In a speech given to an Economic Club of Chicago luncheon held in conjunction with the Chicago Auto Show media preview, Ford Motor Company’s president for the Americas Joe Hinrichs criticized Japan and Toyota in particular for benefiting from currency manipulation. Hinrichs said Ford would “urge Congress to oppose a TPP [Trans-Pacific Partnership currently being negotiated.] if it does not include strong currency disciplines.”
Speaking to Automotive News after his talk, Hinrichs said
“When Toyota came out and said half their profits are due to currency change of the yen, that’s a big deal. When [Toyota President] Akio [Toyoda] came out in support of [Japanese Prime Minister Shinzo] Abe saying we need a weaker currency, that’s a corporate policy statement.”
The yen has lost almost a quarter of its value against the U.S. dollar over the past year. Toyota estimates that for every yen of value the Japanese currency loses against the U.S. dollar its operating profit goes up by 35 billion yen.