Ford’s Headache is a Boon for Japanese Automakers

By letting the yen’s value slope downward, the profit margins for export sales increase, and allow the companies to drop their prices for the end user, causing anxiety among companies competing in international markets. The American Automotive Policy Council, backed by Ford, General Motors Co. (NYSE:GM), and Chrysler Group LLC, estimates that the currency advantage equates to about $5,700 per vehicle, Bloomberg reports.

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Although Japanese imports could pose problems for the domestic manufacturers, automakers from all over the world have their sights trained on China, now the world’s largest automotive market. Ford has been looking to the area for some relief from other regions like Europe, where the company is expected to post a $2 billion loss for 2013.

Mulally thinks Asia will probably generate about 40 percent of Ford’s sales by the end of the decade, with the Americas and Europe accounting for the rest. Sales in China alone surged 46 percent in the first couple of months of this year.

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