Ford’s Headache is a Boon for Japanese Automakers
In addition to huge sales declines and subsequent losses in Europe, Ford Motor Co. (NYSE:F) is now being pressed in Asia as well, notably Japan. In a television interview, CEO Alan Mulally said that he and the company are concerned about the depreciation of the Japanese yen, which has put increased pressure on competition here in the U.S.
“The most important thing that most countries around the world believe in is letting the markets determine the currency,” Mulally said today from Bangkok in reference to the Japanese currency, during an interview on Bloomberg Television’s “First Up with Susan Li.” “That’s just so important to all of us in the international trading system.”
The yen has depreciated about 15 percent since last November, when the then still-campaigning Prime Minister Shinzo Abe pledged to depreciate the nation’s currency to bolster Japan’s exports, which the country’s economy relies on for stability. Natural disasters and stagnant economic climates worldwide have dented Japan’s exporting abilities, and to compensate, it is turning to currency devaluation to pick up business. Shares of Toyota (NYSE:TM), Honda (NYSE:HMC), and Nissan have increased as a result.