Toyota to export US-made cars to S.Korea

Japan's Toyota Motor will export cars made in the United States to South Korea for the first time in response to the strong yen.

Toyota said on Tuesday that it will send about 600 minivans a year to South Korea starting this month. The vehicles are assembled in the US state of Indiana and had previously been for sale only in North America.

Toyota has been exporting cars made in Japan to South Korea, but not vehicles made in the US.

The automaker decided on the move because of the prolonged strengthening of the yen. The strong yen has made exports from Japan unprofitable, but the price of US-assembled cars has become more competitive.
South Korea and the US are aiming to put a free trade agreement into effect next January.

Toyota plans to increase exports of US-made vehicles to South Korea in the future. This is because the phasing out of tariffs under the free trade agreement will benefit Japanese automakers that manufacture cars in the US.

Wednesday, November 02, 2011 15:10 +0900 (JST)