The yen's fall to a historic low could bring Japanese automakers $5.8 billion in revenue.

According to Odaily Odaily, despite Japan's efforts to stem the yen's fall to a 40-year low, the weak currency could bring substantial unexpected profits to the country's automakers this year. Based on company forecasts, assuming the yen remains near its current level, Japanese automakers could see an overall profit upside of approximately 934 billion yen (about $5.8 billion). In its earnings guidance released in early May, Toyota Motor Corporation assumed an exchange rate of 150 yen to the US dollar, while the current level is approximately 161 yen. Toyota estimates that for every 1 yen depreciation, its operating profit will increase by 50 billion yen, meaning the company will significantly benefit from the continued weakness of the yen. Other automakers have also adopted relatively conservative exchange rate assumptions: Honda at 145 yen to the US dollar, Nissan at 150 yen, and Subaru and Mazda at 155 yen. Meanwhile, the decline in raw material and energy costs may exceed expectations. Following the US-Iran peace agreement, crude oil prices, measured in yen, have fallen by more than 30% from their peak in late April. Senior analyst Tatsuo Yoshida stated that for automakers like Toyota and Honda, which have already incorporated the Middle East situation into their full-year forecasts, recent developments could be a "major positive factor," and lower gasoline prices could also improve consumer confidence and support car sales. (Jinshi)