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. Last Updated: 07/27/2016

Yen Worries GM

TOKYO -- The head of U.S. auto maker General Motors Corp.'s Japanese unit said Friday a further decline in the yen against the dollar would be worrying and may prompt a review of import strategies.


"If that trend continues, I will be very concerned," said Douglas Herberger, president of General Motors Japan Ltd.


Herberger told his first news conference since his appointment to the job Jan. 1 that if the if the yen stays weak, "we have to review our strategies," indicating a change in sales prices for imported vehicles.


But he said the dollar/yen rate was likely to "stabilize into the 95-to-105 yen range from a long-term point of view."


The dollar was quoted at 121.82-86 yen in late morning trading here Friday, up from 121.34-37 yen late Thursday but slightly down from 121.91 yen in New York late Thursday. The U.S. unit rose to 122.27 yen briefly and has neared 123 yen in recent days.


A U.S. official said Thursday that U.S. car makers would continue seeking full entry to the Japanese market despite the dollar's recent surge.


The official told a briefing that U.S. auto and parts makers would not be discouraged from entering the Japanese market despite the dollar's sharp drop, which is likely to boost the cost of U.S.-made goods in Japan.


"We expect to see continued progress, despite fundamental underlying changes," the official said.


The official said the foreign exchange rates was only one of a series of factors that impact on the U.S. auto industry overall, adding that other factors such as auto makers' own efforts and product competitiveness needed to be considered.