Plagued by a strong yen that is making it increasingly difficult to produce cars in the home market, Japanese giant Toyota Motor Co. may shift production of more of its popular Camry sedans to the U.S.
Toyota plants in North America already provide the majority of the vehicles the maker sells in the U.S. and Canada, notably including the 25-year-old Camry factory in Georgetown, Kentucky. But, according to the Nikkei business daily, such a move – not yet confirmed by Toyota – would be used to supply the Camry to South Korean Toyota dealers.
Japanese makers, in general, have been struggling to deal with production at home with exchange rates slashing their profitability. Makers like Toyota had, until recently, been hoping the yen would stabilize at or just above 80 to the dollar, but in recent weeks it has soared to a record high of 75.94.
That is making it increasingly unprofitable to ship vehicles not only to the States but to other countries that tend to peg their own currencies to the American dollar.