Toyota New Zealand's third-generation Highlander SUV will be built in the United States instead of Japan.
The move Stateside to Toyota's plant in Princeton, Indiana, was not unexpected as the Japanese giant seeks to ease the pressure on its profit margins from the strong yen.
Part of its new policy is to build its vehicles where most of them are sold and to reduce exports from Japan because of a soaring yen, which has undermined profitability.
Japan's carmakers have been hit hard by the yen's continued strength against the US dollar and other currencies. It means Toyota repatriates fewer yen on profits from overseas sales.
"One of the reasons for the shift to the US was to mitigate pressure on the yen - the currency has been very exposed," said Steve Prangnell, Toyota NZ's general manager sales and dealer operations. The US factory will build the Highlander for right-hand-drive markets like New Zealand and Australia (where it is badged the Kluger) and left-hook countries like Russia. The move from Japan production - where the Highlander is not available - pretty much ends any chance of it being built alongside the Camry and Aurion at Toyota Australia's plant near Melbourne.
