Honda, Nissan, Toyota Set Production Record Against Weakening Yen
As the yen weakened against the dollar for a second consecutive year, Honda, Nissan and Toyota all set production records in their North American plants in 2013, according to Automotive News.
Outputs for the trio last year include 1.86 million units for Toyota, 1.78 million for Honda, and 1.47 million for Nissan, though gains on the production line didn’t match sales in the United States. However, exports took up the slack in U.S. showrooms, with more units sent to growing markets such as South Korea, Saudi Arabia and Latin America.
As far as individual models are concerned, Honda built 466,695 Accords at their Marysville, Ohio plant in 2013, around 20,000 more than the number of Camrys Toyota workers at the automaker’s Georgetown, Ky. plant.
The Japanese Three expanded their presence in North America as insulation against a falling yen, which fell 17.6 percent against the dollar in 2013 after falling 11 percent in 2012, as well as protection from overseas production disruptions that could affect North American output. In fact, Honda will soon open a plant in Celaya, Mexico to build the Fit, with the long-awaited 2015 NSX to be assembled in an experimental plant in Marysville.
Regarding Hyundai and Kia, the two South Korean automakers set a few records of their own in North America, including 399,495 Sonatas and Elantras leaving Hyundai’s Montgomery, Ala. plant, and 105,647 Santa Fes rolling out of the Kia line in West Point, Ga.
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Just another example of the complexity behind making longer term decisions such as where to invest capital dollars. 2 1/2 years ago the Canadian dollar was at 1.06 to the US. Yesterday is dipped below 90 cents....on a vehicle with thin nominal margins, this represents a huge change positive or negative in unit profitability. Would keep me awake at nights if I was a CFO
According to some people around here that shall remain nameless (BAFO, SPaM, etc), it's the Chicken tax that has Japanese OEMs building trucks in the American south, including Tijuana.
This trend is 30 years overdue, since the Plaza Accord was signed in 1985. US-Japan will become better trade partners and allies when we agree to balance trade. The most important waypoint on the horizon is Toyota's Prius plant in Mississippi. When it finally opens, auto imports and oil imports will both decline, and the US dollar will strengthen. Export-dependent economies will stabilize, and the race to the bottom will cease.
"The Japanese Three expanded their presence in North America as insulation against a falling yen" I'm confused, wouldn't a falling yen make exports from Japan cheaper?