Impact of strong Yen on Japan automobile industry
The strength of the yen is felt all over the world market. Stocks, exports, imports even domestic market is affecting.
A strong yen hurts Japanese exporters the most because it makes their goods less competitive. Importers turn towards other countries. Every time the dollar loses ¥1 in value, Toyota Motor loses about ¥30 billion in earnings per quarter, according to the automaker. Nissan also suffered a massive $900 million loss last quarter. Honda Motors produces more than a quarter of its automobiles in Japan, thus rising Yen will hurt Honda due to stronger Yen its products will become increasingly more expensive for international buyers in these markets.
But many Japanese companies have spent $26.6 billion on mergers and acquisitions overseas in the three months through June. Most Japanese manufacturers have already moved towards their production offshore—and closer to the markets where growth is fastest. The most recent large acquisition was New Zealand’s largest beer companies, by Asahi Beer.
Japanese Manufacturers and exporters are ready to fight back the profit eating Stronger Yen. Productions have slowed but not stopped. People are ready to fight the temporary hardships to raise the country from the effects of Tsunami, reactor problems and rising Yen. They are working out ways to minimize the effects of strong yen and finalize plans for future.
Toyota Motor Corporation plans to expand the line of hybrid models, launching about 10 more by 2015, and continue to develop a full range of plug-in hybrid vehicles, pure electric vehicles and fuel cell vehicles.
Nissan aims to lift global sales 9.9% to 4.60 million vehicles. By region, it is projecting a 12% rise in China for this fiscal year to 1.15 million vehicles, a 6.8% increase in North America to 1.33 million vehicles and a 1.7% gain in Japan to 610,000 vehicles.
Sun rises after darkness of the Night. Japan Economy will soon rise to bring brightness. Exporters of used and new cars
from Japan just wait for darkness to vanish.
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