US Automakers Launch New Website on Japan's Yen Subsidy Damage to US Auto Industry

The Automotive Trade Policy Council (ATPC), whose members include General Motors, Ford and DaimlerChrysler, announced today the launch of a new website focused on the harm that the Japanese Government's "yen subsidy" -- resulting from the continuing misalignment of the Japanese yen -- is causing to U.S. automakers and the U.S. economy.

The website provides information on how the Japanese Government ensures that the yen remains weak against the U.S. dollar, how that policy creates a substantial subsidy for Japanese exports, the advantage this subsidy gives to Japanese automakers, and the impact it has on U.S. auto manufacturers and the American economy. The website includes a real-time display of the value of the yen relative to the dollar as well as studies, fact sheets, news articles and press releases about yen misalignment. The site is targeted to policymakers and the media.

"Japan's yen subsidy provides the average imported Japanese car a $4,000 windfall cost advantage over U.S. automakers and other competitors in the U.S. market, ranging up to $10,000 per vehicle for higher end imported SUVs," said Automotive Trade Policy Council President Stephen J. Collins. "Japanese automakers today export 2.2 million vehicles a year to the U.S. -- just as many as they did 20 years ago -- primarily SUVs and luxury vehicles. Our companies welcome international competition, but it needs to be fair. It is time to take action to correct the imbalanced yen."

The address of the new website is http://www.autoyensubsidy.org/

The launch of the website follows Senator Debbie Stabenow's (D-MI) introduction last week of the Japanese Currency Manipulation Act, S 1021, which would require the Administration to press Japan to end its yen subsidy and to coordinate with other major industrialized countries and the International Monetary Fund to put a stop to the damaging Japanese currency policy. Also last week, the Peterson Institute for International Economics released a report by 30 leading economists calling for an increase of 25-30 percent in the value of the yen to the dollar. The Peterson study can be found on the website.

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.

Source: Automotive Trade Policy Council