Japan's 25 to 30 per cent undervalued yen drives exports

July 13, 2007

Japanese automakers expand exports in face of record low domestic sales

Washington, D.C. - Japanese domestic auto sales have hit a 30-year low, while the country's artificially weak yen has helped drive record levels of exports to the U.S., according to auto industry company sales reports.

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M35MT - 7/13/2007 2:37:23 PM

+1 Boost

Japan is pushing for a new trade agreement with the US due to the increase in exports from South Korea.

investor27 - 7/13/2007 2:43:05 PM

+2 Boost

What does this all mean? Shouldn't the Japanese cars be 30% cheaper than a year ago (Nissan, Toyota and Honda)?

I95SPEEDINGTICKETS - 7/13/2007 2:52:45 PM

+1 Boost

It means some Idiot wants to cry foul because there is a larger increase in Japan Built US sold vehicles compared to US built US Sold Japanese Vehicles

It would not matter one bit if Japan deliberately halved the value of the Yen just to aid their Auto Manufacturers.

The US Dollar last year was at .75 GBP now it is at .48 and yet I do not see British Manufacturers Crying about it. We all know it is Hurting their Exports to the USA yet they quietly go on about their business.

Maybe the British Manufacturers should start complaining that the Bush Administration knowingly Put the USA in Serious Debt in order to Devalue the US Dollar thus increasing the Export Potential of USA based Manufacturers.

JWalkerLegrande - 7/13/2007 4:26:52 PM

+1 Boost

The US dollar lost about 25% of its value in the past two three years vs. the euro.

Cadillac decided to launch in Europe in 2006. Flopped
D/C decided to launch Dodge in Europe in 2006. Flopped
Ford decided to launch Lincoln in 2004. Didn't even start, flopped prior to D-day.

Having a weakening currency is only one part of the equasion. A decent product is also required.

BTW, the Chinese currency (yuan or rimimbi, anyway U like it) has increased its value against the greenback by ~12% in the past 15 months. I would never pair it with the yen, completely different story.