Automakers urge US government to fight Japanese currency manipulation

Article by Anita Panait, on January 22, 2013

Carmakers in the United States have urged the Obama administration to stifle Japanese efforts to resuscitate their economy by weakening their currency to boost exports. The carmakers claim that the practice would hurt the US jobs market. Matt Blunt, president of the American Automotive Policy Council, told Reuters in an interview that Japan was engaging in "currency manipulation," which makes it harder to create jobs in the US.

He noted that the Japanese yen has moved 13 percentage points in a short period of time, which is more than the profit margin on many small cars. Blunt told Reuters that although the “product” could be made in other places, it is the carmakers’ desire to create it in the US and export it around the world.

The American Automotive Policy Council represents the Detroit Three carmakers -- General Motors Co., Ford Motor Co. and Fiat-controlled Chrysler Group. In a statement, Blunt said that they are urging the Obama Administration to make it clear to Japan that its currency policies are unacceptable and “will be met by reciprocal measures." Japan is currently suffering its fourth recession since 2000, while its export-dependent economy is hurting from a strong yen.

Newly named Japanese Prime Minister Shinzo Abe has grumbled about the yen’s current value, placing more pressure on the Bank of Japan to further ease monetary policy by increasing its annual inflation target to 2 percent. The yen weakened against the dollar Thursday as investors bet that the Bank of Japan will further ease its monetary policies.

Topics: united states

If you liked the article, share on:


Login or Create new account to add a comment!


Tesla is making sure that all models under production will receive the necessary advanced hardware that will allow them to be autonomously driven. The fitment of these advanced hardware to...
by - October 27, 2016
Wondering how fast the 2017 Chevrolet Camaro ZL1 in actual driving? To provide customers a good idea on how fast the 2017 Camaro ZL1 could really get, Chevrolet recently had...
by - October 27, 2016
So, it is official! The new Honda Clarity FCV has the longest verified range of any zero-emissions vehicle currently on the road in the United States. One of the main...
by - October 27, 2016
Many have been anticipating Mercedes-Benz Vans’ newest luxury pickup truck, the X-Class. While Mercedes-Benz has yet to reveal the official production version of the X-Class, it was kind enough to...
by - October 27, 2016
We’ve seen quite a lot of intriguing stories in the age of Internet (where the most interesting part was revealed before the story unfolds). Some are from movies and novels...
by - October 26, 2016