Yen Strength Leaves Car Chiefs Concerned About Production Future

The sustained strength of the Japanese yen has started to force domestic carmakers to rethink their domestic production strategies, posing serious downside risks to BMI's already conservative forecast for average annual output growth of less than 5% for 2013-2015. Although we expect to see a recovery in domestic production in 2012 as carmakers fulfil orders disrupted by the March 2011 earthquake and tsunami, the soaring cost of exports means a shift in longer term strategy for even the most committed national

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