As the Japanese Yen continues to rise, Toyota has announced its decision to shift production of its Kluger mid-size SUV from Japan to the United States.
Sold as Highlander in the US, Kluger is no longer sold in Japan but sells in significant numbers in both the United States and Russia. With Australia one of the only other markets to sell Kluger, the decision made economic sense, Toyota saying "we'll build them where we sell them".
Production of Kluger in the US will include Hybrid and export variants, representing a $400 million investment for the company.
Toyota says it expects to hire around 400 additional workers as a result of the move, adding to the current 4800-strong labour force. The Indiana plant also produces Sequoia (a full-size SUV) and Sienna (MPV) models for US consumption.
"This project allows for better utilisation of the [Princeton] Indiana plant, and will help Toyota capitalise on the improving North American and global auto market," Toyota’s US executive vice president, Steve St. Angelo explained. "In addition to the new jobs at the Indiana plant, this project will increase opportunities and jobs for our North American supply base."
China also sells Toyota Kluger [Highlander] models, but produces its own variants for local consumption.
The Toyota Kluger is the second most popular medium SUV sold in Australia, with Ford's Territory taking top spot.
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