Toy­ota ex­pands Euro­pean pro­duc­tion

The Pak Banker - - INTERNATIONAL BUSINESS/SPORTS -

Toy­ota Mo­tor Corp. (TM) said it plans to ex­pand pro­duc­tion in Europe to re­duce cur­rency risk, Chief Re­gional Of­fi­cer Di­dier Leroy said.

The car­maker's goal is to pro­duce 75 per­cent of Euro­pean sales in the re­gion up from 63 per­cent to 64 per­cent within two years. Its lux­ury Lexus brand is en­tirely pro­duced in Ja­pan.

"We want to have a busi­ness model that com­pletely frees us from the ex­change no­tion," Leroy said in an in­ter­view at the Geneva Mo­tor Show.

The yen has de­pre­ci­ated 6 per­cent against the euro this year and was trad­ing at 121.51 per euro as of 9:40 a.m. in Lon­don af­ter drop­ping to 127.71 in Fe­bru­ary, the weak­est since 2010. It's down 7 per­cent against the dol­lar. Still, Toy­ota's im­pact from the ex­change rate this fis­cal year will be less than 10 mil­lion eu­ros ($13 mil­lion), Leroy said. "We're cur­rently keep­ing in our fore­casts ex­change rates at 105-110 even if it's cur­rently at 121-123," Leroy said.

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