Toyota Motor Corp. CEO warned again about the strong yen, and that the Japanese auto industry is in great danger of collapse, the Mainichi Shimbun has reported.
In an interview with the newspaper, Toyota Motor Corp. President Akio Toyoda said that it (Toyota) will be forced to leave the country.
“The entire auto industry has begun to collapse”.
To be competitive globally, it is important to be in a position where you can develop the newest technologies. If (we are) no longer able to develop the latest technologies, (we will) have no choice but to leave” the country, he said.
The yen is still far too strong for its exporters’ liking, and it is making Japan a very hard place to turn corporate profits, an industry analyst said.
It’s certainly true that the yen is at levels to make Japanese exporters blanche. A year ago, a dollar bought ¥84; in early 2007, it bought ¥120.
The Japanese automaker said it will do all it can to cut costs and to stick to its stated policy of producing at least 3 million units domestically.
However, Toyota will move some of its production in Europe and US. Japan’s largest automaker will invest €265 million ($354 million) into its existing plants in Turkey and the UK. 1,900 new jobs will be created, 400 in Turkey, 1,500 in the UK.
Currently 550 cars a day are made at the plant, with 137,000 rolling off the production line last year.
In late October, the U.S. dollar dropped to a record low of 75.31 yen, leading to currency intervention by Japanese authorities.