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Originally Posted by dsgerbc
And anyone who bases long-term strategic decisions on a directional forecast of the exchange rate is stupid. Exchange rates are almost unpredictable, and the best forecast for X years into the future is where the exchange rate is today.
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"We currently have a three-year plan under which we are assuming a rate of 80 yen to the dollar," Ike told a small group of reporters at Honda's headquarters in Tokyo. And under that assumption, the discussion to look for an alternative production base is inevitable." Fumihiko Ike was quoted as saying by MSNBC.
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Clearly you know something that Honda does not.
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Originally Posted by dsgerbc
b) price things in export markets according to domestic price X exchange rate. Nobody in auto business does this. Most cars are "priced to market".
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This is exactly WHY the situation is so hard on Toyota. They are pricing their product to be competitive in the US market, despite what it costs to produce it in yen. I already posted the equivelant USD prices for the Japanese models. You should have noticed they are about 10 THOUSAND dollars in excess of the speculated US pricing. Of course it's unrealistic for Toyota to sell cars in America at price, so they won't try. However what that means is a huge cut into the car's profit margin for Toyota, and that's before you even start factoring in things like added cost of transportation to the US.
Sarcasm aside, I can give you the means to learn but I cannot force you to do it. If you would like to stay blind in your ignorance I cannot stop you, but please don't spread that filth on a public forum. Others here are interested in knowing the the facts regardless of whether or not they line up with their own preconceived notions, and may unknowingly accept your delusions as truths.