Devalued yen hurts U.S. auto industry

Re “It’s not the yen, it’s the mileage,” Opinion, Jan. 30

This one-sided, Detroit-bashing and Japan-cheering Op-Ed is a disappointment. It also is a cheap shot.

Daniel Griswold accuses the U.S. auto industry of trying to make Japan a “scapegoat.” On the contrary, Daimler Chrysler, Ford and General Motors have been open about the challenges presented by the intense competitive struggle underway in the U.S. market and their on-going corporate restructuring plans.

We apologize to no one for raising to U.S. policymakers Japan’s policy of massive currency intervention and manipulation as an unfair trading practice that is damaging our industry. Japan’s intervention has pushed down the yen’s value to its lowest level in more than 20 years, 20% to 25% below the level at which it would otherwise trade.

In the car business, this windfall currency advantage translates into a $3,000 to $10,000 subsidy for every vehicle exported from Japan. This may be one reason Japanese auto exports have increased by about 1 million units over the last decade.

At a meeting in November with the chief executive officers of the three American auto companies, President Bush acknowledged that GM, Ford and Daimler Chrysler are making “difficult decisions” to ensure that the companies are competitive in the global economy, adding that “the automobile manufacturers play such a significant part of our economy and a vital part of our employment base.”

The president was right, and an artificially manipulated weak yen, intended only to push subsidized exports on the rest of the world, can only undercut our efforts, those of our workers and the health of the U.S. manufacturing base.

STEPHEN COLLINS

President

Automotive Trade

Policy Council

Washington