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Investing.com-- Shares of Toyota rose sharply on Thursday after the company said it will invest $88 million to increase hybrid output in the U.S., while a report that President Donald Trump was considering some tariff exemptions for automakers also helped.
Toyota Motor (NYSE:TM) (TYO:7203) rose as much as 5% to 2,718.0 yen in Tokyo trade, underpinning a 0.9% gain on the Nikkei 225.
Toyota said on Wednesday that it will invest $88 million in a Buffalo, West Virginia plant to boost its production of gas-electric hybrid vehicles, increasing U.S. production in the face of steep tariffs on U.S. auto imports.
Toyota plans to increase the production of hybrid components at the facility.
Gains in Toyota shares also tracked those in their U.S. peers, after the Financial Times reported on Wednesday that Trump was considering exempting automobile part imports from his steep tariffs against China.
The report drummed up hopes that Trump will grant the sector more exemptions, especially given that his 25% duty on all auto imports is likely to remain in place. A separate 25% duty on auto part imports is also set to take effect from May 3.
While Toyota does have some production facilities in the U.S., it still manufactures a bulk of its vehicles in Canada and Mexico, which are subject to Trump’s tariffs. The world’s biggest automaker also imports vehicles and parts from China.
Other Japanese automakers also advanced following the FT report. Honda Motor Co Ltd (TYO:7267) (NYSE:HMC) rose 2.7% on Thursday, while Nissan Motor Co., Ltd. (TYO:7201) (OTC:NSANY) added more than 5%.