Much of IMT‘s coverage surrounding the domestic U.S. car industry has rightly painted a bleak picture — not only regarding Ford’s missteps, but also the general lack of excitement and demand toward most U.S autos. Now comes word that Toyota has its sights set on building its eighth assembly plant in the U.S. More global car trouble for domestic automakers?

As first reported in The Wall Street Journal, Toyota is considering three to five U.S. locations for its new assembly plant, including Tennessee, Arkansas and North Carolina. Not only would the new plant bring Toyota’s U.S. car manufacturing tally from 1.5 million to 2.2 million, it will also produce the “next-generation Toyota Highlander sport/utility vehicle and possibly a tall station wagon like the Chrysler Pacifica,” the Journal said.

Clearly, Toyota is striking while the opportunity is hot, not only by improving upon one of its own popular line of cars but also by going after a U.S. brand in the Pacifica. Forget the fact that Toyota is a fierce competitor; some say the automaker won the car battle several months ago. This news at least appears to be simply another nail thrust into the coffin of the U.S. auto industry. According to the Journal:

The move, which Toyota has been pondering for months, would show that Toyota will try to take more of the U.S. market from domestic rivals in the next several years, the Journal said. It also would strengthen Toyota’s hand if a backlash against non-U.S. brands arises from the increasing troubles of domestic automakers and their suppliers.

But perhaps the U.S. automakers have a few manufacturing tricks left up their sleeves after all. Manufacturing.net, for instance, picked up on an interesting bit of news that involves Chrysler picking manufacturing locations for its new Town & Country and Grand Caravan. Turns out, the new autos will be constructed at the company’s “flexible” manufacturing facility, the Windsor, located in Ontario, Canada. The following excerpt might even change a few minds regarding the sluggish manufacturing capabilities of the U.S.:

The Windsor location currently manufactures the Dodge Grand Caravan and Chrysler Town & Country minivans and the Chrysler Pacifica. It is capable of building two different vehicle platforms and piloting a third simultaneously on the same production line. The Windsor location recently made a $508 million investment for a new paint facility capable of accommodating the dimensions of 11 different body styles. The facility is scheduled to be operational in the first quarter of 2007.

Manufacturing.net also picked up on news that GM and Ford both set record sales in China, with 2006 totals being 31.8 percent higher than 2005. “Vehicle sales continued to outpace most projections as a result of unprecedented consumer demand for passenger cars,” said GM China Group President and Managing Director Kevin Wale. “While demand was particularly strong in the small car segment, nearly all passenger car segments experienced growth.”

Wale also said GM will invest an average of $1 billion annually through 2010 to keep pace with demand in China. Ford also has a $1 billion plus expansion plan, announced by Mr. Bill Ford himself in 2003, that is near completion. That plan involves the creation of Changan Ford Mazda Automobile’s Nanjing plant and Changan Ford Mazda Engine Co., both of which look to start production this year.

Certainly, this type of news adds another interesting wrinkle to the cutthroat automobile manufacturing industry. But the billion-dollar question is whether or not these types of strategic moves are enough to make the U.S. auto industry a viable force in the near and long-term. Well, some are already predicting that it isn’t enough and that the real turnaround for companies like Ford can be found with innovation.

A recent article from The Associated Press, for instance, takes an in-depth look at engineers’ re-design efforts of the Ford Focus and the Ford Five Hundred. Analysts who have seen the new Fords say the changes are good steps but may not be enough to fend off the competition.

Erich Merkle, director of forecasting for the auto consulting company IRN Inc. in Grand Rapids, said the new Focus still doesn’t look as modern as the Honda Civic, which he considers to be the gold standard for small cars.

”It’s a step forward, but it’s not a dramatic leap,” he said. ”Unfortunately, the competition is really moving forward in that segment.”