U.S. Automaker CEOs: Congress Should Address Skewed Japanese Yen

by: iverpenn
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Chief Executive Officers of DaimlerChrysler USA, Ford Motor Company and General Motors Corporation inspirited the Congress a couple of days ago to tackle the vital concern on the skewed and undervalued Japanese yen at a “Manufacturing Summit” conducted by the U.S. Senate Democratic Policy Conference on Capitol Hill.

 

Alan Mulally, President and CEO of Ford Motor Company, said during the forum that through an open market, the values of the different currencies should be impartially determined and not pre-determined by the governments. He further said that China is the recent focus, making Japan most troubled to the automotive industry. He added that the American government needs to mandate the Japanese government in order to allow the yen reach its true value again since its skewed yen is one of the reasons of a large deficit in the auto sector with the United States.

 

President Stephen Collins of the Automotive Trade Policy Council (ATPC) said that almost all major currencies, excluding the yen had appreciated tremendously against the dollar. In effect, the Japanese yen has extremely diluted - in contrast to the status of the global financial markets - against the dollar and other major industrialized currencies.

 

Collins added that a serious destruction and disruption to American automakers is being caused by the misaligned yen. In 20 years, the Japanese yen has now reached its lowest value. He explained that the devaluated yen drives billions of subsidized dollars into Japan’s car companies that results to direct boosting of Japan’s exports vehicle and parts. The long run effect, Collins further explained, is that Japan’s car, truck and SUV exports to the U.S. will be rushing with the aim to reach 2.5 million vehicles this year.

 

The CEOs of DaimlerChrysler USA, Ford and General Motors made clear in the forum with the Congress that they profoundly support Senator Debbie Stabenow’s legislation - S. 1021.

 

The legislation requires the US Treasury to bilaterally take aggressive action – that would reach the international level - to properly realign the Japanese yen with the other major OECD nations.

 

Collins concluded that the Congress is making a considerable action on this matter that the resolution, in whatever way, of the misalignment of the yen is one of the major elements of assuring US competitiveness in the auto industry.

 

About Automotive Trade Policy Council, Inc. (ATPC)

 

A Washington, D.C. - based non profit trade association, the Automotive Trade Policy Council, Inc. (ATPC) represents the common international economic, trade and investment interests of its member companies: DaimlerChrysler Corporation, Ford Motor Company and General Motors Corporation.

 

About General Motors Corporation

 

Also known as GM or GMC, General Motors Corporation is the 2^nd (after Toyota) largest car company based on sales revenue as of 2007. Maker of quality cars and their parts, GMC has around 284,000 employees all over the world.

 

It was founded in 1908, in Flint, Michigan and has global headquarters located at the Renaissance Center in Detroit, Michigan, USA. In Zurich, Switzerland is their European headquarters. This American car maker produces its trucks and cars in 33 countries.

 

GM cars and trucks are sold under Buick, Cadillac, Chevrolet, Daewoo, GMC, Holden, Hummer, Opel, Pontiac, Saab, Saturn and Vauxhall brands.

 

GM Parts like GMC grille insert and accessories are known in the market under GM Performance Parts, GM Goodwrench and AC Delco brands through GM Service and Parts Operations that supplies GM dealerships and distributors all over the world. The United States is GM's largest national market. This is followed by China, Canada, the United Kingdom, and Germany.

 

GM is the number 1 automaker when it comes to Strategic Vision's Total Quality Index (TQI).

 

About Ford Motor Company

 

Ford Motor Company is an American multinational corporation. Based on the world wide vehicle sales, it is the third largest automaker all over the world after leaders Toyota and General Motors.

 

Ford was the second-ranked automaker in the US with a 17.5 percent market share, after General Motors with 24.6 percent but ahead of Toyota with 15.4 percent and DaimlerChrysler with 14.4 percent. This was according to the 2006 records. In 2007, Ford was the seventh placer among different American-based companies in the Fortune 500 list. This was based on global revenues that amounted to $160.1 billion.

 

Headquartered in Dearborn, Michigan, a suburb of Detroit, the auto company was founded by Henry Ford and incorporated in June 16, 1903. Its global brands include Lincoln and Mercury of the US, Jaguar and Land Rover of the UK, and Volvo of Sweden. Ford also owns a Mazda controlling interest amounting to one-third controlling.

 

Aside from producing quality products, Ford has been one of the ten largest corporations around the world in terms of revenue.

 

About DaimlerChrysler

 

A German car corporation, DaimlerChrysler is the fifth largest car manufacturer in the world. It produces cars and trucks under different brands such as Chrysler, Dodge, Jeep, Mercedes-Benz, Smart, Maybach, Mopar and GEM.

About the Author

Iver Penn is a Mass Communications graduate who hails from Wyoming.  She is at present an associate editor of a publishing company in Colorado.

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