Misfortunes force Toyota towards the American dream 1

Reports from America have quite positive regarding Toyota, the world’s largest automotive manufacturer.

Yen getting stronger

Shifting production and moving operations to America isn’t an easy process to carry out. It could be forced upon the company as Japan’s currency value has recently become a lot stronger. Recently the Yen has gained 9% + over the American dollar. What does this mean? When the Yen is strong, overseas operation profits are low.

Akio Toyoda is clearly worried about the situation saying” If the yen continues to stay strong, Toyota will collapse,”

The U.S a good option

The company have been falling behind recently and allowing Volkswagen to close the gap. This is mainly due to operations in Japan hitting many stumbling blocks due to the recent natural disasters which have hit the country.

Toyota appears to be making amends for lost profits and focusing heavily on the American market.  A large amount of Toyota’s production will be shifted to the USA if proposals are to go through. The company are hoping to shift a greater focus on exports rather than sales in Japan, which look like they have a long time until they reach full recovery.

CEO and President of Toyota, Akio Toyoda, said that there is a high possibility that moving production to America. He said “If demand in Japan recovers, we will continue and work to maintain production of 3 million units. If most of it becomes exports, shifting a significant amount of production to the U.S. may be considered.”

Thailand floods

Japan was not the only market to dent Toyota operations. Unfortunately floods in Thailand also had a damaging effect on business for the Japanese automotive giants. Jim Lentz, the Head of Toyota Sales said that the company are getting over negative effects on business. “Early on, we didn’t know how bad it could be, but it ended up being a false start,”

“Whatever impact it had is behind us.”

It appears that almost everything is going against Toyota at the moment. Something clearly needs to be done if they to remain the world’s number one car manufacturer. Some have said that Volkswagen, who plan to overtake the company by 2018, may do so by the end of the year.