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Tuesday, December 23, 2008
The long-awaited diesel Subaru Impreza UK launch has been delayed indefinitely due to the yen exchange rate, which hit its highest level in 13 years last Wednesday.
Sources inside International Motors, Subaru’s official UK importer, admitted that the company had no choice but to delay the vital diesel model until the Yen rate drops.
“At the current rate we would have to charge vastly more than we can justify for the diesel Impreza if we were to make a profit. As a result we can’t guarantee when the car will go on sale as we can’t predict when the economy will change.”
Subaru is not the only company suffering as a result of the poor exchange rate. Takeo Fukui, Honda’s chief executive, called on the Japanese government to ‘move a bit more swiftly’ to stabilise the Yen after the company announced that it could make a second-half loss. Toyota has also posted its first operating loss since 1941.
Though the Japanese government has intervened in its currency rates in the past, there is no guarantee as yet that any action will be taken in the current crisis.
Vicky Parrott
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