Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, April 15, 1995 TAG: 9504170046
SECTION: BUSINESS PAGE: A-6 EDITION: METRO
SOURCE: KIMBERLY D. DAVIS STAFF WRITER
DATELINE: LENGTH: Medium
The yen has gained more than 20 percent against the dollar so far this year. The gain has taken its toll on Japanese exporters, forcing them to increase overseas prices.
"In the long run, the price of cars will go up," said Michael Coyle, general sales manager at Rick Woodson Honda in Roanoke. "It doesn't have a direct relationship on our business."
The prices of imported cars have gone up every year for the last five years, Coyle said. "As the yen is going through this, the price will keep going up," he said.
Coyle added that price increases are not uncommon for auto dealers because they usually have about three price adjustments every year.
"It's just a question of how much it will go up," he said.
Honda is making parts and cars mostly in the United States because it's less expensive, Coyle said.
Consumer electronics, another major Japanese export to America, also has not yet felt the effect of a stronger yen. Circuit City Stores is not expecting any price increases, said Paul Rakov, a spokesman for the Richmond company.
"We purchase mainly in U.S. dollars," he said. "We don't really feel the impact of the increase. It's really absorbed by the vendors that we deal with, like Sony and Mitsubishi."
Rakov said Circuit City's customers needn't worry.
"We're not expecting any increased cost to us, so our customers shouldn't see a price increase," he said.
But another Roanoke appliance chain expects to feel the squeeze.
"We will see some price increases within the next 60 days," said Steve Terry, vice president of Holdren's Inc. of Roanoke.
"It's costing more to build, " the products, he said. "We're seeing nothing but price increases from the manufacturers."
A lot of the VCRs are made in Mexico and Taiwan, but most of the parts are made in Japan, Terry said.
Because the dollar's value has declined, he said some shipments have been delayed.
Terry also said "most people are waiting to see" what will happen before they purchase appliances.
"We've been through some changes before," he said. "If [the prices] stick, it'll turn back around. People recognize that there will always be price increases, and that if they need the product, they will pay for it."
by CNB