Toyota exports dropped 0

Today we bring a report about Toyota. Their export profits have dropped by a tremendous 6.39 per cent in 2011 when comparing exports in 2010.

In total exports equated to $805 million in 2011 for Toyota. 2010 saw export values hitting $860 million.

The Japan and Thailand disasters

The slowdown is all put down to the unfortunate natural disasters which saw an earthquake in Japan and floods across Thailand. If these factors were not present, many believe Toyota’s exports would have reached record highs.

Toyota now number three

This meant that Toyota is  not named as the world’s number one car producer. They were beaten by General Motors who were on top previously. Toyota finished below General Motors and Volkswagen to finish third in the final list. There has been no target set for this year following the great uncertainty following the natural disaster. Toyota are currently nowhere near reaching full recovery.

Localising parts

Toyota plan to localise car parts around the world as announced last year. Following this plan will help to drive the prices of Toyota models abroad as parts will be cheaper.

The strength of Yen has proven to be a huge stumbling block for the company. Profits are naturally lower as the Yen’s strength is increased. This is another justification for part production to be shifted. Production of cars itself in Europe, America and Mexico has also been touted. An auto parts manufacturing program for the company is part of the idea to help conquer the Yen.

At present Toyota consists of various auto part makers being dedicated to certain areas of Toyota’s global market for producing parts.

The Toyota Vios is one particular model which is to be heavily localised in the Philippines. At the moment the Toyota Vios along with the Toyota Innova has 20 to 25 per cent of localised material within. A Toyota spokesman said that the local content within will reach 40 per cent eventually. Naturally as mentioned earlier this would allow the car to arrive a cheaper price when being introduced on the market.

Local suppliers would also receive more business within dedicated export countries, helping to drive the worldwide automotive industry.

A huge number of recalls in recent years have not boded well with motorists and were another reason for the sudden slowdown in sales. Can Toyota revive themselves and become one of the world’s elite again?