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How the Japanese Government Is Hurting Ford and GM

By Brendan Byrnes and Austin Smith - Apr 8, 2013 at 8:00PM

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Is this move by the Japanese government anti-market?

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.

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Stocks Mentioned

General Motors Company Stock Quote
General Motors Company
$35.09 (-2.53%) $0.91
Ford Motor Company Stock Quote
Ford Motor Company
$12.38 (-3.55%) $0.46
Toyota Motor Corporation Stock Quote
Toyota Motor Corporation
$160.47 (-0.55%) $0.88
Honda Motor Co., Ltd. Stock Quote
Honda Motor Co., Ltd.
$24.89 (-1.49%) $0.38

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