Toyota is moving quickly to cut their production costs for their Yaris and Corolla vehicles as the Japanese Yen reaches nearly a 15 high rate against the U.S. dollar. This rise in the yen could lead to a big lost in building their economy cars for shipments overseas.
Per Toyota’s Atsushi Niimi Toyotas executive vice president for their global manufacturing they are working extremely hard and as quickly as possible to keep up the appeal for their vehicles, however, given the current exchange rate it would not be possible for Toyota to export their Corolla’s or Yaris models.
Japanese car makers are struggling with this situation and are currently searching for ideas to bring their production shifts out of Japan especially with their small compact cars because those are the vehicles that are the most vulnerable amidst economic crises.
Right now, Honda Motor Company is the highest seller for their North American built automobiles amongst all of the Asian automakers. Nissan Motor Company’s import sales have grown 19 percent since July which is now the second highest in volume.
So, for the moment Toyota will continue to focus on their productivity improvements as their Japanese plants try to compensate the exchange rate issues.
Currently, Toyota is producing their Corollas out of Canada and they export more of their compact cars to the United States from that location. Toyota recently closed their California join venture plant in April of this year. However, the Blue Springs, Mississippi plant that has been planned to open in September of 2011 will continue assembling the Corolla Model.
Toyota plans to start producing their Prius hybrid model in Thailand but at this time that strategy is still in the works per a Tokyo spokes person for Toyota.
Right now where the exchange rate stands the Japanese economy overall is having to come up with a production structure which supports 85 yen to the U.S. dollar and that is a sure sign for disaster.
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