FirstPoint Japan
  • What's New
  • Table of Contents
  • Overview
  • Japan Expert Insights
  • Japan Expert Interviews
    • Listen To The Experts (audio / video)
    • Are You A Japan Expert?
    • Prepare For Your Interview
  • Japan Market Entry
  • For Japan Hiring Managers
  • For Japan Training Managers
  • For Japan Recruiters
    • Introduction
    • What We Address
    • Recruiter Jobs
  • Recruiters & Executive Search
  • Training & Development
  • Coaches & Consultants
  • Human Resources Consultants
  • Japan Jobs & Careers
  • Japan Events
  • Our Sponsors
  • Advertise on FirstPointJapan
  • Newsletters & Alerts
  • The Japan Business Blog
  • Resources
    • Japan Labor Standards Office (English Helpline)
    • Tozen Union
    • Nambu Union
  • Glossary of Terms
  • Content Archives (Full)
  • About
    • Leadership & Advisory Board Members
    • Advisory Board Members Application Form
    • Content Contributors & Vendors Application Form
    • Terms Of Service
    • Privacy Policy
    • Policies: Challenges, Rebuttals & Retractions
    • Contact Us

Japan's Weaker Yen, Gives Toyota Strong Advantages

3/30/2013

0 Comments

 
Thanks to an obsessive emphasis on quality, Toyota Motor grew from a tiny spinoff of a Japanese loom manufacturer in the 1930s into the world’s largest automaker. Chief Executive Officer Akio Toyoda has nothing more virtuous than Japan’s weakening currency for a recent assist in his quest for even greater market-share dominance. The yen has fallen 16 percent against the dollar since Oct. 31. That gives Toyota and other Japanese carmakers a financial gain on every car, which they can use to cut prices, boost advertising, or improve their vehicles in ways not open to U.S. rivals.

Morgan Stanley estimates the currency boost to operating profits at about $1,500 per car, while Detroit carmakers put the figure closer to $5,700. “We’re concerned about what the long-term ramifications are,” says Joe Hinrichs, Ford Motor’s Americas chief. Sergio Marchionne, CEO of Chrysler Group and Fiat, also frets about the impact. “We didn’t need this, to put it bluntly,” he told Bloomberg TV on March 5. “It’s going to make life tougher.”

Toyota in February raised its profit forecast by 10 percent for the fiscal year ending March 31 to 860 billion yen ($9 billion), a five-year high. That would more than double the previous year’s profit and signal a convincing comeback from the global recalls and 2011 Japanese earthquake that shook Toyota’s standing as a leader in earnings, sales, and quality.

Detroit automakers are watchful for a replay of the 1990s and 2000s, when a weak yen allowed Japanese automakers to offer American buyers cars loaded with extra features at prices U.S. companies couldn’t match. It took government-backed bankruptcies at General Motors and Chrysler in 2009 and a wrenching restructuring at Ford to get their costs in line with Toyota’s. Those gains are being eroded by the currency shift, says Morgan Stanley auto analyst Adam Jonas. “This is, without a doubt, the biggest change affecting the global auto industry,” Jonas says. “The dollar versus the weak yen will make the Japanese automakers richer, and they can use those profits to target more aggressive growth. Ford and GM are in their bull’s-eye. This is a real threat.”
READ MORE: JAPAN'S WEAKER YEN, TOYOTA ADVANTAGES
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    About FirstPoint Japan

    "Where Japanese Business Begins™"
     
    FirstPoint Japan™  is the first and only English-language portal that helps you accelerate your Japanese Business with expert advice. 

    We advise and guide Japan-based, Japan-facing or Japan-related companies, subsidiaries, senior executives, hiring managers, HR professionals, executive search consultants and others seeking to enter the Japan market, build-out existing operations or accelerate business growth or that are looking to acquire, retain, train or outplace bilingual talent in Japan.

    Archives

    December 2015
    November 2015
    August 2015
    April 2015
    February 2015
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013

    Categories

    All
    Advisory Board
    Asia
    Business Japanese
    Business Mixer
    Business Networking
    Ethical Recruiting
    Ethical Recruiting Alliance
    Event
    Expert Interviews
    Firstpoint Japan
    Firstpoint Japan Advertising
    Firstpoint Japan Announcements
    Firstpoint Japan Website
    Hr
    Hr Events
    Human Resources
    I18n / L10N
    Internationalization
    Interviews
    James Santagata
    Japan Advertising
    Japan Auto Industry
    Japan Auto Industry
    Japan Banking
    Japan Buildings
    Japan Business
    Japan Business
    Japan Careers
    Japan China Relations
    Japan-china Relations
    Japan Culture
    Japan Depositions
    Japan Earthquake
    Japan Ecommerce
    Japan Economy
    Japan Economy
    Japan Education
    Japan Entrepreneurs
    Japan Entrepreneurs
    Japanese Agriculture
    Japanese Careers
    Japanese Consumers
    Japanese Creativity
    Japanese Creativity
    Japanese Culture
    Japanese Culture
    Japanese Diversity
    Japanese Diversity
    Japanese Education
    Japanese Food
    Japanese Food Products
    Japanese Gaming
    Japanese Innovation
    Japanese Innovation
    Japanese Investments
    Japanese Language
    Japanese Leadership
    Japanese Leadership
    Japanese Life Science
    Japanese Military
    Japanese Mobile Gaming
    Japanese Navy
    Japanese Pharma
    Japanese Politics
    Japanese Politics
    Japanese Population
    Japanese Population
    Japanese Security
    Japanese Trends
    Japanese Trends
    Japanese Universities
    Japanese Venture Capital
    Japanese Venture Capital
    Japan Exchange Rates
    Japan Executive Search Firms
    Japan Expert Insights
    Japan Expert Insights
    Japan Fashion
    Japan Finance
    Japan Foreign Law Firms
    Japan Hr
    Japan India Relations
    Japan Infrastructure
    Japan Internet
    Japan Interpretation
    Japan Israel
    Japan Legal
    Japan Litigation
    Japan Luxury Goods
    Japan Manufacturing
    Japan Market Entry
    Japan Marketing
    Japan Monetary Policy
    Japan Patent Litigation
    Japan Recruiters
    Japan Rental Space
    Japan Retail
    Japan Sightseeing
    Japan Startups
    Japan Startups
    Japan Taxes
    Japan Tech News
    Japan Tours
    Japan Translation
    Japan Venture Capital
    Japan Venture Capital
    Jet Programme
    Kim Pedersen
    Korean Business
    Korean Population
    Korean Startups
    Language Acquisition
    Languages
    Localization
    Myths And Memes
    Myths And Memes
    Office Relocation
    Office Space
    Rakuten
    Real Estate
    Recruiting
    Recruiting Events
    Recruiting Japan
    Rumors
    Singapore
    Social Networking
    Softbank
    Sponsors
    Startup Nation
    Succeeding In Japan
    Toefl
    Toeic
    Tokyo American Club
    Toyota
    Videos
    Work Culture
    Work Environments
    Yahoo Japan

    RSS Feed

Picture
Picture

© Copyright 2007-2023 SiliconEdge™ Co., Ltd. All Rights Reserved.