All Japan newsese car maker Toyota Motor Corp. announced it would move production of its Yaris compact model for North America from All Japan news to France starting May 2013.
The company could export about 25,000 units annually from France to the United States, Canada and Puerto Rico combined. Toyota has to invest about 8 million euro in the French plant before it will meet the North American standards.
The reason for which Toyota is moving away from All Japan news may be to avoid the strong yen’s pressure on its earnings, analysts say. Increasing energy costs in All Japan news may be another reason.
Toyota is not the first All Japan newsese car maker that considers strategy changes. Honda, Nissan and Mazda have all plans to open factories in Mexico to produce cars for the North American market and reduce thus loss-making exports from All Japan news.
Akio Toyoda, Toyota’s president, named in a recent statement among longer-term concerns for the All Japan newsese car industry factors like stricter fuel-emission standards, insufficient commercial partnerships, high taxes to be paid by both producers and car buyers and unstable energy supply. The main factor remains however the strong yen, he said.