Japan's Toyota Motor Company vice president Shinichi Sasaki, a few days ago the media said Toyota will increase the localization of parts production bases overseas, the proportion of procurement, in response to yen appreciation.

    Yen higher profit margin narrowed Japanese cars

    Since March of this year, the dollar continued to fall against the yen, a record low. From historical experience, in 1995, after the earthquake in Japan, the U.S. dollar against the yen also climbed to the highest point, is due to the fear of disaster-than-expected risk aversion to stimulate the Japanese companies and Japanese insurers collected a lot of foreign capital investment back to the country, in response to various types of reconstruction and paid work, resulting in a higher yen after the earthquake.

    The stronger yen has brought the inevitable result of a car dealer profit margin is narrowing. In June, Japanese Industrial Association, Toshiyuki Shiga, a public that further yen strength of the current "unacceptable." It warned that if the Japanese yen continued strength will weaken the competitiveness of enterprises in overseas, while the injured is the domestic auto industry jobs. Fitch Ratings in March, an analysis report pointed out that "the yen in the next three to six months, the trend will be the profitability of Japanese car manufacturers devastating blow."

    Toyota to face universal parts

    Currently, the Toyota production base in Europe and America the proportion of local procurement of parts more than 90%, while in emerging markets have not yet reached this proportion. To avoid the impact of exchange rate fluctuations, Japan's Toyota Motor Corporation, said Sasaki, vice president, emerging markets in the future "may be 100% locally sourced parts," the Toyota low-end cars.

    In fact, because of the closure of parts procurement system is too high and prices are generally higher than the industry standard parts, Toyota small cars made in China, priced too high, sales has always been poor.

    In addition to foreign exchange rate and competitiveness of small cars reasons, in the 3.11 earthquake, and compared to other Japanese car manufacturers Toyota, Honda car dealers because the two high proportion of localized parts supply, resulting in the global cut-off and return to work hard to bring significant business losses. Therefore, Toyota lowered its full-year production target, and may therefore be "the world's largest car manufacturer," the title over to the return of General Motors.

    In addition, given the 3.11 earthquake and tsunami, supply chain disruptions, Japan's Ministry of Economy is working with the domestic automobile manufacturers to promote the common parts of the consultation, to address such risks. In this regard, Sasaki said, "Toyota has expressed a positive attitude." It said, the micro-controller for airbags and other components are not very different between manufacturers in 2013 is expected to achieve universal.