Domestic Auto Companies Press for Action on Yen
October 24, 2007

Against the backdrop of the Tokyo Motor Show, Detroit automakers and some of their suppliers are sounding the alarm over the value of the Japanese yen. They charge that Japan is manipulating its currency and are encouraging global economic powers to pressure Japan to boost the value of the yen. They argue that Japan’s weak currency versus the U.S. dollar is dangerous to worldwide financial markets.

GM, Ford and Chrysler complain the value gives Japanese competitors an advantage in the U.S. of $4,000 to $10,000 per vehicle.

"The yen's behavior defies economic explanations," G. Mustafa Mohatarem, GM's chief economist, said at a briefing Tuesday reported on by the Detroit Free Press. "To me, there is absolutely no doubt that Japan has been managing its currency."

He said of the $90-billion trade deficit with Japan expected for all of this year, about 62 percent is expected to come from autos and auto parts.

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