Is Toyota shifting more production to the U.S.?

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One of the largest automaker today, Toyota, may soon have to make the decision to dramatically increase its production in and export to the United States. Toyota has experienced serious decline of demand in Japan and if the demand is unable to recover in a short period of time, Toyota would soon have to shift its global production focus to U.S.

Toyota CEO Akio Toyoda , left, and Gov. Haley Barbour celebrate the unveiling of Missisippi's new license plate on the front of the first Corolla built in Mississippi during a ceremony that marks production start at Toyota's auto manufacturing plant in Blue Springs, Miss

Due to the yen’s strength (gaining 9% against the American dollar in the past 6 months) and parts shortages after the March 11 earthquakes and tsunami, Toyota has lost major part of its sales crown as the world’s biggest automaker to General Motors in the first half of this year. A strong yen with its appreciation against the dollar and euro presents a danger to the Japanese manufactures (the profit of Japanese automakers has decreased by $4.3 billion). Not only does it reduce the competitiveness, it also reduces the value of earnings when overseas profits are translated to yen. Facing this crisis of decline in the competitiveness and profitability of Japanese manufactures, President Akio Toyoda said that if demand does not recover, Toyota would have to move its production focus to United States where there will be several new factories on the go. This is certainly good news for the economy of the United States; not only will this provide a fairly optimistic number of new jobs to help console the unemployment issue, it will also help revive the economy of certain regions in the United States.

 

Click for further reading:

Toyota Motor Corporation Wants More U.S. Production

Bloomberg news report

 

 

Food safety and business ethics

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For those who enjoy Chinese foods, you might be aware that you will not enjoy them in China as much as you do in here. They are good; they are cheap, but they are just not safe. China has been struggling with food safety issues for a very long time. Tony-red, wax, sulfur, bleach: everything that is able to make foods look or taste better is added to all kinds of foods by unethical manufacturers to reduce costs, and sell low quality products at a higher prices, in disregard of the harm that the chemicals could cause to consumers’ health.

(click the imagine to read the original article “Tainted-Baby-Milk Scandal in China“)

 
The unsafe foods range from street foods, to infants’ formulas. In September of 2008, the leading dairy brand in China, SanLu Groups, recalled its melamine-tained  milk power that caused illness and deaths to more than a thousand children from all around China. As young as 4 years old, kids who have been drinking milk made from SanLu milk power get kidney stones or permanent brain damage.
While Chinese economy develops at such an exponential rate, social responsibilities and business ethics are essential for businessmen to make the right decisions.