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Toyota to move Yaris N American production to France

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Analysts said the move, announced by Toyota late on Friday, is aimed at keeping a strong yen and soaring energy costs from affecting its earnings. Other Japanese automakers have also shifted some export production out of Japan.

So, eventually it is clear: saying that insufficient production of energy and higher energy prices would have a direct negative impact on the economy was not just scaremongering. Economy was more important that people, huh? Now, how about the people who have lost or will lose their livelihoods because the car producers are moving factories overseas?

It seems that the high energy costs and the energy policy deadlock were the last drop (added to high corporate taxes (40%) and the strong yen) which made the cup run over.

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JaneMJun. 25, 2012 - 11:10AM JST

So, eventually it is clear: saying that insufficient production of energy and higher energy prices would have a direct negative impact on the economy was not just scaremongering.

Believe it or not, it actually costs more money for a factory to shut down two hours a day rather than have it operate throughout it's entire shift. These factories work with a system called just-in-time manufacturing, which means they have almost no inventories to keep costs down. The down side is that disruption on any production line or transportation route can shut the entire system down. And those shutdowns mean a lot of lost money and lost production time, since the time multiplies per part.

The economic losses will be staggering, and perhaps suicides due to lost jobs will be noticeable as well. Japan needs cheap energy and government reduction or it will become the next Greece. Car makers moving out is the first sign, and the fact they went to fairly expensive France (fairly high corporate taxes and very high labor costs) means that there are serious issues with Japan right now.

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America want's Hybrid cars... You don't need a PHD to know this... Jump ahead of the competition. Gas is out! Electric is in! America is bankrupted! Make a wise decision and adjust your thinking. Make Hybrid Cars!!!!!!!!!!!!

-3 ( +2 / -5 )

Basroil,

I hear you. However, these facts will are bound to fall on deaf ears here.

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I wonder if this will result in more unemployment for American auto workers. Back in the late 1960s, when Detroit poo-bahs scorned Japanese cars as "shit-boxes" (and prohibited drivers from parking them in Motor City parking lots, believe it or not) the idea that Japanese manufacturers would someday become the largest employer of auto workers was ridiculous, unimaginable.

Good luck with the spoilt and union-ridden European workers too. French auto workers, my God. But Japanese management doggedly perseveres, maintains quality, holds costs down - they are indeed amazing.

Actually I miss some of the older names. How about the Mitsubishi Debonair (corny early 50s design)? Or the Nissan Cedric (monocle firmly screwed in eye, rich received accent, old school tie). When I was in Japan Honda introduced a cute little car with commercials showing young guys prancing around going "Honda Shitty! Shitty! Shitty!" Geez, the car's not that bad, I thought to myself...(Honda City actually...)

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So, eventually it is clear: saying that insufficient production of energy and higher energy prices would have a direct negative impact on the economy was not just scaremongering

Who said it was scaremongering? I thought pretty much everyone knew it would have a direct, negative impact on the economy.

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basroil

Car makers moving out is the first sign,

Incorrect its the final nail, the coffin is built.

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I wonder if this will result in more unemployment for American auto workers.

This car is currently built in Japan for export to the US and production is being moved to France from Japan. Whether the quality suffers or not is open to question but the US buyers will perceive a loss of quality; French cars have never been a raging success in the US.

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Ouch, Toyota production leaving the motherland? Fallout from the various crises I see. I would have had them produced in America if they are for American markets, pretty sure I'd be cheaper than France.

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OMGhontoni

When Noda said that it was necessary to restart the reactors to support the livelihoods of people (in addition to a few other reasons) and when some forumers stated that, among other things, jobs would be lost because of insufficient electricity supply, they were jumped all over and said to be exaggerating and scaremongering.

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Make Hybrid Cars!!!!!!!!!!!!

Blech. Seriously. You want one, you drive one. Want automatic transmission, hundreds of pounds of batteries? Enjoy it then.

Not everyone does. Without gov't subsidies, hardly anyone would buy, when you never really break even, with high car payments and a high cost of gas.

Today's Civic is a whale compared to say '89, when the Accord was that size if not a little smaller. I guess people's tastes change, but where is simplicity when you really need it. You can get 50MPG without a ****load of batteries if they build a reasonably light car. Power steering and a $600 radio are a little overrated. Intelligent climate control with twice the freon capacity, HID lights, thick plushy carpets and an oversized gas tank.... a little bit of this, a little bit of that, adds hundreds of lbs and thousands of dollars.

I don't need a high tech land yacht when a simpler, lighter car built with today's technology would be more fun to drive, simpler to repair and waste less energy to produce, just like it was already done 20, 30 years ago, before many of the current advances were made.

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Anthony LeeJun. 25, 2012 - 12:04PM JST

Ouch, Toyota production leaving the motherland? Fallout from the various crises I see. I would have had them produced in America if they are for American markets, pretty sure I'd be cheaper than France.

The Camery is already made in the US for US and European markets, and the Yaris sells better in Europe and Japan than NA. It is cheaper for them to shift production to an existing Yaris manufacturing chain than to build a new one or retrofit an entirely different chain.

The fallout is likely mainly due to power issues, and then raising taxes after that.

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T-MackJun. 25, 2012 - 11:30AM JST

America want's Hybrid cars... You don't need a PHD to know this... Jump ahead of the competition. Gas is out! Electric is in! America is bankrupted! Make a wise decision and adjust your thinking. Make Hybrid Cars!!!!!!!!!!!!

Actually, market demand in America is still mainly trucks (which Toyota has been slow on), SUVs (of which Toyota builds quite a few), and then compact sedans/hatchbacks of which the Yaris is part of. Hybrid technologies have been slow on the uptake, especially here in Japan, since smaller engines typically get just as good or better fuel economy (typical small car here has 20kpl, or about 47 mpg (same as average for old style prius or new prius with 20/80 city/highway). Some small engine cars even get 30kpl, or about 70 mpg (closing in on electric vehicle territory).

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Frankly, I expected the Yaris to die a noisy death in North America. "Noisy" because you can't get away from the inane internet ads for the car. ("The Yaris has cupholders - STANDARD! They're cups... for your cups!") And let's not ignore Toyota's riveting tag-line that their management decided to apply to the Yaris: "It's a car!"

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If they were going to move production out of Japan, I'm surprised they didn't move it straight to the U.S. France? Really?

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If they were going to move production out of Japan, I'm surprised they didn't move it straight to the U.S. France? Really?

They probably figured they'd help out the Euro rather than the dollar with the move. The Euro is only 1.25 dollars. I remember when the Euro was over 2 dollars.

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Toyota Yaris is Positioning at the heart of the small car market in Europe. Compare to current U.S. version of Yaris with 1.5 litre gas power engine, the new French made Yaris will have 1.0 litre three cylinder engine, 1.3 four cylinder engine, and a 1.4 Turbo Diesel engine. These engines might be too small for U.S. market but it would be ideal for Toyota to target European market where gas and diesel fuel is expensive. In the U.S. market, Toyota has the Corolla with 1.8 litre engine and Camry with 2.5 litre engine. Yaris does not sell that well compare to Corolla or Camry in the states.

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I don't think a Japanese car made in France will go over very well in the US. What Toyota really needs to do is stop making cars out of metal and start making them out of carbon fiber. But you need imagination for that and all car makers seem to lack that.

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ka_chan Jun. 26, 2012 - 06:16AM JST. What Toyota really needs to do is stop making cars out of metal and start making them out of carbon fiber.

It's all economics. Carbon fiber is significantly more expensive than steel, but its lower weight becomes important in trying to make a car as fuel-efficient as possible.

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sfjp330Jun. 26, 2012 - 06:31AM JST

It's all economics. Carbon fiber is significantly more expensive than steel, but its lower weight becomes important in trying to make a car as fuel-efficient as possible.

Not only more expensive, a very limited supply is available, very hard to manufacture, requires special tools, resins used are toxic for workers, etc. And light car doesn't mean fuel efficient, once you are too light, you get into issues like wheel slipping and easy roll over. Why do you think carbon fiber F1 cars have upside-down wings? It sure isn't to reduce drag or have better fuel economy.

Toyota and other companies have already made cars as cheap as possible without sacrificing too much safety. Their only remaining options for reducing costs are reducing labor costs and taxes. Both can't be done in Japan anymore.

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*REMzzz: You can get 50MPG without a ***load of batteries if they build a reasonably light car.

Yes. And a lot of hybrids are being purchased here in the US by people who don't understand that they get their high efficiency because of the regenerative braking. If they're driving at constant speeds (like on highways) instead of stop-and-go traffic, they're shocked that their mileage isn't nearly as good as the manufacturer's claims.

You want to see efficient car owners who are intelligent here? Look at the ones driving the Honda Fit.

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basroil Jun. 26, 2012 - 11:54AM JST. Not only more expensive, a very limited supply is available, very hard to manufacture, requires special tools, resins used are toxic for workers, etc. And light car doesn't mean fuel efficient, once you are too light, you get into issues like wheel slipping and easy roll over. Why do you think carbon fiber F1 cars have upside-down wings? It sure isn't to reduce drag or have better fuel economy.

And why are you comparing a 650kg (1300lb) F1 race cars to a compact cars like Yaris? Light cars doesn't mean fuel efficient???? You tell Ford that. Ford Motor Co. is already partnering with Dow Automotive Systems to research the use of advanced carbon fiber composites in high-volume vehicles. The reason is simple: Ford needs to cut vehicle weight by some 750 pounds by the end of the decade not only to meet impending fuel economy rules. Vehicle weight reduction with a focus on carbon materials is a priority. To make the use of carbon fiber feasible in high-volume automotive production, Dow and Ford plan on focusing on establishing an economical source of automotive-grade carbon fiber for high-volume vehicle production applications.

As we all know, light and heavy vehicle manufacturers alike are facing the imposition of fuel economy mandates that’s forcing all sorts of changes upon their car and truck product changes affecting everything from engine displacement, tires, even the very materials used to construct chassis and body components. One such change involves greater use of carbon fiber material composites. That weight reduction translates, of course, into fuel economy improvements (ah ha!), which are so vital for light and heavy-duty vehicle manufactures alike due to new federal fuel efficiency mandates.

Up to now, steel has mainly been the material of choice for cars and trucks because of its strength and low cost. Yet the weight of steel is why many manufacturers started using aluminum, fiberglass, even some plastic components, in the construction of their vehicles. The reason carbon fiber composites are so attractive is that they weigh about one-fifth as much as steel, but can be comparable or better in terms of stiffness and strength depending on fiber grade and orientation. Perhaps most importantly, the carbon fiber composites could reduce vehicle weight by as much as 60%, thus significantly increasing vehicle fuel economy.

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More jobs lost from Japan and the lack of electric is partly to blame. The jiji and baba can only see the bottom line and their greed will be the downfall of Japan. Soon there will only be the rich and a lot of poor people. At this rate Japan is headed to be a 3rd world country. Without resources and greedy business people, we are doomed as a country. No jobs, no pensions equals poverty.

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