Photo: original image created by autoevolution
The rising yen, which is now hitting new highs against the US dollar, is putting some serious strain on Japanese car exports, and as a result manufacturers are having to cut extra content in order to keep prices low.
It might not be visible at a first glance, but Automotive News reports Lexus is having to use asphalt spray instead of laminate sheeting on the underbody, and recycled plastics for some components in the new GS 350. Also, instead of developing a brand new box, they’ve slapped on the old six-speed auto.
Despite this, Toyota and Lexus are constantly announcing price increases from the previous model year, and are having to reduce the number of standard features in some cases. The only option is to move these critical export cars to production facilities outside of Japan, hurting the nation’s economy in the longer run.
But what else is there to do! John Mendel, American Honda's U.S. sales chief, described what they are doing as "squeezing costs from a rock."
Despite this, Toyota and Lexus are constantly announcing price increases from the previous model year, and are having to reduce the number of standard features in some cases. The only option is to move these critical export cars to production facilities outside of Japan, hurting the nation’s economy in the longer run.
But what else is there to do! John Mendel, American Honda's U.S. sales chief, described what they are doing as "squeezing costs from a rock."
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