Detroit 3: Japan’s currency policy “unacceptable” image

A trade group representing GM, Ford and Chrysler opposes efforts by Japan’s new goverment to devalue the yen and asked the Obama administration to take attitude.

U.S. automakers have long criticized Japan for using trade and currency policies to restrict access to the Japanese market, which they call one of the most closed in the world. This is why The Detroit Three opposed allowing Japan to enter free trade talks for creating the Trans-Pacific Partnership free trade zone.

“Here we go again. Japan’s Liberal Democratic party is back in power and determined to repeat the ‘beggar thy neighbor’ policies that distort trade by cheapening the value of the yen to promote economic growth in Japan at the expense of its trading partners,” Matt Blunt, president of the American Automotive Policy Council that represents General Motors, Ford and Chrysler on trade policy, was quoted as saying by the Detroit News.

„We urge the Obama Administration to make it clear to Japan that such policies are unacceptable and will be met by reciprocal measures,” Blunt added. However, Japanese automakers have long argued the yen is still overvalued and have threatened to move more production out unless the yen declined in value. A strong yen makes Japanese exports more expensive and foreign imports to Japan less expensive.

  • maokim

    Companies that received government bailouts shouldn't be talking about "distorting trade"

  • Mao Kim

    Companies that received government bailout have no right to talk about "distorting trade". Detroit needs to stop whining and make cars that people actually want.

  • Laurance Marvin

    US Automakers are totally wrong…the yen is over valued ! Grossly. If this were 1985 when the yen was at 250 yen to the dollar then maybe there would be a case. Factually US protectionism in the mid 1980's also combined with US Policy over 25 years to make China dominate world power and under valued currency. It is a shame that Detroit can never be competitive in any market at any price. This is again proof that the "currency war" that the US Federal reserve and US Treasury started has been ongoing and distorting economic reality!