Suzuki Motor shares soared almost 5% after a newspaper reported it planned to shift part of its engine production abroad due to the strong yen.
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Suzuki denied the story, saying it had no plans to reduce its annual production of 800,000 engines for vehicles assembled at factories in Japan for domestic sales and exports.
“We have been saying we want to replace shipments of parts to Hungary and Indonesia to build engines there with local procurement, considering the yen’s strength,” a company spokesman told AFP.
“The engine output (in Japan) will not be reduced from 800,000 unless domestic demand falls,” he said.
“It’s positive in the sense that the company will be able to better address the impact from the stronger yen,” a fund manager at a Japanese asset management firm told Dow Jones Newswires.
