Toyota to export U.S.-made cars to emerging economies

TOKYO (MarketWatch) -- Toyota Motor Corp. (7203.TO) plans to export large cars produced in the U.S. to the Middle East and other emerging economies around the world, the Asahi Shimbun reported Tuesday.

Toyota, which mostly sells its U.S.-made cars only in the U.S., now plans to export them as car sales are declining in the world's biggest economy due to the economic slowdown and the rise in crude prices. The plan is also motivated by the fall in production costs in the U.S. due to the dollar's weakening against the yen.

According to the report, the automaker will start exporting Sequoia sport utility vehicles to the Middle East before the end of this year. It also plans to export Sienna minivans to China and other countries in the early 2010s.

Toyota set to raise prices of some cars

Toyota Motor Corp. is raising prices on some U.S. vehicles amid worries about its profit growth in the American market.

The price increases of about 1 per cent will start in the middle of May, and include a $200 (U.S.) hike on the 2008 Yaris sedan, boosting the cost of the base model to $12,425. Extra features mean higher prices. The base 2009 Camry (pictured above) will go up $200, to $18,920, while the base hybrid Camry, introduced as a 2007 model in late 2006, will cost $300 more, at $25,650.

Like other Japanese automakers, Toyota is enjoying sales growth while American automakers are struggling. Soaring gas prices have increased demand for smaller, fuel-efficient cars that Japanese automakers are reputed for.

But Toyota faces a challenge in maintaining profits partly because of the U.S. dollar's decline, which erodes the value of Japanese exporters' overseas earnings. Worries are also rising about how a U.S. economic slowdown may hurt sales.