Ford CEO Alan Mulally said that Japan is a currency manipulator offering local exporters an unfair advantage by weakening the yen, which is close to undermining US automakers’ profits.
“With the currency manipulation, we just have to get back to the place where the currencies are set by the markets and the free trade agreements really are free trade agreements,” Alan Mulally.
Since the beginning of the year Mulally has expressed his concerns regarding the yen, saying how the currency helps Japanese exporters increase profits, drawing increasing international criticism. This week Bank of Korea Governor Kim Choong Soo urged countries in Asia to join hands and defend themselves against the negative side-effects of the campaign imposed by Prime Minister Shinzo Abe.
“Mulally is one of the harshest critics on the yen,” said John Zeng, a shanghai-based analyst at LMC automotive. “A weaker yen puts them in a disadvantageous position.”
Since November, the yen has dropped against each major currency, including 17% against the dollar, increasing the value of exports at Japanese companies, from Toyota to Sony. Mulally also drew attention on the fact that Japan is still a closed market for automakers in the US, who oppose the Asian country’s bid to join the Trans-Pacific Partnership negotiations.
“It’s just the most closed market in the world,” Mulally said today.