Autoblog

Mazda's first profit in five years in sight due to weak yen

Zach Bowman — Fri, 05 Apr 2013 13:00:00 EST

Filed under: Japan, Mazda, Earnings/Financials

Automotive News reports Mazda is set to turn a profit for the first time in five years. The automaker is more dependent on exports from Japan than other automakers based in that country, and as a result, it has long suffered at the hands of a strong yen. But the currency has declined in value by some 16 percent over the past six months and Mazda's shares have tripled in value to their highest level since 2008. Contrast this situation to a year ago when Mazda printed 1.22 billion new shares to raise cash. The move was equivalent to 70 percent of the company's then-outstanding stock, and values tumbled to record lows as a result.

Now that the yen has fallen to a value of around 96 per dollar, Mazda operations in the US are more profitable and the company now projects it will earn around $279 million for the next fiscal year. Automotive News says a one yen change against the dollar can have a 9.1 percent impact on Mazda operating profit compared to 4.7 percent at Subaru parent Fuji Heavy Industries or 3.1 percent at Toyota. Those automakers better insulate themselves from currency fluctuations with overseas manufacturing facilities.

Mazda's first profit in five years in sight due to weak yen originally appeared on Autoblog on Fri, 05 Apr 2013 13:00:00 EST. Please see our terms for use of feeds.

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Nissan's Ghosn urges Japan's new PM to stabilize yen, patch things up with China

Jonathon Ramsey — Thu, 03 Jan 2013 18:32:00 EST

Filed under: China, Etc., Government/Legal, Japan, Plants/Manufacturing, Nissan, Earnings/Financials

Shinzo Abe was sworn in as Japan's new prime minister - its seventh in six years - barely a week ago. To count him as the seventh PM is a bit disingenuous, in fact, since he was the prime minister in 2006 and 2007 but had to retire due to medical issues. His return came after a campaign that stressed repairing the nation's economic issues - a platform that should give you an idea of the issues Japan has had at the top step of its government. Chief among the nation's woes? An economy still suffering from two decades of deflation and, more recently, a yen that is gaining so bullishly that it's tearing up the china shop.

Yet even before he took office, Renault-Nissan CEO Carlos Ghosn had a message for prime minister Abe: "Please bring [the yen] back to the neutral territory so that we can do our job without a handicap." By "neutral," Ghosn was referring to an exchange rate of one dollar to 100 yen, by "our job" he meant Nissan's ability to build cars for export on the island nation even though Bloomberg posits that it already produces 75 percent of its units outside of Japan.

Above that neutral territory, production in Japan begins to get massively more expensive with every incremental rise in the yen; right now the 100 yen is about $1.15 - and that's after a ten-percent drop over the course of 2012 - and Bloomberg calculates that every single-digit increase in the yen's value against the dollar robs Nissan of $232 million in yearly operating profit. Just down the coast in Toyota City it's even worse - Bloomberg figures each single-digit increase in the yen costs Toyota $402 million every year.

Nissan is one among all the Japanese makers monitoring tensions in China, too. A territorial dispute last year caused Chinese buyers to shun Japanese cars to such an extent that overall car sales fell in China and Japanese automakers cut production and sales forecasts in the world's largest auto market. Ghosn was less pointed in his comments on the matter, saying only that if the antagonism keeps up then "obviously we will have to reflect it in our long-term plans." It was Akio Toyoda's comments, however, that were probably a good reflection of the private wishes of the new prime minister: "I want it to be a peaceful year where nothing goes wrong."

Nissan's Ghosn urges Japan's new PM to stabilize yen, patch things up with China originally appeared on Autoblog on Thu, 03 Jan 2013 18:32:00 EST. Please see our terms for use of feeds.

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Japanese automakers ramping production for renewed American sales

George Kennedy — Wed, 21 Nov 2012 10:01:00 EST

Filed under: Car Buying, Japan, Plants/Manufacturing, Honda, Mitsubishi, Nissan, Toyota

The 2011 earthquake and tsunami that struck Japan took quite the toll on the automotive industry in that nation. Not content to lean on that tragedy as excuse for slagging sales, the Japanese automakers are planning on a major production expansion in North America. The aim is to reclaim the market share lost from the Tsunami-based dip, and overcome a dollar/yen exchange rate that makes exporting to America unprofitable.

Following the Tsunami, Japanese automakers ramped up production in their North American facilities to compensate, but according to Automotive News, Nissan, Honda and others have all reported plans for still-further increased production in the year ahead. As part of this ramp-up, Mazda will open a facility in Salamnca, Mexico before March of 2014. Part of that increase in output is 50,000 units of a Toyota-badged compact car, which Mazda will produce.

Other Mexican production facilities opening include a Honda plant, which will open in Spring 2014 in Celaya, and a Nissan plant, set to open later this year in Aguascalientes. Nissan also said that it will need another plant in North America within the next five years. According to Nissan Boss Carlos Ghosn, the company aims to raise its stake in the US market from 8 percent to 10, and adding production will help achieve that goal. Even Mitsubishi is aiming to boost production at its Normal, Illinois plant. Production of the Outlander Sport is currently at 50,000, which Mitsubishi wants to raise to 70,000.

All of these moves come in reaction to growing demand for Japanese cars, as well as the yen's growing value versus the American dollar. Such a disparity hurts Japanese automakers' ability to make a profit from exporting vehicles. As a result, moving production to the US and Mexico have become the best viable option.

Japanese automakers ramping production for renewed American sales originally appeared on Autoblog on Wed, 21 Nov 2012 10:01:00 EST. Please see our terms for use of feeds.

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Toyota to build Yaris in France for North America

Zach Bowman — Mon, 25 Jun 2012 17:45:00 EST

Filed under: Budget, Sedan, Europe, Japan, Plants/Manufacturing, Hatchback, Toyota

Toyota has already made it abundantly clear the company intends to scale back production in Japan in an attempt to combat the ever-strengthening Yen, and now it looks as if we know one of the ways the automaker plans to do so. Toyota has announced it will manufacture U.S. and Canadian-spec Yaris models in its Onnaing-Valenciennes facility in France. The plant has been producing the Yaris hatchback for European buyers since 2001, though this marks the first time in Toyota history that the automaker has built a vehicle in Europe and imported the model to the States.

North American-spec Yaris models differ slightly from their European counterparts. In addition to using different fascia designs front and rear, the NA model comes available with an automatic transmission and a market-specific 1.5-liter four-cylinder engine. There is some differentiation in safety equipment between the two models as well.

Japanese automakers have recently revealed that building cars in Japan and exporting them around the globe is quickly becoming a money-losing proposition. Honda has made it clear the company is seeking alternatives to producing models like the Fit and CR-Z in Japan due to the high costs associated with exporting the vehicles.

Toyota to build Yaris in France for North America originally appeared on Autoblog on Mon, 25 Jun 2012 17:45:00 EST. Please see our terms for use of feeds.

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Toyota and Nissan to cut Japanese production

Zach Bowman — Mon, 25 Jun 2012 09:59:00 EST

Filed under: Japan, Plants/Manufacturing, Nissan, Toyota

No surprise here. Both Nissan and Toyota have moved to cut production in Japan, according to Reuters.

Nissan has made it clear that it will will drop capacity from the 1.35 million units produced in 2011 to 1.15 million in 2013. In 2012, Nissan expects to produce 1.22 million vehicles in its home country, though production is expected to increase in countries like China, Brazil and Russia to help offset the drop. The report says Nissan has already stopped production on two lines at its Oppama plant, and the manufacturer has plans to stop production of the Tiida in Japan altogether.

The story is much the same with Toyota. The manufacturer has announced that by 2014, it will cut production in Japan by around 10 percent to 3.1 million vehicles. Before the financial crisis, Toyota produced 3.9 million units domestically. But that was when it still made financial sense to build machines in Japan and export them around the world. Japan has seen its currency strengthen against the dollar, making exports less and less financially viable.

Toyota and Nissan to cut Japanese production originally appeared on Autoblog on Mon, 25 Jun 2012 09:59:00 EST. Please see our terms for use of feeds.

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Honda announces Fit production moving to Mexico

Jeremy Korzeniewski — Fri, 30 Mar 2012 13:01:00 EST

Filed under: Budget, Plants/Manufacturing, Hatchback, Honda

The strength of the Yen is forcing many Japanese automakers to consider building cars for export markets outside their home country. Honda is no different, and has confirmed that it will build the Fit hatchback at its new plant in Mexico starting in the spring of 2014.

The plant in Mexico is not the only location where Honda will build the Fit, but it will be used to supply the small hatchback to the large United States, Mexican and Canadian markets. Honda expects to build up to 200,000 subcompact vehicles per year at its plant near Celaya, Guanajuato.

Honda already builds a huge number of vehicles in North America. In fact, as pointed out in the press release after the break, more than 85 percent of the Honda and Acura models sold in America were built in the United States, Canada or Mexico. What's more, the addition of the Fit to the Accord, Civic, and CR-V means that all four of Honda's global nameplates will be produced in North America.

Continue reading Honda announces Fit production moving to Mexico

Honda announces Fit production moving to Mexico originally appeared on Autoblog on Fri, 30 Mar 2012 13:01:00 EST. Please see our terms for use of feeds.

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Infiniti moving production out of Japan to counter strong yen

Jeremy Korzeniewski — Mon, 19 Dec 2011 18:28:00 EST

Filed under: Japan, Plants/Manufacturing, Infiniti, Nissan, Earnings/Financials

Being a global automaker means having to deal with the rising and falling tides of currency. The climate is particularly difficult in Japan, where the yen is valued at record levels compared to the American dollar. Since a giant chunk of Japanese automotive exports are shipped off to America, that means greatly diminished profits.

As of the end of 2011, Infiniti, Nissan's in-house luxury marque, doesn't build any vehicles outside of it home country of Japan, though the QX full-size SUV was built in the United States for a time. That's all about to change, however, starting with the Infiniti JX crossover that's slated for production in early 2012 in Smyrna, Tennessee.

Soon, more models will be built outside of Japan. "As cars come up for renewal, generally they're being relocated in a function of where the majority of sales are," said Andy Palmer, executive vice president of Infiniti, speaking to Automotive News. We'd guess, then, that the upcoming small hatchback from Infiniti, which is said to be inspired by the Etherea Concept, will be built in Europe.

Even models that continue to be assembled in Japan - important, says Palmer, because, "Part of the myth of Infiniti is Japanese craftsmanship..." - will feature more parts imported from outside the country. Currently, Infiniti averages about 15 percent imported parts content for vehicles assembled in Japan, but the automaker is targeting a new goal of 65 percent "non-yen" content.

If production outside Japan goes well, expect the trend of Japanese brands building more and more vehicles beyond its borders to continue as automakers look to bolster profits in the face of a strong yen. "Somebody in this industry has got to demonstrate that you can make luxury outside of Germany and Japan successfully over time," concludes Palmer. We're guessing he doesn't mean Cadillac...

Infiniti moving production out of Japan to counter strong yen originally appeared on Autoblog on Mon, 19 Dec 2011 18:28:00 EST. Please see our terms for use of feeds.

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Toyota urges suppliers to slash prices or be left behind

Chris Shunk — Mon, 10 Oct 2011 16:31:00 EST

Filed under: Government/Legal, Japan, Honda, Nissan, Toyota, Earnings/Financials

For years, Detroit automakers would argue that the Japanese yen was artificially devalued, and that the value of the currency was a big competitive advantage to the likes of Toyota and Honda. To erase this gap, The Detroit Three pressured suppliers to lower costs in any way possible, which caused ill-will within their supply bases. In fact, Japanese automakers routinely scored higher in supplier relation studies, while General Motors, Ford and Chrysler hovered at the bottom of the list.

One massive global recession and a fast-rising yen later, it appears that the shoe is on the other foot. Automotive News reports that Toyota has made it clear to its 219 largest domestic suppliers that costs must be cut or business will be lost to countries with cheaper labor.

Toyota reportedly loses $343 million in profit for every one yen the currency rises against the dollar. Given that the Japanese currency has risen by 13 versus the dollar over the past year, Toyota could be looking at a staggering $4.5 billion in losses. For perspective, that's more than half of Toyota's total research and development spending for any given year. Ouch.

And Toyota isn't alone in looking for ways to combat the rising yen. Honda recently announced that it was going to build more vehicles outside of Japan. Nissan CEO Carlos Ghosn recently asked the Japanese government to adjust the issue of the rising yen, or risk losing a great deal of the country's industrial base.

Given its currency conundrum, we can't blame Toyota for looking for more cost-effective ways to build vehicles. But when GM, Ford and Chrysler were in the same predicament, corners were cut and many vehicles were less competitive than they could and should have been. As a result, The Detroit Three had to add heavy incentives just to move product and their reputations suffered. Here's hoping history doesn't repeat itself.

Toyota urges suppliers to slash prices or be left behind originally appeared on Autoblog on Mon, 10 Oct 2011 16:31:00 EST. Please see our terms for use of feeds.

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Toyota opens first new plant in Japan in almost 20 years

Jeff Glucker — Fri, 18 Feb 2011 07:59:00 EST

Filed under: Japan, Plants/Manufacturing, Toyota

The Yen is soaring, and that means it's costing Japanese manufacturers a lot of money to sell goods here in the United States. Some are moving areas of production to other countries, yet Toyota has decided to open its first new Japanese manufacturing facility in nearly 20 years.

Toyota's newest facility is called the Miyagi factory and it sits 160 miles north of Tokyo. Currently, production there is limited to work on the Yaris, but Toyota plans to add two more compact vehicles by April.

This new facility is designed to cut energy demand and speed up production efforts. Cars are positioned parallel to each other on the line rather than nose to tail. This allows work to be done on both the front and rear of the vehicles simultaneously. Time on the assebmly line has been cut 35 percent because of this move.

Changes to production and facilities, like the ones employed in the new Miyagi factory, will help Toyota reduce its capital spending by as much as 40 percent. A huge savings for a Japanese manufacturer that's patiently waiting for the U.S. Dollar to play catch up with the Yen.

[Source: Reuters]

Toyota opens first new plant in Japan in almost 20 years originally appeared on Autoblog on Fri, 18 Feb 2011 07:59:00 EST. Please see our terms for use of feeds.

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Japanese automakers revise earnings estimates on strength of Yen

Jeff Glucker — Thu, 28 Oct 2010 07:59:00 EST

Filed under: Japan, Nissan, Toyota, Earnings/Financials

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]

Japanese automakers revise earnings estimates on strength of Yen originally appeared on Autoblog on Thu, 28 Oct 2010 07:59:00 EST. Please see our terms for use of feeds.

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Report: Toyota president assuages fears that he's closing all Japanese factories

Jeremy Korzeniewski — Tue, 19 Oct 2010 18:01:00 EST

Filed under: Japan, Plants/Manufacturing, Toyota, Earnings/Financials

Toyota President Akio Toyoda caused something of an uproar in the automaker's home market of Japan when he suggested that "logically, it doesn't make sense to manufacture in Japan." Why? The surging value of the Yen, currently at a 15-year high, compared to the U.S. Dollar.

Considering that the vast majority of vehicles Toyota builds in Japan are intended for export and that the American market is still the automaker's most important, the value of the Yen is a major stumbling block standing in the way of profits. Still, Toyoda has confirmed that his eponymous company has no intention of entirely halting production in Japan.

What that assurance doesn't mean, however, is that Toyota won't continue to shift production overseas in an effort to retain profitability. While none of the Japanese plants will be completely closed, they may see a good portion of their output transferred to facilities in other markets... notably North America.

[Source: Just-Auto]

Report: Toyota president assuages fears that he's closing all Japanese factories originally appeared on Autoblog on Tue, 19 Oct 2010 18:01:00 EST. Please see our terms for use of feeds.

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Toyota reportedly cutting Prius price to match Honda Insight in Japan... will U.S. follow?

Noah Joseph — Thu, 02 Apr 2009 14:20:00 EST

Filed under: Hybrid, Green, Japan, Toyota

2010 Toyota Prius - Click above for a hi-res gallery

Toyota may have gotten used to being the leader in the hybrid sedan segment, but the Japanese auto giant didn't get to where it is today by failing to see the writing on the proverbial wall. With arch-rival Honda having priced its new Insight hybrid lower than the current Prius, Toyota is responding in kind by dropping its domestic market sticker price on the upcoming new Prius to match.

According to reports coming out of Japan, Toyota recently notified its JDM dealers that the price for the new Prius would be set at 2.05 million yen, which equates to about $20,750 in U.S. Dollars. On this side of the Pacific, the Honda Insight went on sale last month with a starting price of $20,470, putting the two on equal footing price-wise, while the Prius arguably brings more to the table with more space and better fuel economy. A fully-loaded new Prius can quickly reach above $30k, indicating that Toyota hopes to lure away buyers with the low sticker price in the hope that they go for pricey options. But in a double-pronged attack, Toyota intends to keep the outgoing Prius on the Japanese market at a significantly reduced price of 1.89 million yen ($19,130). Pricing for the United States has yet to be announced, but if Toyota follows the same model here as it reportedly has in its home market, the fight could get very aggressive.

Gallery: Detroit 2009: 2010 Toyota Prius

Gallery: 2010 Toyota Prius

[Source: Automotive News - subs. req'd]

Toyota reportedly cutting Prius price to match Honda Insight in Japan... will U.S. follow? originally appeared on Autoblog on Thu, 02 Apr 2009 14:20:00 EST. Please see our terms for use of feeds.

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Honda could move headquarters outside of Japan

Jeremy Korzeniewski — Mon, 22 Dec 2008 19:01:00 EST

Filed under: Government/Legal, Japan, Honda, Earnings/Financials

Corporate posturing or not, Honda's Takeo Fukui made his opinions perfectly clear regarding the Japanese government's recent lack of currency manipulation. Fukui, CEO of Honda Motor Co., suggested that the yen's rise in value relative to the currency in the United States and Europe is causing major damage to the automaker, and he's willing to take drastic measures to stop the hurt, including relocating the automaker's corporate headquarters to another country. Other possible actions include a major reduction in workforce, including the type of permanent lay-offs that the automaker has typically avoided in the past, as well as moving more production out of Japan and into overseas markets.

Fukui might get exactly what he wishes for, as many economists are predicting that the yen will sink in value in relation to the dollar within the next few days. If not, many, like Fukui, are calling on the Japanese government to step in and devalue its currency for the first time in four years. Thanks for the tip, BenS!

[Source: Japan Probe]

Honda could move headquarters outside of Japan originally appeared on Autoblog on Mon, 22 Dec 2008 19:01:00 EST. Please see our terms for use of feeds.

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Lexus IS-F sales begin 12/25 with 417 HP underhood

John Neff — Thu, 04 Oct 2007 09:55:00 EST

Filed under: Car Buying, Sedan, Japan, Lexus

click above image to view more high-res photos of the Lexus IS-F

Merry Christmas, says Lexus, which announced today that its hopped up entry-level luxury sedan will go on sale Christmas Day in Japan. Also unknown until now is the exact horsepower rating of the car's 5.0L V8, which has been revealed as 311kW, or 417 horsepower when converted from kilowatts, at 6,600 RPM. Meanwhile, torque is pegged at 372 ft-lb at 5,200 RPM. The 4.968L engine features variable valve timing on the intake side of things, as well as both direct and port fuel injection systems, which is interesting and a little confusing. We'll leave it to an engineer to explain that one. As we already knew, however, the engine's power will be divided up into tiny pieces by an 8-speed automatic sourced from the Lexus LS 460. Pricing starts at ¥7,600,000 or $65,170.00 USD when converted. Perhaps if you've been good this year, Santa will drive an IS-F all the way from Japan and park it under your tree. If not, you'll have to wait for its impending U.S. arrival like the rest of us.

Check out Toyota's full press release after the jump.

[Source: Lexus via MT forums]

Gallery: Lexus IS-F

Continue reading Lexus IS-F sales begin 12/25 with 417 HP underhood

Lexus IS-F sales begin 12/25 with 417 HP underhood originally appeared on Autoblog on Thu, 04 Oct 2007 09:55:00 EST. Please see our terms for use of feeds.

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Yen vs. Dollar/Euro: Both US and European automakers feeling the pinch

Chris Shunk — Mon, 26 Feb 2007 09:24:00 EST

Filed under: Budget, Earnings/Financials

Most people looking to purchase a Toyota or Nissan just don't care about the value of the Yen vs. the Dollar. It just isn't relevant. For automakers here and in Europe, however, it's a very big deal. The Auto Trade Policy Council estimates a Japanese auto manufacturer advantage of $9,000 on luxury vehicles imported from Japan and $2,000 on lower-end imports. Japanese manufacturers have smartly used the imbalance to add content to their products while maintaining the price of their competition. Customers are getting more for their money and Toyota, Honda and company are getting lauded for high quality materials.

The Yen is worth less than the Dollar because the current national interest rate in Japan is .5 percent, close to what the rate was in the US only a couple years ago. Right now, however, the US interest rate is at 5.25 percent. In Europe, the rate is 3.5%. Investors borrow Yen at low rates then sell the currency and put the money into higher interest accounts like US treasury bonds. As a result, the yen is devalued by up to 25% and Japanese goods are cheaper for Americans.

[Source: Detroit Free Press]

Continue reading Yen vs. Dollar/Euro: Both US and European automakers feeling the pinch

Yen vs. Dollar/Euro: Both US and European automakers feeling the pinch originally appeared on Autoblog on Mon, 26 Feb 2007 09:24:00 EST. Please see our terms for use of feeds.

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Toyota posts higher than expected quarterly profits

John Neff — Fri, 04 Aug 2006 06:57:00 EST

Filed under: Toyota, Earnings/Financials

Toyota has just released its earnings report for the quarter spanning April through June and the Japanese automaker has posted an operating profit of $4.45 billion. Toyota's profits even beat the optimistic projections of most analysts. Its North American outfit accounted for a little over $1.2 billion of the company's quarterly profit.

These numbers will no doubt be heavily compared to General Motors' unadjusted loss of $3.2 billion last quarter and Ford's $254 million loss. Though GM's loss appears to be horrific, the one-time cost of buying out 30,000 employees and other special items account for most of the red ink. Minus those items, GM actually posted a profit of $1.2 billion that also beat analysts expectations and sent its stock surging. Ford, however, whose Way Forward Plan was expected to produce a modest profit last quarter, is being forced to redouble its turnaround efforts after the unexpected loss.

[Source: Reuters]

Toyota posts higher than expected quarterly profits originally appeared on Autoblog on Fri, 04 Aug 2006 06:57:00 EST. Please see our terms for use of feeds.

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GM's Wagoner joins chorus blaming weak yen

Eric Bryant — Thu, 08 Jun 2006 08:59:00 EST

Filed under: Government/Legal, Japan, Earnings/Financials

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]

GM's Wagoner joins chorus blaming weak yen originally appeared on Autoblog on Thu, 08 Jun 2006 08:59:00 EST. Please see our terms for use of feeds.

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Yen rate gives Japanese automakers unfair advantage, Chrysler's LaSorda says

Erin Mays — Sat, 03 Jun 2006 15:04:00 EST

Filed under: Trends, Government/Legal, Japan, Chrysler, Earnings/Financials

At the Mackinac Policy Conference in Michigan on Thursday, Chrysler president and CEO Tom LaSorda said he plans to call on George W. Bush to confront Japan about an artificially low yen rate that he maintains unfairly allows Japanese automakers up to a $3,000 advantage per vehicle over their American counterparts. 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.

LaSorda drew attention to the 1.8 million Japanese vehicles that are still being imported into the United States, and although this number has decreased since years past, parts imported from Japan continue to exacerbate the issue.

[Source: Reuters]

Yen rate gives Japanese automakers unfair advantage, Chrysler's LaSorda says originally appeared on Autoblog on Sat, 03 Jun 2006 15:04:00 EST. Please see our terms for use of feeds.

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Japanese automakers fuelling record profits with new models

Stuart Waterman — Sat, 22 Apr 2006 16:07:00 EST

Filed under: Car Buying, Trends, Acura, Honda, Infiniti, Nissan, Toyota, Earnings/Financials

According to a Reuters report, Japan's five major automakers are set to post record profits as they prepare to close out their 2005/2006 fiscal year. While the depressed value of the yen has played a role in boosting profits for Japanese companies, there remains a strong link between new product launches and automaker profits, with Nissan posting the weakest Q4 results among Japanese automakers, with no new models in the all-important U.S. market.

The report forecasts continued growth for Toyota, Nissan and Honda for at least two years, with the biggest gains in the U.S. Key products in the Japanese new model pipeline:

Toyota's new Camry, America's best-selling car has just launched, and its new Tundra pickup is due in early 2007 .
Honda will launch three new crossovers (the CRV and Acura's RDX and MDX) this year.
Nissan has fresh versions of the Sentra and Altima sedans, along with the Versa and Infiniti's G35

Expect political pressure on the Japanese government to raise the value of the yen, but don't look for that to have a big impact on sales of their cars Stateside as long as Toyota et al can continue to surf a wave of successful product launches.

[Source: Reuters]

Japanese automakers fuelling record profits with new models originally appeared on Autoblog on Sat, 22 Apr 2006 16:07:00 EST. Please see our terms for use of feeds.

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