What is the effect of a misaligned yen on the U.S. auto industry?
The impact of the Japanese government actively maintaining an artificially low yen is a fundamental competitive factor for the entire U.S. auto and auto parts industry. The misaligned yen is giving the average imported Japanese car a $4000 windfall cost advantage over U.S. automakers and other competitors in the U.S. market. This yen subsidy’ also crosses over to Japanese vehicles made in the U.S. because of the high level of imported and subsidized auto parts used in their U.S. based plants.
