Major shift for Japanese auto industry, financing may be an issue based on strong Yen

Many industries in Japan suffered major setbacks following the March earthquake and tsunami, with damage from the disaster forcing many companies to suspend or reduce output for an extended period of time. However, some sectors, including the auto industry, have seen better results in recent weeks, reporting increased sales. One of the companies, which has been in the news due to auto industry financing, is Nissan, which recorded better-than-expected earnings for the first quarter that ended in June. And while the news was applauded by investors and others, Nissan's vice president, Joji Tagawa, said that exchange rate issues were causing other problems. "The current strong yen is out of reach of an individual company to deal with," he said, according to the Wall Street Journal. "I'm concerned that there could be an impact on employment at Nissan, employment at the Nissan group or employment at our suppliers as it would be difficult to continue production" in Japan if the current strong yen continues, or even strengthens further, he said. Nissan made other news recently when it came out in favor of a proposal by President Barack Obama. The automaker joined Ford and GM in endorsing the president's plan to double U.S. fuel economy standards by 2025.