Tag: Dollar

By on May 2, 2015

volkswagen-chattanooga-solar-park-08

Even with a depressed euro and sales falling 2.7 percent in April, Volkswagen is staying the course.

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By on January 23, 2014

Toyota Baja California Assembly Line

As the yen weakened against the dollar for a second consecutive year, Honda, Nissan and Toyota all set production records in their North American plants in 2013, according to Automotive News.

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By on January 17, 2012

Everybody is talking about how much the Euro is losing against the dollar. At closer look, it is not alarming. Even during normal times I have seen lower Euro rates than the current $1.27. But wait until you look at the Euro from a Japanese perspective. (Like the one I have at the moment, sitting in a pittoresk cabin half way up Mount Fuji that could use better heat.) The anemic euro might discourage people like me from coming to Japan. What it really does is discourage Japanese automakers from exporting to Europe. A lot has been said about the strength of the Yen against the dollar. It’s nothing compared to the Euro. Against the Euro, the yen turned into Godzilla. This has Japanese automakers extremely worried. They don’t really know what to do about it. (Read More…)

By on November 30, 2009

Maybe they should have kept the price higher? (courtesy:tsikot.com)

Japans currency rose to a 14-year high against the dollar last week, prompting fears that the island nation’s exports could be dramatically affected. And no firm stands to lose as much Toyota, which had been operating under the highest assumed exchange rate of any of Japan’s auto exporters. Reuters reports that ToMoCo had pegged the rate at 90 yen to the dollar, some five yen higher than rivals Honda and Nissan. With the Yen trading at 86.29 to the dollar, that assumption could add up to big losses: Toyota reckons that for every one yen drop against the dollar, operating profits will decline some 30b Yen due to the fact that it exports over half of its Japanese-made automobiles, most of which head to market in the US. Aizawa Securities analyst Toshiro Yashinaga explains that Toyota, more than any other Japanese firm, is riding the razor’s edge.

Carmakers that issued big profit warnings last year have set cautious forex assumptions this time, so roughly speaking the current rates are within expectations. But there are views that the dollar could sink even further in 2010, to the 70s (yen), and in that sense Honda and Nissan, which are relatively strong in emerging markets, are in the winning camp

Japan’s government has thus far resisted calls to intervene in the Yen’s exchange rate. As if Toyota’s heavy exposure to the moribund US market weren’t bad enough, exchange rate uncertainty could make Toyota’s second-straight loss even worse than expected when the firm announces its fiscal year-end results in March.

Recent Comments

  • Re: Junkyard Find: 1998 Audi A8

    CoreyDL - Oh good grief. Hopefully he had so much money that they gave him the replacement for free, under threat of lawyers.
  • Re: Junkyard Find: 1998 Audi A8

    Brumus - In about 18 months this post will likely be exhumed by someone writing in halting English who claims to have driven one of these for 285,000 kilometres with no issues...
  • Re: Junkyard Find: 1998 Audi A8

    CoreyDL - The 98+ A6 is known even amongst Audi models as being particularly bad. I would avoid it at all costs.
  • Re: Ask Bark: Should I Lease a Jetta?

    28-Cars-Later - “Should I Lease a Jetta?” No. Btw how do you go from straight Japanese to VW? No seriously how does that even happen? @Bark “I mean,...
  • Re: Junkyard Find: 1998 Audi A8

    Russycle - I have to say I really like the A6 and have thought about picking one up several times. Your post is reminding me of my Jaguar experience, and the two Japanese cars...
  • Re: Automotive News Late, Wrong On Cadillac XTS De-Livery News

    John - This “We’ll show our fancy pants car in a bad neighborhood” advertising is designed to convey the message “Buy our...
  • Re: Junkyard Find: 1998 Audi A8

    CoreyDL - I’m plenty familiar with Audi from my early and formative car purchases. Because I had a 5000S as my first car, which I replaced with a ’93 90S, with a...
  • Re: Junkyard Find: 1998 Audi A8

    28-Cars-Later - Very possibly. Granted there was a war going on but I find it sick they kept building a model they knew would catastrophically fail in a relatively short time....
  • Re: Junkyard Find: 1998 Audi A8

    dal20402 - This site: http://www.motortrend.com/cars /1998/audi/a8/specifications/ says the 1998 A8 had a 3-year, 50,000-mile warranty.
  • Re: Junkyard Find: 1998 Audi A8

    PartsUnknown - I wonder how many miles they got out of the washer fluid pumps…

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