Toyota Exports Expand – It’s All About The Weak Dollar
Tim Esterdahl | Dec 14, 2011 | Comments 5
Recently Toyota announced that it will be adding the Kentucky-built Camry to its growing list of vehicles it will be exporting to South Korea. This growth in exports, fueled by a weak U.S. dollar, means the thousands of American factory workers that Toyota employs will have increased job security and a stable income during a very difficult economy.
All of these exports add up to big growth in U.S. economic sectors like manufacturing, customer service and transportation. and they could even start a hiring boom. SO, the next time someone says that so-called “foreign” automakers are killing America, you can explain to them that not only is Toyota building cars in the USA – they’re exporting cars from the USA to other markets.
Toyota actually started exporting vehicles in 1988 and has seen their exports grow by 30 percent in 2010. The Camry joins the recently announced Sienna in going to South Korea. This growth has been helped by the fact that the U.S. dollar has fallen 11 percent through May 2011 when measured against a variety of major currencies (this, according to recent Harvard study).
How are exports and the falling dollar connected? Easy. American-made products cost our trade partners less to buy, which means that our cars are more cost competitive overseas…which means they’re easier to sell.
“We are pleased with the reaction that the redesigned Camry is receiving from our customers, and the sales success it is having in the U.S. and overseas,” said Yoshimi Inaba, president and COO of Toyota Motor North America, Inc. “The export of thousands of Camry vehicles to South Korea is an important development that builds on the great work of our talented U.S. team members as well as our extensive investments across North America to help maintain a strong, stable base of U.S. jobs. We look forward to other opportunities to continue growing exports from our American operations.”
Why is exporting a big deal? According to Harvard economist Martin Feldstein, even though only 10% of U.S. Gross Domestic Product comes from exports, export growth has driven more than a third of the increase in U.S. GDP over the past year.
Now if Toyota would just build all their products in the USA…
Filed Under: Auto News
Now that Toyota USA is exporting, can they officially be considered a “domestic” vehicle? Lol! 🙂
I have no issue with american made products being shipped overseas to sell. However, I frown highly on places like where I work that import 95% of their non-food products from China and sell them to US citizens for a 200+% profit where well over 50% of the products are junk in the first place. Frankly, products made in China are all over and sold in the US from all vendors. Makes me sick to even admit I work for a company like this.
Dez – Why not? LOL
mk – I hear what you’re saying. I honestly believe that we’re in the middle of a special point in time where it’s cheap to ship things halfway across the planet…as China’s cost of living comes up, the number of companies relying on imports will drop.
Then, if we assume energy costs will steadily increase (and they probably will until someone invents an alternative to fossil fuels), that will be yet another reason that importing goods just isn’t that cost effective.
Ditto for cars. 🙂
The dollar has been falling relative to other currencies, making buying imports more expensive in the U.S. On the other hand, it also means U.S. exports are more competitive around the world.
That shift could be good news for U.S. manufacturers, especially the auto industry.
Maybe the softening of the US dollar has come too late for Holden, but for those manufacturers with a long term future in USA 2014 could be a perfect time to dust off their export plans from a few years ago.