Toyota -- Yen too High? Build Cars Destined For the US in Europe Instead!

[xcel]

Yaris is the first on the docket to move from Japanese production to France for importation back into the US.

Wayne Gerdes - CleanMPG - Jun 22, 2012

2012 Toyota Yaris - $14,115 to start and a 30/38 mpgUS city/highway rating.

Toyota had an interesting PR stating that beginning in May of 2013, Toyota France will start building the Toyota Yaris for export to the US, Canada and Puerto Rico. The annual export volume is planned to be a small 25,000 units.

Since mid 2007, the Yen has appreciated over 65% against the $USD and can be attributed to Japan’s reduction is US Bond purchases to offset their imports and resulting repatriation of Yen vs. Dollar holdings. While that decision is admirable and one I would do as well, there are back end consequences and an appreciating currency is one of those results making export manufacturing a tough sell in this day of razor thin profits in the automobile industry.

Building the Yaris in France for North American’s will include a minor investment of $10 Million USD at Toyota Motor Manufacturing France (TMMF) to build the car to our specific US requirements including the 1.5L engine, automatic transmission, more robust crash test rear bumper and other items linked to specific local regulations.

Toyota is saying we will unfortunately not receive the 1.4L D4D Turbo Diesel or the 1.3L optimal drive engine a taller ratio’ed stick variants

The current generation Toyota Yaris was launched in Europe in the summer of 2011, followed by the Toyota Yaris Hybrid in June 2012.

A few more tidbits on the Yaris and Yaris Hybrid both in the US and France follow:

• So what’s New about the All-New 2012 Toyota Yaris?
  
• 2012 Toyota Yaris in Full Color
  
• 2012 US Yaris Pricing Released
  
• Yaris Hybrid Production Begins in France
  
• 2012 Yaris – Most of Which Is Headed Our Way

[AshenGrey]

The U.S. Dollar will be utterly worthless in a few years. Will that cause other countries to send manufacturing jobs to the United States? America could use the jobs.

[ALS]

Originally Posted by AshenGrey

The U.S. Dollar will be utterly worthless in a few years. Will that cause other countries to send manufacturing jobs to the United States? America could use the jobs.

The Euro is in far worse shape than the dollar. Greece is toast, Spain is toast, Portugal is toast and Italy is hanging on by a thread. With the election of President Hollande and the far left Socialist to the National Assembly and the Senate, I give France five years at most before it runs out of money.

Toyota should be building that factory in the southern U.S.

Unless they realize the Euro is going the way of the dinosaurs, and realize that many of these European countries are going to see a major devaluation of their replacement currencies.

[herm]

European capital is fleeing to the US, thus Toyota can make money making cars in France, for a small investment.. and that is amazing if you know anything about french manufacturers

[Carcus]

If the euro fails, it will most likely bring the dollar crashing down as well.

(and we will not have heard the last of credit default swaps)


"Five large American banks, including JPMorgan Chase and Goldman Sachs, have more than $80 billion of exposure to Italy, Spain, Portugal, Ireland and Greece, the most economically stressed nations in the euro currency zone, according to a New York Times analysis of the banks’ financial disclosures. But these banks have made extensive use of a type of financial insurance, the credit-default swap........"

U.S. Banks Tally Their Exposure to Europe’s Debt Maelstrom
http://dealbook.nytimes.com/2012/01/...ebt-maelstrom/

[ItsNotAboutTheMoney]

Originally Posted by ALS

Toyota should be building that factory in the southern U.S.

Unless they realize the Euro is going the way of the dinosaurs, and realize that many of these European countries are going to see a major devaluation of their replacement currencies.

They don't have to and won't build anything. European plants, like Valenciennes, will have significant spare capacity for the next 5 years at least. Any vehicles they'll be importing into the USA will be low volume ones like the Yaris.

If it allows them to lower the price it might help sales a bit, but not to the level that they'd produce it in the USA. Cutting out the Japanese Yaris production would also free up some space there for cars displaced from Iwate by the Aqua/Prius c.

The next major Toyota addition to the USA should be the Gen 4 Prius liftback.

[Indigo]

Originally Posted by ItsNotAboutTheMoney

They don't have to and won't build anything. European plants, like Valenciennes, will have significant spare capacity for the next 5 years at least. Any vehicles they'll be importing into the USA will be low volume ones like the Yaris.

If it allows them to lower the price it might help sales a bit, but not to the level that they'd produce it in the USA. Cutting out the Japanese Yaris production would also free up some space there for cars displaced from Iwate by the Aqua/Prius c.

The next major Toyota addition to the USA should be the Gen 4 Prius liftback.

After three years of the utterly bogus "Recovery", it's pretty obvious that the Corporate Masters never intend to ever hire Americans for anything except minimum-wage Wall Mart jobs. I don't know who they think will be buying cars when the jobs pay $7.25/hour and a lpaf of bread is $3.00.

[CRT1]

Originally Posted by Carcus

If the euro fails, it will most likely bring the dollar crashing down as well.

I highly doubt it. The FED will bail out US banks (again) and there will be a "flight to safety" (again). The money leaving Eurozone investments would have to go somewhere and the BRICs can only take so much. Even though the long term outlook on US debt is dubious at best, it will still be the best of the worst in terms of short term safety.

[herm]

Originally Posted by Indigo

I don't know who they think will be buying cars when the jobs pay $7.25/hour and a lpaf of bread is $3.00.

Thats the whole point, THEY dont want you driving and congesting up the highways. Look at all the people pushing bicycles and mass transit.. then follow the money. The only practical way is too keep wages down and cars expensive.

Look at all the auto journos pushing soft dash plastics, follow the money.

There are just too many people in the world for all of them to have a car.

Sorry Indigo, I should not be poking you with a stick

[EdwinTheMagnificent]

I still don't understand what's wrong with the old "hard" dash plastic. Maybe I'm a tard.