"With where the yen is today, I think it's only a matter of time" before Toyota moves more production to North America, particularly to the United States, to have assembly nearer to the U.S. market, Toyota USA CEO Jim Lentz told Reuters.
Aside from the yen, Toyota's engineering capabilities in the States are a driving force behind the potential production shift, Lentz added. Toyota currently employs more than 1,100 engineers at its engineering center in Ann Arbor, Michigan.
Another possible factor is the Japanese government's decision to extend its dollar credit facility, which is designed to counteract the harmful effects of the yen by helping Japanese companies invest overseas.
