Thursday, November 26, 2009

Japanese Automakers Facing Tough Time due to Dollar Fall against Yen

Japanese automakers are facing a tough time ahead as dollar is struggling against yen over the last few months. Among the automakers, Toyota is thought to be the worst sufferer. Dollar fell down to a record low (in 14 years) of 86.29 yen recently and this indicates that the situation could be deteriorated in future. Euro is comparatively in strong position and this could be a positive sign for the automakers.

Reuters reported:

Toyota lost 1.2 percent, slightly more than falls of 1.1 percent in Honda and 0.5 percent in Nissan, but better than Mazda Motor Corp (7261.T), which fell 2.1 percent. The transport sector subindex .ITEQP.T lost 1.2 percent.

Global auto market is gradually improving since last quarter as economic recession is almost over and government stimulus also helped few automakers. However, now it seems that bad days of Japanese automakers have not gone yet. Reports also have it that dollar rate against yen could decrease further next year. So, companies like Nissan, Honda and Toyota could face a tougher time in the months to come.