Monday, 17th January 2011
In Business In Japan,
Toyota warns about yen impact
Automaker Toyota has warned that the company could move production outside of Japan if the yen remains strong.
Akio Toyoda, president of Toyota, explained that it may become necessary to review current production plans if the strong currency has a further financial impact on results.
A statement from Mr Toyoda said: "If profits cannot be achieved, then we have no choice but to realistically consider the option of shifting production."
The company is also set in April to reveal a new plan to revamp the company's management structure and tackle the recent damage to the firm's brand image due to worldwide safety recalls.
Toyota is currently the world's largest automaker and has a significant market share both inside and outside Japan. However, the falling dollar and the strong yen have meant a downturn in export earnings as consumers opt for cheaper vehicles.
Meanwhile, Toyota could be facing a lengthy legal battle in the US as lawsuits concerning sudden acceleration could take two years to come to court.
Written by Susan Ballion.
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Toyota comes under further recall criticism (21st May 2010)
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