US Yaris to be imported from France ?

[tk-421]

Originally Posted by nookandcrannycar

I can think of two possibilities---1. Availability, and 2. Transportation Costs (and how the transportation costs might effect the overall production cost). In the U.S. (as was promoted to the general public nationwide during the financial crisis) auto makers share suppliers. If this practice is similar in another 'outside Japan' market, then Toyota would likely not be at a competitive disadvantage to other manufacturers re what was being produced within that market.

Regarding availability of raw materials, I can safely state that some of the countries that a few people here are having problems with have a huge advantage over some of the more established "car making countries". I'm not going to go into details here, but 5 mins. spent on Wikipedia will give anyone a good enough idea of how raw materials are distributed around the world. Mexico, for example, has ample amounts of pretty much everything that's needed to build a car from scratch, whereas Japan tends to have a bit of a harder time getting everything together (which is why is costs more to build a Prius than a Hummer).

Regarding transportation costs, I would think that moving an entire production line to Mexico to cater to the US and Canada markets would be a huge plus as well, considering that it would be somewhat cheaper to move finished cars up the border instead of across the ocean.

Then again, they are going to be building cars in France and moving them across yet another ocean so, like you say, there must be other factors at play...

Originally Posted by nookandcrannycar

The illustration you make in the 'Think about it' section of your post makes sense (Economy of Scale), but it only makes sense in a naked way if the other related costs are the same....and they may or may not be depending on the location.

I think keeping costs low is only part of the equation. Keeping current customers loyal and gaining new ones is of crucial importance as well. But if I were to boil it all down to one word, it would be this: Consistency. It is unequivocally the most important thing for any company in any market. You have to hit as many high marks with as little money as you possibly can, and you have to do it reliably enough.

In my opinion, Toyota has been very consistent over the years, and I would think they would rather perform mass-harakiri before they started gambling with something that takes so much time and dedication to earn. If they're willing to move entire factories (and thus deprive their local population of jobs), I'm pretty sure it's for very good reasons (i.e. there has to be some advantage to building cars on areas that don't have earthquakes every 5 minutes).

I guess that's basically why I'm being so stubborn about this. That and my general faith in people, no matter where they sprouted from. Sure, there are many bad apples out there, but I think most people mean to do good (as in good products, good deeds, etc) if they're given a fair shake. And that's what consistency is all about, right?

Originally Posted by Flipper_1938

The french don't have a good track record of building anything great.