• Oct 28, 2010
Akio Toyoda, president of Toyota, has stated that the Japanese automaker is planning to revise its earnings forecast due to the fact that the Yen has reached a 15-year high. The full-year profit forecast was based on a rate of 90 Yen to the US Dollar. It will be reduced to around 80 Yen to USD. The Yen has risen 15 percent against the USD and 13 percent against the Euro, which is not good for a company that has to repatriate earnings from its overseas sales.

Earlier this year, the rising Yen created concerns that Akio Toyoda would be forced to shutter some assembly plants. Toyoda assured the public that plants would not be closing, however more vehicle assembly is being shipped to overseas factories.

Toyota is not alone in making this move. Nissan has stated that it is looking at doing a revision of earnings as well as finding more locally sourced parts to aid overseas production.

[Source: Bloomberg]


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    • 1 Second Ago
  • 4 Comments
      • 4 Years Ago
      The question is with a falling dollar how low is Japan willing to go on its manipulation of the Yen? It's really going to hurt Toyota if the Yen keeps appreciating against the dollar like it is now.
        • 4 Years Ago
        Nothing they can do about that. They've been trying to fight it with their own money printing, but the US has printed trillions in recent months and will do it again in November to devalue/manipulate their currency.
      • 4 Years Ago
      Baseball, Apple Pie, and overseas currency exchange.

      It's good to be an "American Car Company"
      • 4 Years Ago
      A lowly valued currency is what made Japan's exports blow up during 1960's-1990's. Now they've been in a real big slump and many Japanese products are built here, with American or Chinese parts inside! Kinda sad!

      I miss those days; Japanese cars just don't have the same quality anymore. Korea is the new Japan; i believe their currency is mind blowingly devalued.. it could explain why everything from Korea is extremely competitive on price.

      Good luck with that, Japan :/