OK, the yen matters

If there’s one subject that gets a General Motors executive snarling, it’s the yen-to-dollar exchange rate. They have been bleating for years that Japan’s central bank manipulates the currency, making it cheaper for the Japanese to export their cars and parts here. They get a cost and pricing advantage that makes it tough for Detroit to compete. The UAW quotes a study by Detroit-based Harbour-Felax Group that says yen manipulation gives the Japanese a $2,760 subsidy on small cars and as much as $8,280 on a luxury vehicle.

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