Unfettered Yen Forces Japanese Automakers To Start Discounting

Psssst! Want to buy Japanese car makers below book value? Now is the time. Spooked by the strong Japanese Yen, stocks of export-heavy Japanese automakers such as Toyota and Suzuki can be had for less than the assets on the books.

Toyota can be bought at a price to book ratio of  0.99. Suzuki is a bargain at 0.94. Mazda Motor, Sony, and Sharp can be had for less than they are worth. The reason?  An obscenely strong Yen that is at its highest level in 15 years. (Please remind to shove worthless dollar bills down the throats of any foreign exchange challenged people who still claim that the Yen is artificially low.) But there are also “growing concerns about an economic slowdown abroad.” And you know who they mean with that.


 

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Agent009 - 8/25/2010 12:36:52 PM

+1 Boost

It is amazing what happens once you start playing on a level field. Japan manipulated the yen for the better part of two decades and once this control is lifted they have to resort to the exact same measures the Americans did.

uaw_lax - 8/25/2010 12:44:09 PM

+3 Boost

There is a difference between free trade and fair trade! Now lets do something with China and Korea!

veyron1001 - 8/26/2010 3:46:24 PM

0 Boost

You do that say god bye to GM.

Agent009 - 8/25/2010 12:54:48 PM

+2 Boost

True!

thstone - 8/25/2010 6:56:18 PM

0 Boost

Yes and no.

First, buying below "book" value doesn't necessarily equate to cheaper prices at the dealer. Better value yes, cheaper price maybe/maybe not.

And second, for most of the past 20 years you could level the currency playing field all you want and US manufacturers would still have to offer BIG incentives to move the iron.

uaw_lax - 8/25/2010 11:41:15 PM

+1 Boost

Huu give it up we all know that the Japanese government has bank rolled toyota for years and made cars like the prius while simultaneously keeping foreign cars out of its market

uaw_lax - 8/26/2010 11:56:42 PM

+1 Boost

You make no sense at all.