GM's Wagoner joins chorus blaming weak yen
.JPG)
General Motors CEO used the bully pulpit at GM's annual shareholders' meeting to repeat a complaint that has been made several times in the past few decades (and will likely will be heard many times again) - the Japanese government is artificially holding the value of the yen low relative to the dollar to help its exporters. The same complaint was recently issued by Chrysler's Tom LaSorda as well. A lower value for the yen makes it easier to stick a lower price tag on an auto that's imported from Japan; or, alternatively, it makes the sale of that vehicle more profitable at the same price.
The yen has experienced two significant slides in value relative to the dollar twice in the past ten years, but at this time it is close to trading near its strongest position over the same time period. While the Big Three do not enjoy the same relationship with their government as the Japanese automakers, it's unclear whether the Hill's financial policy of large federal and trade deficits would allow any significant manipulation of the dollar's value, even if the feds wanted to help the automakers.
[Source: Forbes]
Reader Comments (Page 1 of 1)
koncha 9:52AM (6/08/2006)
That is a pretty weak comment from GM. They are using the stronger value of the Canadian Dollar to augment their profits. This benefits them due to the high number of Canadian built cars coming into the USA. Here is the 5 year chart for the USD to the CAD.: http://finance.yahoo.com/q/bc?s=USDCAD=X&t=5y
Also, the USA has been on a longterm program to devalue the dollar in order to increase domestic purchases and increase the amount of foreign purchases of domestically produced items. The US auto industry helped push the devaluation of the US dollar and just seem to be crying over spilled milk that the Japanese are doing a better job of managing their currency on the global markets.
GM: Never meeting an excuse they didn't like.
Reply
MCS05 10:12AM (6/08/2006)
i just hate excuses, in sports, from my kids and most certainly in corporate America. Build me something I want and I'll pay the price.
Reply
tony belligerent 10:24AM (6/08/2006)
This is some weak "journalism", even for you guys.
From your own article, that you even linked to:
> LaSorda said that he, Rick Wagoner and Bill Ford plan to raise
> this topic, along with health care and energy policy, with
> President Bush in a meeting scheduled for later this month.
Now you're surprised that Wagoner is somehow "joining the chorus" that YOU REPORTED he was already a member of.
Slow news day, or what?
Reply
Rob Lowe 11:06AM (6/08/2006)
Has Wagoner looked at the value of the US dollar lately? Or for the last 3 years for that matter. What are the Japanese doing that the US itself is not doing also.
Reply
Gardiner Westbound 11:30AM (6/08/2006)
Whine, whine, whine. I paid more for my made in Japan car than for a domestic equivalent for its superior design and quality. Domestic cars aren't on my radar screen. Been burned too many times.
Reply
ghughes 12:06PM (6/08/2006)
The ones who should be whining are the japanese people - who subsidize their own automakers by buying dollars from their treasury- rcvd from their taxes- Japan has been cheating on auto trade for 50 years- its high time the US do the same-for instance- GM and Ford merge and the US government pay for their health care and pensions costs- thats how Japan plays the game.
Reply
iQuack 2:04PM (6/08/2006)
I went to Japan (pleasure, not business) and there are no bargains there except sushi.
Anyone who says the yen is cheap should go to Japan and check prices.
I hope GM recovers but it'll do so by improving its products and renegotiating ridiculous Jobs Bank and other UAW chokeholds.
Nobody wants to hear overpaid auto executives moan and groan.
Reply
Lee 2:53PM (6/08/2006)
"Waaah Waaah!" I think Rick missed his nap time.
Reply
lalaland 2:56PM (6/08/2006)
When the yen dropped to 80, you didn't hear the Japanese complaining. They just raised their prices and waited for the Big 3 to match the price increase. At a time when the Big 3 could have made huge inroads on a value equation, they got greedy instead. Quick profits, but no volume increases. Also, the Big 3 could be making a killing in Europe right now by the same equation, given how weak the dollar is against the euro. And yet, their sales still suck over there. It all comes back to product.
Reply
Aki 5:55PM (6/08/2006)
Waaah Waaah.
Camry, Accord, Civic, and most of the top selling Japanese cars are made in the US or Canada. So what's their lame excuse now?
It's just bad PR. Passing the buck makes you look like a loser.
Reply
iQuack 8:28PM (6/08/2006)
I will buy an American-brand car when an American company makes a car that I want.
I could have spent less for a Chevy or Ford than I paid for my Honda Accord, so price wasn't the issue. Quality and driving characteristics were the issues.
Economy is in selection, not price.
Reply