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Toyota moves production to U.S. due to currency values


Reposted from Manufacturing Economy Daily

Toyota moves production to U.S. due to currency values

Bloomberg News (2/9, Ohnsman, Higgins) reports Toyota Motor “will end production of Highlander sport-utility vehicles in Japan, consolidating assembly of the model in” a factory in Princeton, Indiana.

The Detroit Free Press (2/9, Snavely) reports, “The decision allows Toyota to expand its North American production of Highlander by 50,000 and export it to other countries, including Russia and Australia.”

The AP (2/9) reports, “Toyota says it will invest $400 million in the factory to build 50,000 more Highlanders per year. The plant built more than 101,000 Highlanders” in 2011. “After the changes, Toyota will be able to build about 255,000 Highlanders a year in Princeton and in China. The Princeton plant in southern Indiana now employs nearly 4,000 people who make Sienna minivans and the Highlander and Sequoia SUVs.”

AFP (2/9) reports, “The firm cited better US market conditions and a drive to produce cars where they are sold. Japanese auto firms have had a rough couple of years, battered by supply chain disruptions caused by Thailand’s floods and the 2011 Japanese earthquake and tsunami. But they have also been hit by the record strength of the yen, which makes exports more expensive to foreign buyers.”

The Indianapolis Star (2/9) reports, “Production is expected to begin in late-2013, the Indiana Economic Development Commission said. Production will include a hybrid version. Indiana will provide Toyota up to $2.7 million in conditional tax credits and up to $200,000 in training grants based on job creation plans.”

Also covering the story are the Wall Street Journal (2/9, Bennett, Subscription Publication), Forbes (2/9, Maynard), AutoWeek (2/9, Chappell), Reuters (2/9, Seetharaman) and other media sources.


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