,!doctype html public "-//W3C//DTD HTML 4.01 Frameset//EN" "http://www.w3.org/TR/html4/frameset.dtd"> The One Trillion Yen Question to Ask Japanese Prime Minister Abe During His Visit to Washington
The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

The One Trillion Yen Question to Ask Japanese Prime Minister Abe During His Visit to Washington


PHOTO

WASHINGTON, April 25, 2007; Automotive Trade Policy Council President Stephen Collins issued the following statement:

"When Japanese Prime Minister Shinzo Abe visits Washington, DC this week, we hope he is asked the one trillion yen question:

"When will the Japanese Government trim its excessive and systemic currency reserves and trade surpluses to bring the yen into proper alignment with the dollar?

"One trillion (actually 1,043,703,665,299.36) yen equals $8.8 billion - the total subsidy to Japanese automakers for the 2.2 million vehicles Japan exported to the U.S. in 2006 resulting from Japan's weak yen policy. At 118Y to the dollar, Japan's yen subsidy provides the average imported Japanese car a $4,000 windfall cost advantage over U.S. automakers - a windfall that ranges up to $10,000 per vehicle for higher-end Japanese imported SUVs such as those sold by Toyota under the Lexus brand.

"A Peterson Institute for International Economics report released in March by 30 leading economists calls for an increase of 25-30 percent in the value of the yen to 90 yen/dollar to address 'large and unsustainable imbalances in current account practices.' The report sees such imbalances as one of the principal dangers facing the world economy today and urges policymakers to take action 'to reduce the risks of a crisis that could produce a world recession.'

"Not only does the artificially low yen give Japanese automakers an unfair advantage over American automakers, it has also helped fuel our trade deficit with Japan. Nearly two-thirds of that $88 billion deficit last year was exclusively a result of the automotive trade.

"The Automotive Trade Policy Council, whose members include General Motors, Ford and DaimlerChrysler, urges the Bush Administration to join other leading G7 countries in urging Prime Minister Abe to let the Japanese yen grow stronger."

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