U.S. car companies say the weaker yen is likely to lead to Japanese automakers gaining as much as 2 percentage points of U.S. market share next year.
The yen fell to a 5 1/2-year low against the U.S. dollar this week, reaching 129.59 yen to the dollar Tuesday, amid concern about Japan’s banking and securities industry and its six-year economic slump. A weak yen makes Japanese exports cheaper and generates more yen for each dollar sale.
Chrysler Corp. economist Van Bussmann said he expects the Japanese currency to trade at 125 yen to the dollar on average next year and that Japan-based automakers will increase their share of U.S. vehicle sales by 1 to 2 percentage points as a result.
“It certainly makes the competition even more fierce than it already is,” Bussmann said.
The stakes are high: A point of U.S. market share equals 150,000 vehicles. Asian automakers had 24.5 percent of the U.S. market through November, up from 23.6 percent in the year-earlier period. The combined market share of the U.S. Big Three fell to 71.6 percent from 72.9 percent, while European brands’ share rose by half a point, to 3.9 percent.
