P&A Providers & Administrators
MenuMENU
SearchSEARCH

Detroit 3 Raise Asian Currency Issues

March 17, 2010
3 min to read


WASHINGTON - The Detroit Three automakers on Wednesday urged Congress to take action to stop efforts by Japan and South Korea to shore up their currencies, The Detroit News reported.


The automakers prodded Congress to "send a clear message to the governments of Japan and Korea: Do not intervene in currency markets."

Ad Loading...


It's the latest effort by the automakers to raise the issue of currency. It follows a meeting earlier this month with the senior auto adviser on currency issues.


The American Automotive Policy Council -- representing General Motors Co., Ford Motor Co. and Chrysler Group LLC, said both countries were engaging in "currency manipulation" that "unfairly boosts these nations' auto exports and hurts American jobs."


Automakers have complained for more than a decade that Japan and Korea haven't done enough to open their markets and allow their currency to move at market rates. A proposed Korea Free Trade agreement remains stalled in Congress -- largely because of concerns of midwestern Democrats that the deal doesn't do enough to open Korea's auto market.


The automakers cited Japan's decision last week to add another $56 billion to its special fund for currency interventions on top of the massive reserve already in place -- and Japan's Finance Minister Naoto Kan told the Japanese Diet last week that the government is ready to intervene in currency markets to depreciate the yen.


The group said Korea has been intervening repeatedly throughout 2009 and into 2010 to manipulate the value of its currency -- the won.

Ad Loading...


"We urge you to make clear to the governments of Japan and Korea that the U.S. Congress considers such interventions unacceptable and that any decision to proceed with or continue such interventionist policies will be strongly and directly challenged by the United States in defense of fairness and American jobs," the leaders said.


The group also sent a letter to the Japanese ambassador to the United States, Ichiro Fujisaki.


"American auto companies will consider intervention in foreign exchange rate markets by the Japanese government that weakens the yen as unfair competition directed at the American automotive market and American workers as the industry begins to recover from the economic recession," they wrote. "We will encourage our government to take strong and equivalent action in response to prevent harm to American jobs."


An official at the Japanese embassy who handles auto issues didn't immediately return a request seeking comment.


Korea and Japan remain the two most closed automotive markets, according to the Organization for Economic Co-Operation and Development -- which ranks the pair 29th and 30th of 30 total countries. Import penetration in both countries' auto market is less than 4.5 percent. They argue it's primarily because of non-tariff barriers like currency valuations.


More Industry

Kia Niro SUV in gold color parked outdoors
Industryby Hannah MitchellSeptember 1, 2026

Kia Closes Out Summer With a Bang

Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.

Read More →
Outside of Auto Park Ford dealership
Industryby Lauren LawrenceSeptember 1, 2026

Indiana Dealership Changes Hands

A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.

Read More →
Three men standing in front of two classic cars handing off gift.
Industryby Hannah MitchellAugust 25, 2026

Texas Dealership No Longer in the Family

The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.

Read More →
Ad Loading...
Outside of modern car dealership “Genesis of San Bruno
Industryby Lauren LawrenceAugust 25, 2026

Genesis Grows California Presence

The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.

Read More →
Red Honda Civic hybrid sedan on two lane road with green hills in background
Industryby Hannah MitchellAugust 21, 2026

August Auto Sales a Mixed Bag

An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.

Read More →
EV charger inserted into dark-colored car port
Industryby Hannah MitchellAugust 18, 2026

EV Market Humming Along

July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.

Read More →
Ad Loading...
car in background with hand giving a thumbs up in front
Industryby Lauren LawrenceAugust 14, 2026

Auto Loan Delinquency Rates Stabilize

Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.

Read More →
blue sky, yellow and orange rollercoaster with riders going up an incline
Industryby Lauren LawrenceAugust 12, 2026

EV Sales Recover in Q2

The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.

Read More →
Photo of blue Toyota Prius parked next to body of water with city skyline in background
Industryby Hannah MitchellAugust 5, 2026

The Cheapest Hybrids to Fuel

The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.

Read More →
Ad Loading...
white SUV parked in front of a body of water with a gray sky background
Industryby Lauren LawrenceAugust 5, 2026

Hybrids and SUVs Gaining Ground

The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.

Read More →