What to watch
Price cuts can drive vehicle sales, and Toyota is in a prime position to capitalize on the devalued yen, not only in America, but also on a global scale. This is bad news for American automakers such as Ford and GM, because they can’t compete with the same price-slashing power, without significantly affecting their margins. Consequently, Ford is leading the charge against the Japanese government’s yen manipulation. So far, its efforts have had little to no impact on Japan’s currency decisions, but that could change with U.S. government involvement. Maybe.
Regardless, this ongoing development is something to watch, as it could affect auto sales — positive for Toyota, not so much for Ford and GM.
The article Ford Takes On Toyota and the Yen in the Battle for Global Domination originally appeared on Fool.com and is written by Katie Spence.
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