GM CEO says yen's continued strength good for U.S.

[plane]

ROYAL OAK, Mich, Aug 17 (Reuters) - The top executive at General Motors Corp (GM.N: Quote, Profile, Research) said on Friday that if the recent strengthening of the Japanese currency continues, it would represent "a huge change in competitiveness" for U.S. automakers.

Rick Wagoner, the automaker's chief executive, said that he would like to see the yen in the 90-100 range versus the U.S. dollar because such a level "would dramatically change" the competitive landscape.

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http://www.reuters.com/article/marketsNews...20070817?rpc=44

[CARBIZ]

True, but unfortunately, while it makes exporting cars and trucks to the U.S. more expensive, it also makes the BILLIONS in profits that Toyota has socked away worth more, unless they've invested in U.S. dollars, of course.

[thegriffon]

I would think any cash or cash equivalents on hand would be in a range of currencies to facilitate payment of ongoing expenses in different markets. Since a lot of expenses are production still occurs in Japan however, it will put a big crimp in the bottom line.

[Newbiewar]

True, but unfortunately, while it makes exporting cars and trucks to the U.S. more expensive, it also makes the BILLIONS in profits that Toyota has socked away worth more, unless they've invested in U.S. dollars, of course.

well if u think about it... i think its similar to my dads retirement worries...

in a year or two he will retire... and he has two retirement funds that will come in at that point... both around 80k a year, which isnt bad... but as the dollar inflates the average of about 3-5 % per year, my dad went with the middle of 4%

after 14 years thats 56% of inflation, and i didnt even compound it... its probably several points above that...

so as inflation takes its path, although operating income or capital is the same... my dad has aproximatly half as much income or as he puts it, buying power...

and if Toyota has a bank account with $x.... and the cost of car xyz climbs and toyota continues for the year to have the same price in the united states... will cut their profits short, or eat into bank account with $x