In this video, Motley Fool analyst Brendan Byrnes describes how global currency fluctuations are hurting U.S. automakers in their domestic market. The new Japanese government has enacted policies that devalue the yen relative to the dollar. This allows Japanese automakers, Toyota especially, to make more money off cars made in Japan. This also allows Japanese automakers to price their vehicles more competitively to U.S. cars. The devalued yen and consequent improved price structure for high-quality Japanese cars spells bad news for U.S. automakers.
Austin Smith owns shares of Ford and General Motors. Brendan Byrnes owns shares of Ford and General Motors. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
