In this video, Motley Fool analyst Brendan Byrnes describes how global currency fluctuations are hurting U.S. automakers in their domestic market. The new Japanese government has enacted policies that devalue the yen relative to the dollar. This allows Japanese automakers, Toyota especially, to make more money off cars made in Japan. This also allows Japanese automakers to price their vehicles more competitively to U.S. cars. The devalued yen and consequent improved price structure for high-quality Japanese cars spells bad news for U.S. automakers.

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The article How the Japanese Government Is Hurting Ford and GM originally appeared on Fool.com.

Austin Smith owns shares of Ford and General Motors. Brendan Byrnes owns shares of Ford and General Motors. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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RED SKULL

I AM AN AMERICAN, I LIVE IN AMERICA, I PAY TAXES IN AMERICA, I DRIVE, I BUY AMERICAN CARS. THAT SAID THE JAPANESE GOVERNMENT CAN DO WHAT THEY PLEASE . IF ALL AMERICANS DID AS I DO WE WOULD HAVE SO MANY JOBS IN THIS COUNTRY THINGS WOULD BE A WHOLE LOT BETTER AND YOU WOULD SEE AN IMPROVEMENT IN THE ECONOMY OVERNIGHT.

April 09 2013 at 4:10 PM Report abuse rate up rate down Reply