A Toyota Logo is pictured on a Prius car at a Toyota dealership in west London February 9, 2010. REUTERS/Toby Melville/File Photo - RTX2QNCU The Japanese government defended Toyota Motor Corp on Friday saying that Japan’s automakers have and will continue to contribute to employment in the United States after U.S. President-elect Donald Trump singled out the automaker and threatened to slap punitive tariffs on its Mexico-built cars.
Trump has repeatedly hit out at U.S. companies for using lower-cost factories abroad at the expense of jobs at home. He has slammed U.S. automakers, including Ford which this week scrapped a planned $1.6 billion Mexico plant.
Other Japanese car makers also fell, with both Honda Motor Co and Nissan Motor Co falling more than 2 percent, which influenced on a fall of Japan’s Nikkei share average on Friday.
Chief Cabinet Secretary Yoshihide Suga told reporters on Friday that Toyota was an “important corporate citizen”, while Trade Minister Hiroshige Seko stressed the contribution of Japanese companies to U.S. employment.
“We don’t have any plan to move existing plants in the U.S. to Mexico or other countries,” Seko added.
Toyota is just one of a host of companies operating in Mexico. It has an assembly plant in Baja California, where it produces the Tacoma pick-up truck, and where it could increase production.
The Guanajuato plant will build Corollas and have an annual capacity of 200,000 when it comes online in 2019, shifting production of the small car from Canada, not the U.S.