Toyota Motor is contemplating manufacturing its next-generation top-selling model, the RAV4 SUV, in the United States, according to three insiders. This decision arises from the escalating tariffs on imported vehicles in the US, prompting Toyota to reassess its supply chain strategy. Currently, this SUV is manufactured in Kentucky, Canada, and Japan. Initially, Toyota planned to export the new RAV4 from Canada and Japan to the US, but the company is now also exploring the option of expanding production capabilities in Kentucky. Two insiders revealed that this shift aims to alleviate the impact of the 25% import tariff on Toyota and avert potential cost hikes stemming from fluctuations in the yen exchange rate.
