US automakers are not alone in feeling pain. Toyota, which just recently has passed GM as the world's largest producer of cars, has taken a rare step of shutting down production for 11 days. Only plants in Japan are scheduled take this drastic step. This follows three days shut down that took place in December. This step highlights the impact of the relentless decline in global demand for cars, which plunged over 35% in December. To be fair, Detroit's troubles started well before recent economic slowdown, and were somewhat different that Toyota's. Regardless, most, if not all, world's car producers are suffering.Forex commentators were quick to link this development with Yen weakness, which is probably pile of crap. Let's not forget that over last few months there were NO good news coming from Japan and Yen still managed to stage a great rally, which is overdone now. I strongly suspect, any news from Japan could be used as an excuse for falling Yen. Well, reporters have to write something.Weakness in JPY came at perfect time, when I was ready for it. Some pips were made yesterday, few more today.
(more...)
Toyota in trouble.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment