Will Toyota start closing plants in the US and Europe and increasing production in China and India?

It's hard to say. The American car companies are going through what looks to be a pretty big restructuring process. GM is cutting a number of brands, and I'm not expecting Ford or Chrysler to get any bigger in the next few years.

However, once this recession is over, Americans will probably start buying cars at about the same rate that they were before. The question, of course, is when that will be. Most manufacturing is now done overseas because labor is so much more expensive in the United States.

However, automobiles are fairly expensive to transport overseas, so some of the financial benefit of offshore production is lost in transit. When you also consider the millions to billions of dollars that a car company has to invest to get an assembly line up and running, there are tremendous one-time costs involved in moving existing production elsewhere. Thus I expect Toyota will likely continue manufacturing cars in the United States for the US market.As people in India and China become more wealthy and more able to afford Toyota's vehicles, I expect they will try to open new manufacturing plants in those countries as well.

When the dollar falls plants will move here. If the dollar gets strong plants will move away.

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