Toyota Could Sell American Cars In Japan … Again

Toyota Cavalier
Credit: Toyota

While the U.S. and Japan quietly hash out a new trade deal, one Japanese auto exec thinks his company could work with its American counterparts to help them sell vehicles in Japan. A deal to increase exported cars from the U.S. to Japan could play a major role in a broader agreement.

Toyota’s Chief Technology Officer Hiroki Nakajima said in an interview posted to the company’s website “when U.S. manufacturers bring cars to Japan, for example, using Toyota’s sales network to deliver them is an option,” Bloomberg reported.

Of the 4.5 million vehicles sold in Japan in 2024, just 16,000 were U.S.-built models and around 10,000 of those were Jeeps. The market is so small right now that it’s more of a speciality business for the U.S. automakers and updates to the vehicles to meet local regulations are often handled by contractors in Japan.

While a deal to access Toyota’s 4,000-strong network of showrooms is far from becoming reality, it wouldn’t be the first time the automaker helped open the door to American brands.

Toyota Cavalier
Credit: Toyota

From 1996 to 2000 Toyota sold a rebadged version of the Chevrolet Cavalier as the Toyota Cavalier in an effort to alleviate tensions during trade negotiations at that time. The cars were built with right hand drive, but it was otherwise just a badge swap.

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Less than 40,000 were exported during the period, after which U.S. automakers largely gave up making major inroads in the country. Toyota also sold a small number of Saturn cars at the time, which is particularly interesting as that brand was created as an import-fighter in the U.S.

As it stands, cars imported from Japan or anywhere to the U.S.a re subject to a 25% import tariff, although the U.K. recent reached an agreement allowing it to export up to 100,000 vehicles at 10%. Interestingly, Toyota is reportedly moving production of the U.S. market versions of the high performance GR Corolla to the U.K. in order to take advantage of the lower rate.

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Toyota builds a large number of vehicles in the U.S., but several of its popular models, like the 4Runner SUV and most Lexus vehicles, are manufactured in Japan.