12/06/2011

Camry Prices in Korea May be Cheaper from Next Year: Customer Benefits of the KORUS FTA

Toyota announced, yesterday, that 6000 Toyota Camrys  will be exported from its Kentucky plant to Korea, early next year, along with a undisclosed number of Toyota minivans.

Toyota claims that the exports will support over 20,000 American jobs.  At present, Toyota exports over 100,000 American-made Toyota cars and trucks.

The step, also, is a good move for Korean consumers.  The Camry will, now, likely compete head-on with mid-size Korean family cars.  Now, the price of Toyota cars are not competitive because of trade and non-trade barriers that puts the Camry out of the radar screen of the average Korean consumer.

I doubt that many Koreans will be buying Camrys in large numbers, but likely the local Korean car manufacturers will be forced to keep their prices in line with the prices they charge consumers in the states.

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SeanHayes@ipglegal.com