Someone needs to explain to Trump how Toyota actually makes money

Darnell ReidJan 08, 2017

Japanese officials have defended Toyota's contribution to the United States economy after Donald Trump threatened to impose a "big border tax" on the carmaker if it went ahead with plans to open a new plant in Mexico.

That's because, in contrast to his earlier automaker targets, US -based Ford and General Motors, Toyota is a more complicated case: it's a Japanese company with a North American subsidiary headquarters (in Plano), and the production bound for Mexico would be moving not from the United States, but from Canada.

The piece shares stories of Mexicans upset with decisions by Ford and Carrier, which recently announced investments in USA -based plants in lieu of planned investments in Mexico.

Toyota now exports less than 10 percent of the vehicles it makes in Mexico to the United States. "Toyota division year-end results include record sales of both RAV4 and Highlander along with Camry continuing its sales leadership as the number one selling passenger auto in America for the 15th consecutive year".

President-elect Donald Trump threatened Toyota Motor Corp. on Thursday not to build a new plant in Mexico. Against the backdrop, Japanese, U.S. and European automakers have plants in Mexico, and suppliers and other related businesses also operate there.

Ford, however, still plans to shift production of small cars to Mexico from MI.

"Throughout his campaign and now, after his election, Trump has made it crystal clear that he would prefer that manufactured goods made for Americans be manufactured in the United States", Nerad said.

"Toyota looks forward to collaborating with the Trump Administration to serve in the best interests of consumers and the automotive industry", the Japanese automaker said. The Mexican peso declined nearly a percent in response.After Ford, Mr. Trump targeted General Motors' plant in Mexico, saying GM needed to be taxed for certain versions of the Chevrolet Cruze small auto that it imports from Mexico to US dealers.

"Toyota has made investments and created jobs in the United States".

Trump's tweet was followed by Toyota shares dropping more than 3% in morning trade in Tokyo on Friday.

The $1 billion plant, meant to expand production of Toyota's Corolla line, was announced in April 2015 and is expected to open in 2019.

Toyota has not directly addressed Mr Trump's tweet, but said in a statement that production and employment in the U.S. will not decrease due to the Mexican plant.

A General Motors spokesperson confirmed to Fox News that the company imported 8,400 Cruze sedans a year ago to supplement USA production during the launch of the latest model, something it announced at the time, but insisted that it hasn't brought any more in since the fall.

Additionally, Toyota already began construction of the facility back in November.

Related Articles:

« Previous article
Next article »

Popular Pages

Everything The Celebs Will Eat At The Golden Globes On Sunday
OJ Simpson: American Crime Story" will be there, too-Cuba Gooding Jr., John Travolta, Sarah Paulson, Courtney B. In past year, Amazon has actually topped Netflix in award wins despite the latter racking up more nominations.

Razer's gaming laptop prototype has three huge fold-out screens
Razer described Project Valerie as a "revolutionary laptop [that] gives you easy access to three eye-popping 4K displays". From certain angles, Valerie looks a lot like the sleek Razer Blade Pro, which was announced in the fall of 2016.

The LG Smart InstaView is the First Amazon Alexa Refrigerator
Texting while driving is a risky epidemic, and Alexa may be one solution, especially as it grows in car-friendly capability. Ford said it plans to offer these Alexa-to-vehicle commands in more vehicles with SYNC Connect at a later date.

Hearts, intestines ripped out in Brazil prison massacre
It is allied with a local gang called the Family of the North, which authorities say was responsible for the riot in Manaus. Details were murky about the latest uprising that took place early on Friday in Roraima state's largest penitentiary.

Canadians reported safe after Florida airport shooting that left five dead
Travelers are also required to tell airline staff at the check-in desk about any weapons that are being transported. There were five people dead and a gunman who appeared to be acting alone has been arrested, say officials.

Why Michael Keaton says he turned down 'Batman Forever': The script 'sucked'
Batman Forever's Caped Crusader was played by Val Kilmer; he was replaced by George Clooney in 1997's Batman and Robin. Keaton said he attended "many meetings" over the film, and was "polite up to a point about things".

Fox News Moving Tucker Carlson to Megyn Kelly's Timeslot
Also, Carlson had only been in the 7 p.m. slot, vacated by Greta Van Susteren, since November. New year, new lineup! MacCallum recently signed a multi-year deal to remain with FNC.

Astronomers pinpoint location of fast radio burst from faint galaxy
Although the exact relationship between the duo remains unclear, it's likely that they're somehow interacting. These events were characterized by, as their name implies, a rapid, high-intensity burst of radio waves.

Samsung Enters Crowded Kaby Lake Gaming PC Fray With Odyssey Notebook Series
That's in part because the 17-inch model has a heftier 93 Wh battery (compared to the 15-inch model's 43 Wh version). Buying the flawless laptop can take months of research, as each person has a specific need that should be met.

Mexico Will Pay for the 'Great Wall' - Eventually
Other fence contractors are private: Cerrudo Services , Hal Hays , Kiewit , RMA Construction and Weston , among others. Trump claimed he needed to use congressionally appropriated funds to build "the Great Wall for [the] sake of speed".