In order to make a profit, Toyota is learning that they must have more U.S. factories. Toyota has used Japan to export for years but now all that must change since Toyota’s financial results show that export bases isn’t sustainable, even for Toyota.

Toyota had a huge blow in the last fiscal year as sales went from an astonishing $28 billion profit to loss. The $28 billion swing was due partially to the company’s own apathy. Toyota has relied on imports far more than the leading competitors. Toyota has been lulled by profits and favorable dollar-yen exchange rates on exported bases but now currency rates have swung against Toyota. In order to be profitable, Toyota will have to cut its currency exposure across sea and start building cars where the vehicles are sold, meaning more factories in the United States.

Last year Toyota exported 60 percent of all the vehicles built in Japan and 45.1 percent of all sales for Toyota in the United States last year were imports. It is completely unrealistic for Toyota to think that exports are maintainable in the current levels. When the auto industry and car sales drastically decreased, Toyota planned to build the Prius in Mississippi at a new factory.

Building the car in Mississippi should help Toyota to work toward more assembly plants in America. Akio Toyoda, grandson of the company’s founder, took over as president in June and promised that new change was coming to Toyota, including more production in North America.