale this month cost an average of $25,245.63, down $550.63 from the models they replace, based on prices released by Toyota in a statement on Aug. 23. The high-volume Camry LE’s price fell $200 and the XLE grade dropped $2,000, according to Bloomberg.
Toyota, Asia’s largest carmaker, is under pressure to trim costs and boost the appeal of models such as the top-selling Camry as Hyundai Motor Co. and Ford Motor Co. expand sales of competing midsize and compact cars. While the Camry remains the best-selling car in the U.S. this year, sales are down 7 percent through August. Deliveries of Ford’s midsize Fusion sedan are up 16 percent and Hyundai’s Sonata is up 22 percent.
“They couldn’t have tolerated a price increase for Camry in this market,” said Jim Hall, who runs automotive consulting firm 2953 Analytics Inc. in Birmingham, Michigan. “We’re basically still in a recession.”
Toyota’s North American plants are finding more savings by salvaging equipment no longer needed at some factories, St. Angelo said at the company’s automotive museum this week in Torrance, California.
In the case of the redesigned Camry, “we bought equipment from Nummi,” he said. “We used robots from Nummi,” said St. Angelo, who didn’t elaborate on how much that move saved.
“They were lucky there happened to be a plant closing with surplus equipment available when they were developing the new model,” said Hall. “They haven’t had that before.”
Nummi was the Fremont, California, plant Toyota shared with the former General Motors Corp., which abandoned the factory when it entered a U.S.-backed bankruptcy in 2009. That company emerged as General Motors Co. Toyota opted not to operate the factory alone and closed it last year.
Along with the production robots transferred to Toyota’s Georgetown, Kentucky, plant that makes most of the Camrys sold in North America, Nummi equipment was also acquired by Toyota’s San Antonio plant and by electric-car maker Tesla Motors Inc.
Tesla, which bought most of the former Nummi site, will begin building its battery-powered Model S sedan there next year. Toyota is also a shareholder of Tesla.
Toyota’s U.S. sales unit is also based in Torrance. The company’s American depositary receipts, representing two ordinary shares, rose $1.64, or 2.4 percent, to $71.21 at the 4:03 p.m. in New York Stock Exchange composite trading.
More Industry

Nebraska Rooftop Changes Hands
The Gregg Young Automotive Group has sold its second dealership to Janssen Auto Group, both in Plattsmouth, Neb.
Read More →
Penske Auto Group Deal a Record
The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.
Read More →
War Toll a Damper on Used Auto Prices
Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.
Read More →
Bridge the Maintenance Gap
With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.
Read More →
California Store Has New Owner
The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.
Read More →
BMW Plant Pursues Cleaner Energy
BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.
Read More →
Auto Affordability Inches Up
The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.
Read More →
Ohio Auto Group Under New Ownership
After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.
Read More →
RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →