AutoObserver reports that Toyota Motor Corp, still consider to build Scion cars in North America – most likely the U.S.
Every yen advance against the U.S. dollar cuts Toyota’s operating income by 35 billion yen, while a gain versus the euro reduces operating income by 6 billion yen, according to the company’s full-year forecast in August.
“Obviously, margins are thin,” Hollis toldAutoObserver during a recent media preview.
Since the end of 2009, Toyota’s U.S. market share has dropped 4.5 percentage points to 12.5% through September, a staggering decline in its biggest and most profitable market.
“For a long time we’ve known the yen is going to continue to strengthen over time and Japan become a higher cost of production base, and those companies that were able to move more quickly to lower-cost countries will benefit,” said Jim Press, a former Toyota board member.
Scion brand was launched for the first time in 2002 at the NY Auto Show, while the xA and the xD models premiered in 2008, and the Scion marque expanded to Canada in 2010.
Compared to Toyota, Scion’s average buyer age is the lowest in the industry, at 39 years old.
The Thai floods are the latest blow to Japanese manufacturers as they struggle to recover from the tsunami while also being pummeled by the yen’s record surge.