Toyota (TM, quote) sells 37.8% share of Indonesia cars and is now looking to turn the country into an export hub. PT Toyota Motor Manufacturing Indonesia, the automaker’s subsidiary in the archipelago, has announced that its exports have nearly doubled during the first half of 2012, riding high on strong demand from the Middle East.
The Russian Ministry of Industry now expects car sales to edge up by 6% over the next year, which is a sharp pull back from the 23% growth rate everyone predicted a few months ago. Considering signs that the auto industry is in trouble throughout the emerging world, this is surprising and somewhat disappointing news. And U.S. traders can actually get exposure to this story.
After another week of official indecision, European markets are taking comfort from lingering signs of strength in the U.S. economy while Asian stocks surge on the prospect of rising U.S. demand for their products. Car makers in particular are in focus.
In his book, “Adventure Capitalist: The Ultimate Road Trip,” legendary financier Jim Rogers prepared for his journey around the world by having a customized Mercedes-Benz (DDAIF, quote). The reason was simple: the global elite aspires to cruise in style in a Mercedes, not search for an electric outlet every 100 miles to recharge a Nissan Leaf (NSANY, quote).
Legendary investor Jim Rogers once stated that a weak currency was the sign of a weak economy, which was the sign of a weak government. Due to the strong Japanese yen, Toyota Motors (TM, quote) is operating at a significant disadvantage as German car makers such as Volkswagen (VLKAY, quote) and Mercedes Benz (DDAIF, quote) benefit from the weak euro.