Seems a flurry of safety recalls of cars known for reliability are not Toyota’s biggest problem. What is? Not building enough auto manufacturing plants in the U.S. and elsewhere outside of Japan.

The continuing strength of the yen against the dollar and other currencies is making it more expensive for Toyota to export its cars, and that is costing it both profits at home and sales abroad. The implication: look for Toyota to become even more of a globalized brand, if that is even conceivable. Toyota already has 4 U.S. plants and some 160,000 employees at these and its U.S. dealers. Perhaps that is only a beginning?

N.Y. Times — BUSINESS | September 03, 2010
Toyota Feels Exchange-Rate Pinch as Rivals Gain
By HIROKO TABUCHI
For all the turmoil over Toyota’s wave of recalls, the world’s largest automaker may face a bigger problem: the surging yen.