TOKYO — Japan's automakers are posting mixed financial results as they fight through the global semiconductor shortage with slumping sales. But as they battle to boost earnings, they are also riding a surprise tailwind that provides a welcome lift: favorable foreign exchange rates.
A weakening Japanese yen has emerged as a windfall for the country's automakers, helping buoy results just when they need it most amid pinched production and derailed deliveries.
As Japanese automakers kicked off earnings season last week, Toyota, Honda, Subaru and Mitsubishi all rode the forex updraft, which may gather pace given U.S. economic trends.
For Toyota and Mitsubishi, the currency bonanza made substantial contributions to profit growth in the July-September quarter. For Honda and Subaru, the exchange gains helped offset the impact of tumbling sales, even though overall profits declined in the period.