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Toyota to export vans and SUVs from U.S.

It seems a bit odd, but Toyota Motor Corporation (NYSE: TM) is an American auto exporter. It has been sending U.S.-made Avalon sedans to the Middle East for about a year. And now comes news via our pals at Autoblog that it will start shipping Sienna minivans and gigantic, American-style Sequoia SUVs to the Middle East as well.

No doubt this comes as good news to Toyota's American employees. Unlike competitors Ford Motor Company (NYSE: F), General Motors Corporation (NYSE: GM) and Chrysler, Toyota has avoided laying off employees, but it has slowed production in recent months. With the new export plan, production is being increased at its state-of-the-art plant in Princeton, Indiana. That's pretty impressive, given that the American domestic car market will likely shrink by a million cars this year.

More interestingly, though, this raises the always tricky question of the national identity of global manufacturers. Is a Toyota Avalon made by American labor in Indiana an American car? How about a Buick made in Canada? Or a BMW produced in South Carolina? Not easy questions to answer. Profits end up in one country, wages in another -- and capital investment perhaps in a third.

Whatever your answer, the issue serves as a useful reminder of two things: 1) the global economy is extremely complex, and 2) Toyota is beating the American automakers at their own game.
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Last updated: July 06, 2009: 07:48 AM

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