Toyota will produce more cars in the state
To make a profit, Toyota is learning that it must have more factories in America. Toyota has used Japan to export for years, but now all of that must change, as Toyota’s financial results show that the export bases are not sustainable, not even for Toyota.
Toyota took a big hit in the last fiscal year as sales went from a staggering $ 28 billion profit to losses. The $ 28 billion change was due in part to the company’s own apathy. Toyota has relied on imports much more than its main competitors. Toyota has calmed down on earnings and favorable dollar-yen exchange rates on exports, but now exchange rates have swung against Toyota. To be profitable, Toyota will have to reduce its foreign exchange exposure across the sea and start building cars where the vehicles are sold, which means more factories in the United States.
Last year, Toyota exported 60 percent of all vehicles made in Japan and 45.1 percent of all Toyota sales in the United States last year were imports. It is completely unrealistic for Toyota to think that exports can be maintained at current levels. When the auto industry and car sales declined dramatically, Toyota planned to build the Prius in Mississippi in a new factory.
Building the car in Mississippi should help Toyota work toward more assembly plants in the United States. Akio Toyoda, the grandson of the company’s founder, took office in June and promised that Toyota was going to have a new change, including increased production in North America.
