gillies@uiucdcsp.cs.uiuc.edu (04/01/88)
Japanese companies are much tougher than american ones. When the dollar lost 40% of its value, why did japanese car prices only go up 10%? The japanese renegotiated their contracts with ever parts supplier. They run their factories only at nighttime to get discounts on power. They trimmed 50% from their dealer's profits, and began exporting more cars. All in all, they cut car manufacturing cost, already the cheapest in the world, by 30% (Technology Review Article). Reagan has actually strengthened the japanese car industry by manipulating the dollar on world markets. They see their companies business as a matter of life and death.