Exclusive: Toyota weighs adding US production of new RAV4 in response to tariffs, sources say
1. Toyota may shift RAV4 production to the U.S., addressing supply chain issues. 2. This move aims to mitigate U.S. tariffs on imported vehicles.
FAQ
Why Bullish?
Increasing domestic production could enhance Toyota's market presence and reduce costs. Historical examples show that U.S.-based production often improves profitability for automakers.
How important is it?
The decision to localize production can substantially impact operational efficiency and profit margins for TM, particularly in the SUV segment.
Why Long Term?
Long-term benefits may arise from reduced tariff exposure and strengthened supply chains. Similar strategies have helped automakers increase resilience in past economic cycles.