GM Alleges Currency Manipulation by Japan

[Perian]

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.

Article continues at link.

[Perian]

Interesting how GM starts this process just as the economy in Japan is showing its' first signs of life in many years.

Is GM pushing back, or trying to hold back the competition?

A monetary cost advantage of 3K-12K must be addressed.

No doubt this will go on way past dressing up a few Chevy Cavaliers as Toyota imports...

[tgagneguam]

Let it go, GM. Articles like these only seem to reinforce the perception that you're a whining loser of a company.

There are many non-automotive American companies that fare quite well in Japan.

[AdmiralViscen]

GM isn't releasing this at a press conference. They are speaking in front of Congress.

[Arizona Slim]

I think it good that they're bringing this issue to the House, but I'd be absolutely shocked if the politicans did something about it besides talk.

On a side note - Thanks, Perian, for always finding us news to talk about.

[01cavalier]

This has been brought up before. The Japanese government has been doing this for many years, if the US government did this, everyone else would be raising hell!

[GM_Fanatic]

Originally Posted by tgagneguam

Let it go, GM. Articles like these only seem to reinforce the perception that you're a whining loser of a company.

There are many non-automotive American companies that fare quite well in Japan.

um did you read the article about what is going on? They should of done this a long time ago.

[goblue]

They can't hammer Japan too hard b/c they finance our goverment's debt. Our fiscal policy of living way beyond our means has made us put up with China and Japan's anticompetitive practices.

[T-Type]

Originally Posted by tgagneguam

Let it go, GM. Articles like these only seem to reinforce the perception that you're a whining loser of a company.

You know what, if the situation were reversed and Japanese makes were struggling in the US, I'd agree to let it go. But that's not the situation. The US makes are fighting for their lives while Japanese makes (with one or two exceptions) are growing by leaps and bounds. I don't think it's too much to ask that the playing field be leveled.

To the Japanese makes fans: Note I said leveled, not turned around so that the US makes have the advantage.

[tgagneguam]

To be clear, I am not saying GM is a whining loser of a company. All I am saying is that the press will have a field day distorting this into GM is a whining loser of a company. After all, there are other industries that compete quite readily with the Japanese.

I suspect this article again will merely paint GM as a pariah rather than raising a legitimate concern.

If GM knows that Congress will not intervene - and we know it won't - then it's close to pointless in raising the issue; in fact, I again suspect it will only make GM look bad. I say focus on circumstances more under their control... like building great cars and trucks.

[surferdude00711]

Originally Posted by goblue

They can't hammer Japan too hard b/c they finance our goverment's debt. Our fiscal policy of living way beyond our means has made us put up with China and Japan's anticompetitive practices.

They should reieve us of it... Last time I checked, the entire world owes us for saving their asses , and when they deystroyed eachothers countries they needed money to rebuild. And their cities were just as bad as new orleans if not worse. This was meant towards China, but BMW could help out. Them and the other German companies made contracts with the nazis to use people for slave labor.

[Mr. Burns]

whats up with allthis critisizing? GM sounds like a little boy who trys to find faults with his older more loved brother but is never right. "he put your shoes in the dishwasher!" "he wrecked your CD by puting it in the VCR", people dont care really about GMs criticises, they're about their lives, its not like the average consumer is going to care now is it? save your energy GM, with your new products, only time will tell.

[SweetHemi1]

Perhaps GM needs some cheese to go with its whine?

[T-Type]

OK, so some of you guys think GM is whining. Fair enough. But those of you who think so, please give your answer to the question. Is it OK for the Japanese govenment to manipulate their currency to the advantage of the Japanese businesses?

[Mr. Burns]

Originally Posted by T-Type

OK, so some of you guys think GM is whining. Fair enough. But those of you who think so, please give your answer to the question. Is it OK for the Japanese govenment to manipulate their currency to the advantage of the Japanese businesses?

only if its for the best