In this installment of "As the Yen Skyrockets," Autocar
is reporting that the introduction of the long-awaited Subaru Impreza
diesel has been delayed indefinitely due to unfavorable exchange rates. A source inside International Motors, the firm that imports Subarus
into the UK, told Autocar
, "At the current rate we would have to charge vastly more than we can justify for the diesel Impreza
if we were to make a profit. As a result we can't guarantee when the car will go on sale as we can't predict when the economy will change."
are facing the same problem, with Honda CEO Takeo Fukui going so far as to threaten moving Honda's headquarters outside of Japan
. Analysts predict that the yen could begin to sink in the coming weeks, but if the market doesn't correct itself, the Japanese government might have to intervene and begin devaluing its currency.