Strong yen to cut cash for Japanese carmakers' research and development

Japan's three leading automakers expect a stronger yen will cost them around 14 billion in lost operating profit this year alone -- just as they need to invest more in everything from cleaner fuel to driverless cars. After three years of supernormal profits on the back of a weaker currency, Toyota Motor, Nissan Motor and Honda Motor now face a reality check after the yen has turned around. While the recent years' currency boon filled automakers' coffers -- Toyota alone has around 10 billion in cash -- a squeeze on margins will put them under pressure to focus their investments, analysts say. "How to respond to yen rises while securing profits and continuing future investments -- this balance is important," Toyota Executive Vice President Takahiko Ijichi said this past week. The dollar climbed roughly 60 percent against the yen between late 2011 and mid-2015, a huge windfall for Japan's carmakers, but so far this year it is down roughly 9 percent against the yen.