JAPAN: Strong yen makes small car exports 'unfeasible'
The current strength of the yen makes it unprofitable for Toyota to export the Yaris or Corolla from Japan and the company is examining whether it could produce the Yaris profitably in the US where the car sells for about US$12,600, Atsushi Niimi, executive vice president for global manufacturing, told reporters in the US.
The yen is close to a 15-year high against the US dollar and has advanced 14% against the euro so far this year. The yen is up at least 3% against the world's 16 major currencies.
Toyota is the biggest exporter of vehicles to the US. “Given the current exchange-rate situation, it isn’t feasible, in terms of a business model, for us to produce Corolla or Yaris in Japan and export them,” Niimi said. “We’re working very hard to reduce costs to maintain the appeal of these cars.
“By way of technological innovation, we’d like to realise a high level of productivity, as well as a low amount of investment, so we can maintain a system where we can export some vehicles overseas,” he said, without elaborating.
Lots of readers this week for our very own Rob Golding's view of the future tenure of a certain well known automaker's CFO. If you missed it, here 'tis....
There would have been some popping of champagne corks at Honda HQ in Tokyo today after earlier reports were confirmed that the Fit - which most outside Japan and North America know as the Jazz - had t...
The Australian new vehicle market started the year with a solid January result albeit down slightly on last year due to a significant decrease in sales in the flood-ravaged state of Queensland....
New Zealand new vehicle sales "started on a positive note with both new passenger cars and commercial vehicles ahead on January 2010", said Perry Kerr, chief executive officer of the Motor Industry As...
A planned merger between Nippon Steel and Sumitomo Metal Industries would create the world's second largest steelmaker in an effort to fend off tough competition from Asian rivals and offset shrinking...
- THE WEEK THAT WAS: Chinese scoop up Pirelli
- ANALYSIS: Depressed Thai market forces rethink
- ANALYSIS: VW Group - success and succession
- Q&A with Victrex
- ANALYSIS: UK supplier industry perks up
- Jaguar Land Rover announces Whitley R&D expansion
- Jaguar unveils second generation XF in London
- New York show debuts: Scion iA added
- Tata's Jaguar Land Rover announces GBP 600m spend
- Carl-Peter Forster leads London black cabs company