How big of a factor is the weak yen in supporting Japanese auto exports?
The Japanese government’s policy is to stimulate Japan’s economy via export growth. Thanks to the weak yen, more than half (52%) of all automobiles manufactured in Japan in 2006 were produced for export to other countries, exceeding 50% for the first time in 19 years. In fact, even as demand within Japan for new autos declines, Japanese companies are adding production capacity to Japan-based facilities, reactivating assembly lines, adding workers and postponing planned factory closures as they move to export ever greater numbers of vehicles.
