Toyota expands European production
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.