Appreciation of the yen makes Toyota Motor exports further decline

In the evening of June 21st, Beijing time, in the context of the current strong appreciation of the Japanese yen, Japan’s number one car maker Toyota Motors is trying to take various measures to deal with it, because the appreciation of the yen has made Toyota's profitability space for exports to drop . On Tuesday, a senior Toyota official stated that Toyota is currently planning to cut its production costs by 20%. It is understood that Toyota had said earlier that once the yen exchange rate against the US dollar fell below 90, it would not be able to achieve export earnings.

Atsushi Niimi, vice president of Toyota, said: "If we cut the production cost of the car by nearly 20%, then we can ensure that the yen will reach a breakeven if the yen exchange rate against the dollar reaches 80."

For Toyota Motors, the negative impact of the yen’s rising to a record high is particularly pronounced because half of the cars that Toyota sells worldwide are manufactured in the Japanese domestic market. The proportion of Toyota's competitors Honda Motors and Nissan Motors is 25%.

Sakai Dun said that Toyota Motor Corp plans to increase imports of auto parts from China and assign low-value-added parts to joint ventures in China.

At present, Toyota Motor has accelerated the production of automobiles, aiming to get out of the adverse impact of the earthquake as soon as possible. Last week, Toyoda President Toyoda said Toyota’s overseas and domestic factories will return to normal in July this year.