By John Q. Hosedrinker 
Ford is pushing back the launch of its electric pickup and van models to 2028. This shift prioritizes a new low-cost EV platform, aiming to produce more affordable electric vehicles. The platform will debut in 2027 with a smaller electric pickup. This strategic move allows Ford to compete more effectively in the growing EV market by offering more accessible options to consumers.
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Toyota plans a new Japan assembly plant despite a potential $10 billion tariff bill on U.S. imports, and frankly, it’s not hard to see why. Let’s be honest, the current economic landscape in the US feels a bit… volatile.
This whole tariff situation is, to put it mildly, a moving target. The details are constantly shifting, and as it stands, the US market presents a lot of uncertainties for long-term investments. The fact that these tariffs could be impacting import costs is just one piece of the puzzle. So, from a business perspective, building a brand-new factory in Japan, where things are generally more stable, makes perfect sense. The company has to be thinking in decades, not in short-term economic cycles.
And think about it: Toyota is a global player. Their customer base extends far beyond the US borders. It makes sense to build in a location that allows for easy access to multiple international markets, rather than focusing solely on the US. The US market, while still important, is not their only target.
The US is a politically unstable place to put your eggs in right now. It’s hard to make long-term plans when the economic rules of the game seem to change on a whim. Building in a more predictable environment like Japan offers a certain stability that’s simply hard to ignore. They sell cars to so many places other than the US, why take a chance of facing tariffs when the end product ships from the United States?
It’s like this: if you build in the US, you could potentially face multiple tariffs on all the raw materials you need and then more tariffs when you export. If you export finished products, you just deal with tariffs once. Smart, right? And let’s not forget, setting up a new assembly plant is a massive undertaking. We’re talking years from start to finish. Toyota is likely betting that by the time the plant is operational, the current economic climate in the US could be drastically different.
Furthermore, Japan’s long-term economic strategy makes more sense. With wages remaining the same since 2000 and the value of the Yen being what it is, the location alone is a positive move. The US seems to be the one with the problem. Toyota sells cars in places other than the US. A lot of places! Making the car in the US is expensive. The tariffs on raw materials, then the need for reciprocal tariffs. It all adds up.
Toyota is not just planning for the next quarter. They’re planning for the future of the brand. It’s about long-term sustainability. This is why they are more interested in building somewhere stable so they can sell anywhere.
Ultimately, this decision isn’t about the current administration; it’s about smart business practices, global diversification, and planning for the long run. Toyota, like any smart global company, has to ignore the noise and focus on the fundamentals. Building in a stable, internationally-accessible location like Japan is just the smart move. They know the US is unstable, and even if tariffs are involved, they are likely betting on the tariffs being temporary.