Will it last? That’s the question after the Big Three automakers reported record earnings.
General Motors Corp. reported second-quarter profits of $1.9 billion. Ford Motor Co.’s earnings totaled $1.71 billion, and Chrysler Corp.’s were $956 million.
Auto factories are running at full tilt, suppliers can barely keep up and automakers said they have even begun to hire again, albeit cautiously.
To a large degree, that’s a result of the surge in the value of the Japanese yen, which has forced Japanese automakers to raise prices more significantly than U.S. automakers have, helping steer consumers to domestic vehicles.
But therein lies the rub. If and when the yen drops in value vs. the dollar and Japanese automakers are able to lower prices or at least hold them stable, will the U.S. consumer again head for the foreign-car showroom?
U.S. automakers have said they believe they have another year or so of strong sales. But rising interest rates also could tap consumers’ brakes.
