Toyota Wants Its Dealers To Sell Ford And Other American Brands

Extreme Measures To Dodge Tariffs

The pricing pressure caused by the introduction of tariffs, particularly those on imported cars, is leading some automakers to unconventional solutions. One such solution, reports Japanese publication The Mainichi, is that proposed by Toyota chief technology officer Hiroki Nakajima, who suggested in May (during a meeting with Toyota chairman Akio Toyoda and Japanese Prime Minister Shigeru Ishiba) that his company could help American brands sell their cars directly through Toyota dealerships. “When U.S. manufacturers bring cars to Japan, for example, using Toyota’s sales network to deliver them is an option,” he said. Another option is to export American-made cars from Japanese brands back to Japan.

Why Toyota Could Sell American

These ideas could help reduce the United States’ trade deficit with the Asian country, which would theoretically make tariffs redundant. If President Trump were to agree, he may subsequently reduce or remove those tariffs, which are projected to add four figures to the price of your next car. Notably, recent reports have suggested that Europe sees higher tariffs being approved, which has led to claims that brands like Audi may move some production to U.S. facilities, and Toyota itself is on the verge of raising prices, though it did not blame tariffs for the adjustments. Both Japan and Europe would love to make a deal, and Nakajima-san’s idea isn’t the only radical one being presented.

Mercedes CEO Also Wants To Balance Global Trade

Earlier this month, Mercedes CEO Ola Källenius suggested that the European Union could allow U.S.-built cars to be imported duty-free. In return, the U.S. could waive tariffs on an equal number of vehicles exported by EU automakers to America. “For every car that leaves the USA or Europe, a car from the other side comes in duty-free,” Källenius told Der Spiegel. “We have put this idea to both sides, and it is a possible component of the negotiations between the USA and the EU.”

The CEO also pointed out that his company (among many other foreign automakers) exports plenty of cars built on American shores, and he feels this should not be overlooked. “Two-thirds of the vehicles from our plant in Tuscaloosa, Alabama, are exported to 150 countries worldwide,” he said. “We therefore contribute to a more balanced trade balance for the USA. We believe this should be taken into account in the negotiations.”