Aug 23 2013

Ford Motor Co. has criticized the Japanese auto industry for producing excessive supply of cars. Ford said that all the carmakers, led by Toyota Motors Corp., are producing excessive supply of cars, because of a weak Yen, which is a big threat for U.S. job growth.

Joe Hinrichs, The President of Operations for Ford in North America, said in an interview that in North America U.S. sales has increased so the production of Ford along with all other automakers has been constrained in this region. Ford also said that Yen has won and helped Japan in maintaining extra auto capacity. Ford Explorer XLT SUV’s are parked at Georgia Ports Authority, Colonels Island at Auto import and Export Terminal and waiting to be exported to Japan.

Allan Mulally, C.E.O. Ford Motors Co. had a talk about currency policy of Japan, Production of automakers in Asia and growth strategy in China. Speaking with Bloomberg’s Stephen Engle, he said, industry is growing but in North America capacities are bit tight. Joe Hinrichs said that if extra capacity is going to come from Japan instead of U.S than it is not a proposition to lose.

Allan Mulally said in June that currency manipulation by Japan has reflected a serious threat to Ford’s growth in U.S. Toyota, which is the biggest market share gainer this year and has achieved its first monthly win in July since March 2010 by outselling Ford.

In a contract of $6,3 billion with United Auto Workers Union in 2011, Ford decided to upgrade and retool its plants by 2015 as expanding existing factories and building new auto plants can be very expensive.

 

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