Honda Motor Co. President Takeo Fukui has rapped the government's "slow" response to the yen's sharp appreciation, saying further rises by the currency would hollow out Japan's auto industry through lost jobs and a shift of manufacturing, research and other activities overseas.
While economic worries and tight credit have hit all players in the global auto industry, Japanese carmakers are also suffering from the yen's surge as this erodes their earnings overseas.
Government officials recently hinted at possible market intervention to stem the rise of the yen, which has hit a 13-year high against the dollar, but in reference to this Fukui said, "They are too slow.