TTAC Correspondents Debate: Why Does Toyota Buy Vans From PSA, Hiace Be Damned?
Yesterday, we talked about the odd occurrence of Toyota if not saving the hide of GM’s new partner PSA Peugeot Citroen, then at least keeping one of PSA’s plants from being closed. This by having vans made by PSA for the European market, instead of shipping them from Japan.
When we wrote that, TTAC correspondent th009 rightfully questioned why in the world does Toyota order a van from PSA if they have a Hiace. Correspondent felix offered the explanation that due to its “cab-over configuration, the Hiace won’t meet European frontal impact crash standards.” This sounded like a logical explanation, until from Finland, correspondent Perc offered a resounding “mitää???”, explaining that the Hiace has been a big success in Suomi. Finland has the same safety standards as all on Europe.
So, what is it then?
The Nikkei [sub] to the rescue. It’s the damned yen. Says the Nikkei:
“Toyota sells only about 10,000 small commercial vehicles a year in Europe, roughly 1% of the total sales in the region. With the strong yen eradicating any prospects for improving the business’ profitability, Toyota stopped exporting its Hiace, a small commercial van, from Japan to Europe last fall. Several potential partners were considered, but Toyota went with PSA, with which it makes small vehicles in the Czech Republic.”
So there you have it. PSAS’s Sevelnord plant was nearly shuttered because PSA’s current joint venture partner Fiat bailed. Toyota took Fiat’s place and most likely received a better deal than shipping Hiaces from strong yen Japan to low euro Europe.
And anyway, looking at the picture …
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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You are too kind on the miserable old tin box. Having to drive a Hiace for 20 years was a human rights violation.
Cool! Thanks for the clarification, Bertel, nvdw and th009. My bad. Didn't realize you were all talking about the Euro Hiace. Myself I'm only familiar with the Asian (and Japanese) version having driven a few of them of various generations. Cab-over configuration means tons of space in a small footprint. And a short wheelbase means a tight turning circle (as well as massive fore-aft pitching!). Not singling out the Hiace - all the cab-over vans I've experienced were just like that. Always felt vulnerable in them, as your feet are just a couple of inches behind the front bumper. In a hard collision, front occupants are likely to be trapped and have to be cut out. (When I say cut, I'm referring to sheetmetal, not limbs. But I wouldn't be surprised if the latter are involved sometimes.... yuck). Anyways, learned something new today. That's why I keep coming back. :)
I would have thought Toyota wants to manufacture in Europe because of the bad yen to euro exchange rate.
The Toyota kind of looks like an old Aerostar from the side.