Mitsubishi says it is running out of options to counteract the high value of Japan’s yen. Like Japan’s other automakers, Mitsubishi’s earnings have been hampered by the record high value of the yen.
Mitsubishi president Osamu Masuko announced on Thursday that the company is running out of ways to cut costs in order to limit exposure to the strong yen. The automaker plans to speed efforts to procure more parts from overseas vendors in order to hedge its finances.
The yen hit a 10-year high against the euro this week and remains strong against the dollar.
The issue with the yen isn’t specific to Mitsubishi, though, with most of Japan’s major automakers feeling the crunch. Earlier this week Honda outlined a plan to slash its Japanese production in half in order to reduce its exposure to fluctuating exchange rates.
References
1.’Mitsubishi Motors…’ view
