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Old 09-29-2005, 03:23 PM   #1 (permalink)
Perian
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Join Date: Nov 2004
Location: New York
Drives: 2008 Saab 9-5 Sedan
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GM Alleges Currency Manipulation by Japan

Link: http://biz.yahoo.com/ap/050929/us_japan_trade.html?.v=2

WASHINGTON (AP) -- General Motors Corp., the world's largest automaker, and some U.S. lawmakers are criticizing Japan for what they call discriminatory and arbitrary government policies that threaten free trade between the two countries.

Testifying before House lawmakers Wednesday, GM chief economist Mustafa Mohatarem said currency manipulation by Japan has given its automakers an unfair advantage in the U.S. market, hurting American manufacturers.

GM said Japan's weak yen policy gave Japanese automakers a cost advantage ranging from $3,000 on a small car to $12,000 on a luxury sport utility vehicle.

"This subsidy has both facilitated the expansion of Japanese companies in the U.S. and succeeded in keeping American-built automobiles out of Japan," Mohatarem said.

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