"Everybody is trying to consider what are the ramifications and how we can optimize sourcing," Young said last week in an interview at Toyota's North American r&d center here.
As Toyota sorts out the supply chain, it also has delayed Guanajuato's production start to the first half of 2020 from July 2019.
Some suppliers may be able to stay in Mexico and find Tacoma contracts. Some may also be able to supply the Corolla by shipping parts to a new U.S. plant that is to start production in 2021.
Toyota announced plans Aug. 4 to jointly build a U.S. plant with Mazda. The automakers did not say what state would get the factory. But as part of the plan, Toyota said it was shifting the Corolla to the new plant to make room for more Tacoma production in Mexico.
"We have taken off our Corolla hats. We've put on our Tacoma hats. And we're rethinking the actual line layout, the footprint of the plant. We're also rethinking on-site suppliers, their appropriate location. All of that planning is under way right now," Young said.
Most of the 70 suppliers that agreed to back Toyota's Mexico plant could hedge their business because they supply automakers in addition to Toyota, Young said, without naming the parts makers.
Young said Toyota is looking at ways to maintain the eight suppliers that were to be on the plant site by finding work for them on the Tacoma. The outlook is especially cloudy for the fewer than five suppliers dedicated exclusively to supplying the Corolla.
"If you are only a Corolla supplier, it's an impact," Young said. "We may not have a short-term solution for them."
Corolla suppliers may be able to get work with the planned new U.S. plant, but that will likely mean scrapping plans to manufacture in Mexico, he said. And even if they win business at the new U.S. Corolla plant, they will have to wait until 2021.
Toyota is examining compensation for suppliers adversely affected, Young added.
He said the sudden shuffle of Toyota's production plans causes a lot of near-term inconvenience. But the shift, he said, opens room to quickly expand output of hot-selling trucks and will make the carmaker's North American production footprint stronger in the long run.
"It's short-term pain," he said, "for long-term gain."