Carlos Ghosn complains the Yen is too high

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Ghosn says:
“Two months ago, we were fighting the yen at 90, and we were asking for a more reasonable rate. Instead of the rate becoming more reasonable, then yen went to 85 against the dollar, and then 80, and now 77. Common sense tells us what we are seeing today is abnormal.”

Part of this is the unwinding of the carry trade but most of the problem is the Chinese. Nissan has more suppliers outside Japan than just about any other manufacturer so they are not as affected as Toyota. Toyota desperately needs to move their production out of Japan but their business model depends on a Japanese supply base.

Big opening for the Koreans.

The Prius and its batteries are made in Japan, probably the reason of the very high cost recently announced for the PIP. That high cost is a setback to the EV industry. It may also slow down the roll out of the Leaf in the US.

Herm said:

The Prius and its batteries are made in Japan, probably the reason of the very high cost recently announced for the PIP. That high cost is a setback to the EV industry. It may also slow down the roll out of the Leaf in the US.

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The LEAF (including the batteries) will be made in Tennessee next year. No more Yen strength excuses after that.

Toyota has done a great job of holding the line on their Japanese built cars like the Prius. Undoubtedly they will need to eventually bring some production here to the US - but on the currently low volume PHEV I don't see it happening soon.