Joe Hinrichs, president of Ford’s Americas division made a strong statement regarding what the US automaker sees as unfairly manipulating currencies to boost local enterprises profit from exports.
The executive particularly voiced his criticism against Toyota in a speech at The Economic Club of Chicago, where he urged the US congress to even openly oppose any Trans-Pacific Partnership if the agreement doesn’t also include a strong currency conduit.
“When Toyota came out and said half their profits are due to currency change of the yen, that’s a big deal. They said that,” Hinrichs said in comments to reporters after the speech. “When [Toyota President] Akio [Toyoda] came out in support of [Japanese Prime Minister Shinzo] Abe saying we need a weaker currency, that’s a corporate policy statement.”
“Of course every country has a right to conduct sound monetary policy,” Hinrichs said. “That includes legitimate strategies like quantitative easing. But direct currency intervention cannot be tolerated in the 21st Century.”
Last year, the yen lost about 23 % of its value compared to the US dollar and Toyota even said its operating profit goes up by 35 billion yen for each yen the currency loses against the dollar – putting in their “pockets” a foreign exchange gain of as much as 260 billion yen ($2.47 billion) in the fiscal third quarter alone.
Via Automotive News Europe