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Analysis Of Toyota Corporation

746 words - 3 pages

Exercise 4: Assessment of Toyota’s Current Regional Production Strategy; North America
During the 1960’s the United States began to place stiff taxes on imports which caused a stir among European automobile manufacturers. This heavily impacted their market. In order to manufacture cars locally and avoid U.S. import tariffs, Toyota built its first manufacturing facility in North America in 1972 in Long Beach, CA. Following in 1985, a second facility was erected and opened in Canada. It wasn’t until 1988 however that manufacturing facilities were built to both manufacture and sell cars. The first two facilities opened in 1988 and were located in Ontario, Canada, and Kentucky ...view middle of the document...

The United States has shown a drive to purchase and own vehicles based on quality. Since Toyota markets their cars to be high quality vehicles, and testing and reviews have proven this to be the case, the United States was a wise choice for the current automotive market. The market has done well, with financial statistics improving despite the setback experienced by Toyota in 2011. Another choice for Toyota manufacturing facilities is that of the Canadian locations. Canada experiences a much colder climate allowing for the building and testing of the Toyota products in the tougher climate. Although the Canadian economy remains at number 11 behind the US at number 1, it is still competitive and public transportation is not as vast as most countries in Europe. Opening the facility in Mexico was also a wise strategic move for Toyota to serve the vast Mexican population. While Toyota can still import vehicles into Mexico from the United States and Canada, the production costs in Mexico are much lower. Additionally,
vehicles manufactured by the Mexican facility can be imported into the United States and Canada tax-free through NAFTA, which makes another benefit of opening this new facility.
A potential drawback of a Mexican focus is that public...

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