U.S. Automaker CEOs, Senators Discuss Japanese Yen Misalignment at Manufacturing Summit

Business Wire, June 7, 2007

WASHINGTON -- The Chairmen of DaimlerChrysler USA, Ford Motor Company and General Motors Corporation encouraged Congress yesterday to address the important issue of the misaligned and undervalued Japanese yen at a "Manufacturing Summit" held by the U.S. Senate Democratic Policy Conference on Capitol Hill.

In remarks at the forum, Alan Mulally, President and CEO of Ford Motor Company, stated:

"Currency values must be fairly determined - through an open market - not pre-determined by governments. While much of the recent focus has been on China in this regard, Japan's actions have been most troubling to our industry. Japan's misaligned yen is one of the drivers of a huge deficit in the auto sector with the United States. Our government must demand that the Japanese government allow the yen to regain its true value."

"Nearly every major currency other than the yen has appreciated significantly against the dollar, - including gains of 25% percent by the Euro, 30% by the Canadian dollar, and 33% by the Korea won," said Automotive Trade Policy Council (ATPC) President Stephen Collins. Yet the Japanese yen has sharply weakened against the dollar and other major industrialized currencies. "The weak yen is a glaring contradiction in today's global financial markets.

"Japan's weak yen policy is causing serious damage and disruption to America's auto manufacturers," continued Collins. "The Japanese yen has now reached its lowest valuation in 20 years. The weak yen pumps billions of subsidized dollars into Japan's auto companies directly boosting Japan's vehicle and parts exports. The result: Japan's car, truck and SUV exports to the U.S. are surging, and are now on track to reach 2.5 million vehicles this year."

The Chairmen of DaimlerChrysler USA, Ford and General Motors made clear in today's meetings with Members of Congress that they strongly support Senator Debbie Stabenow's legislation (S. 1021) that would require the US Treasury to take aggressive action bilaterally and on the world stage to bring the Japanese yen back into proper alignment with the other major OECD nations.

Collins concluded: "American auto manufacturers are very pleased that the misalignment of the yen is receiving the serious attention it has long needed from Congress. Resolving the yen issue bilaterally or multilaterally is one of the core elements of ensuring US competitiveness in the auto arena."

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.