The Japan Automobile Manufacturers Association (JAMA) has expressed its concerns for the domestic automobile industry which is facing recovery and reconstruction after the March 11 earthquake and tsunami, and which is also struggling due to the appreciation of the yen and unsteady electricity supply nationwide.
In an open letter to the new Japanese prime minister, JAMA stated, "Paramount among our industry's immediate concerns are the yen's excessive appreciation and the resulting impact on auto manufacturing in Japan. The extraordinarily high value of the yen has created an uneven international playing field which very seriously affects production activity here, raising the risk of nothing less than the hollowing out of the industry."
JAMA also stated in its open letter to the new Japanese administration that it should also take the measures needed to improve the environment for automobile use in Japan, including auto-related tax reform, so as to provide fresh stimulus to the domestic vehicle market.