The yen's rapid rise, the country's high corporate tax and ever-intensifying competition are forcing makers of small cars to transfer production overseas.
This trend is expected to negatively affect the country's labor market because 8 percent of the nation's workforce have jobs related to the auto industry.
Mitsubishi Motor Corp. has decided to transfer its domestic production of mini- cars to Thailand and other nations over the next few years because the high yen and fierce price war have made it unprofitable to produce the cars in Japan.
"We can't stand the high yen anymore," a Mitsubishi Motor executive said. "Furthermore, this country's corporate tax is too high."
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