Please ensure Javascript is enabled for purposes of website accessibility

How the Japanese Government Is Hurting Ford and GM

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

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

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

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
334%
 
S&P 500 Returns
117%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.