There was a time, in summer of 2007, when a dollar bought more than 120 yen. Once you arrived in Tokyo, you quickly wished it would have bought more. Now, the dollar buys about a third less. The dollar/yen rate had been at a downward trajectory since that summer of 2007. What made the yen really expensive was a company called Lehman Brothers, and the fallout following their bankruptcy in 2008. For inexplicable reasons, the yen is seen as a safer currency than the greenback. Should you make the mistake of stepping off the plane with Euros in your pocket, you would be in for an even bigger shock. In July 2008, a Euro bought 170 yen. Now, it’s down to 109. For even more inexplicable reasons, some mentally unstable people still talk about an undervalued yen.
You may not travel to Tokyo frequently enough to give a hoot. But Japanese auto manufacturers don’t want to take it any more.
Still convinced that the Yen is undervalued? Japanese carmakers beg to differ. They think the Japanese currency became so expensive that it gets cheaper for them to build abroad and to import to Japan. We’ve reported that Nissan is moving the production of their Micra (called March in Asia) to Thailand. When they did this, The Nikkei [sub] saw “huge implications for the future of the Japanese auto industry as a whole.” It certainly looks like Nissan’s exodus to the Land Of Smiles ( and occasional riots) started a trend.
If anybody will again blather about a “weak yen” that has been “manipulated by the Japanese government,” then I’ll personally come visit, with the intent to insert a sock in the mouth. For reasons explicable only to forex mavens, the currency of the economic basked case Japan keeps on getting stronger. Japan’s car manufacturers think this will continue, and they are taking precautions. More precisely, they are taking production out of Japan.
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- MaintenanceCosts A bit after that experience, my family ended up owning an '88 Accord and an '87 Taurus--Detroit's big triumph--at the same time. The win for the Accord wasn't total; the Taurus's engine was better and it was quieter. But the difference in build quality and refinement can't be overstated.There were no rattles in the Accord, the materials are to this day some of the best in any car I've ever owned, every control operated with precision and just the right feel, and the ergonomics were perfect. By contrast, the Taurus was full of rattles from the day we got it, had hard plastic and slapdash fits all over the interior, had mouse-fur upholstery that showed wear by 60k miles, some parts of the control layout were nonsensical, and my car had a number of obvious assembly defects (including silver front bumper paint that all peeled off within five years). The cars' records in service also contrasted dramatically; the Taurus's lower purchase price (as a used car with similar mileage) was totally offset within a few years by higher repair costs.The thing that really puts an exclamation point on the contrast between the two cars is just how much better the Taurus was than its Fox-based predecessors.
- Art Vandelay I am sure somewhere, somebody is saddened by this.
- Dukeisduke It's becoming the norm for cats to be moved out of state for sale, and even out of the country. The thieves are looking for the easiest places to get rid of them, as laws tighten down in some places. Here in Texas, catalytic converter theft became a felony last September 1, so the stakes are going up.A couple months back, an off-duty Harris County (Houston) sheriff's deputy leaving a grocery store was murdered in the parking lot by a thief that was in the process of stealing the cat from his truck. As far as I know, they're still looking for the suspect, who would be charged with capital murder, and subject to the death penalty.
- Dukeisduke Here's a real horror story: A friend of mine that's a commercial wallpaper installer owned an '09 Tundra, and had his cat stolen while he was working on a job in Dallas. He would normally have driven his work truck (an '03 Silverado with a zillion miles on it, and one engine replacement), but it was out of commission that day.At the end of the day when he got in the truck and started it, he noticed the noise, *and* saw smoke and flames. The thief had somehow cut or nicked the fuel line, causing gas to spray out. The truck burned to the ground in just a few minutes.He replaced it with a '19 Tundra, and the dealer installed a steel plate attached to the frame rails below the cats, and it's riveted (or maybe security bolts?) to the rails (I only saw it after dark, so I didn't get a really good look). He said the plate cost $750 to install. He says he'll never take the new one to work.
- Dukeisduke I'll probably own some kind of EV someday, but I don't see it happening in the near future. Any kind of really large scale production is going to be hindered by the availability of rare earth minerals, so I don't see EVs taking over anytime soon, despite the wishful thinking of some folks. Instead, people in urban areas will be "encouraged" (shamed) into riding public transportation, and for people that live further out, or in the country, will still mainly drive ICE vehicles.I don't have anything against EVs, I just think the hype is overblown.Speaking of Dodge, I was watching the "Roadkill Nights" stream on Motortrend+ on Saturday, and Tim Kuniskis was interviewed live, and said there was a huge announce coming about the future of Dodge muscle, at the Woodward Cruise this weekend. I assume it'll be something about EVs. By the way, it was mentioned after the interview that Kuniskis started his career working as a service technician at a Dodge dealership. I'd never heard that before.