Japan automobile sector advises devaluation of the yen

Friday, 10 June 2011 11:05:05 (GMT+3)   |  

The Japan Automobile Manufacturers Association (JAMA) and the Confederation of Japan Automobile Workers' Unions (CJAWU) have expressed their concerns that the current foreign exchange rate levels for the yen might gravely hamper the nascent recovery in automobile production after the March 11 earthquake and tsunami and imperil the resurgence of Japan's weakened economy.


In a joint open letter to the Japanese government, the JAMA and the CJAWU stated, "Over the decades, the Japanese automobile industry has carried out a steady series of cost-cutting and other measures necessary to maintain its international competitiveness," adding that the yen's present exchange rate level, however, clearly limits the impact of such efforts.


The JAMA and the CJAWU also stated in their open letter that the Japanese government should take swift and effective action aimed at reducing the current strength of the yen.


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