June 26, 2016, 04:39:47 AM

Author Topic: Canon CEO Very Dismayed by Brexit, Could Halt Japan Recovery  (Read 5161 times)

TAF

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Re: Canon CEO Very Dismayed by Brexit, Could Halt Japan Recovery
« Reply #60 on: June 25, 2016, 10:39:15 PM »
I am interpreting Fujio Mitarais statement quite differently than most of participants in this topic.

In first part it sounds like he considers strong Yen a good thing, at least for Japan if not for Canon inc.
“In Japan, while we can expect to see a temporary surge in the value of the yen,

Second part part sound different, as if it should begin with BUT - Strong Yen is good BUT Brexit is bad news.
...the U.K.’s decision could also bring a halt to the economic recovery that had been underway,”


Let me offer another possibility that might concern him, but which he cannot publicly admit to.

In the world of 'globalization', a CEO is expected to move his production where he can get the cheapest labor, and thus maximize profit.  Canon has minimized doing this on all but their cheapest gear (China) and maintained their 'Made in Japan' cache because it allowed them to ensure the highest possible quality.  He can say with all honesty that keeping production in Japan is better for the company because quality has value in its own right (lots of other companies have forgotten this, to they ultimate undoing).

The fact that the Japanese and Chinese don't really like each other isn't spoken of, because it need not be - there is a better reason (read: excuse) available.

If either the Pound or Euro (or both) take a nosedive and stay down, not only will it be more difficult to sell in those countries due to the unfavorable exchange rate, it will become likely that there will be a push to move some production there due to the (now) lower costs, and the marketing advantage local production provides.

Yet I suspect he probably isn't going to want to do this, but the quality excuse doesn't fly.  Both the UK and Europe have highly skilled optics and micro-technical industries.  If they became cost competitive, it would make good business sense to make things there.  So how does he handle that?

Worst of all, they (the UK and Europe) will also become competitors (again).  Imagine a resurgent Rolleiflex...

That's probably what really has him worried.  Japan hasn't had a competitor in the camera arena in decades.  That may change here soon.

Exciting times.

canon rumors FORUM

Re: Canon CEO Very Dismayed by Brexit, Could Halt Japan Recovery
« Reply #60 on: June 25, 2016, 10:39:15 PM »