Toyota Moves Yaris Production to France

The move is expected to keep the strong yen and energy costs from eating into earnings.

D

ue to high energy costs and a strong yen, Toyota is shifting production of its Yaris subcompact from Japan to France.

The move is expected to keep the strong yen and energy costs from eating into earnings. Nissan, Mazda, and Honda have all shifted at least some production to Mexico to reduce the cost of importing cars to the U.S. High corporate taxes and the cost of labor regulations, along with the policy fallout from last year's tsunami, are also forcing Japanese automakers to move production elsewhere.

2012 Toyota Yaris

It's unclear if this will mean anything for new-car transaction prices, if at all. We suspect it likely won't.

Only gasoline versions of the Yaris will be exported from France to North America, with about 25,000 units combined being shipped to the U.S., Canada, and Puerto Rico.

It does now allow Yaris buyers to steal the old Coneheads line and say "We come from France," though.

[Source: Reuters]