Article suggests Toyota could benefit from the falling Yen giving them a low price advantage. US companies concerned. OK, I am looking for smoking gun why some states are considering hybrid fees, and I am wondering if something like this is the true behind the scenes political explanation. Will Falling Yen Cut U.S. Automakers? - Yahoo! Finance
Toyota should be the biggest benficiary of the weak yen, but I doubt that has anything to do with the states implementing hybrid taxes, or proposing them. None of those states have major UAW or big 2 influence. Virginia seems much simpler. They wanted to lower gas taxes, and wanted to tax a different part of the state. Its politics at its worst, but nothing that Ford, GM, or the UAW have much to do with. Ford and GM want to sell hybrids and phevs which helps them meet cafe. The auto dealers lobby could be involved, but this includes toyota. Hybrids don't bring in as much service revenue.
Maybe, but the price advantage that Japanese auto makers will see pales in comparison to a road tax imposed on hybrids / electrics, therefore the US consumer will gladly trade the incremental road tax for the change in the annual cost to own. In my opinion, Toyota (Prius and especially the PIP) and Nissan (Leaf) have technological superior products that are being held back from US consumer acceptance by high prices, largely driven by the Yen. If this dynamic were changed, which is one of the goals of Japan's Central Bank (essentially equivalent to the US Federal Reseve Bank), then the Prius and Leaf would sell to a discount to their current pricing. Big win for Japanese auto makers, US consumers, and (hang on while I reach around this tree) the environment. If I were a US auto maker, I would be concerned, very concerned. The US Federal Reserve is trying to do the same, buying debt and keeping interest rates low to encourage the economy, via consumer spending. If the Fed's actions work, and the JCB impacts the Yen as they intend, we will see US consumers with great loan and lease options on very attractively priced, technologically superior, and super low cost to own, Japanese made vehicles. The US auto makers are going to be calling in every chip they have in DC and the Rust Belt. Maybe this will impact the federal and state incentives on electric / partially electric vehicles. Maybe this is contributing to the decline in gas prices. Who knows. I'm just a finance guy, and the politics simply give me a headache.
"Falling Yen Impact on Autos" Only if they are coins, and dropped from quite a height. Out this way, hailstorm damage is much more common.
FED has been doing this for a decade... 12-13 years ago, USD was around 8% stronger than EUR, and now it is 30% weaker. That is massive deflation. At this point, Yen at 96 is nothing... basically around 100 is normal level.... 120 would be "catastrophic" for competition, but again, it is the same policy FED has had for a decade now.
