The yen fell to a historic low, potentially bringing $5.8 billion in profits to Japanese car companies.

```htmlGolden Ten Data reported on June 25 that although Japan is attempting to curb the yen from falling to a 40-year low, the weakened currency may bring substantial windfall profits to the country's car manufacturers this year. According to forecasts by various companies, assuming the yen remains near its current level, the overall upside potential for Japanese carmakers' profits is about 934 billion yen (approximately $5.8 billion). In its performance guidance released in early May, Toyota Motor Corporation assumed an exchange rate of 1 US dollar to 150 yen, while the current rate is around 161 yen. Toyota estimates that for each 1-yen depreciation, its operating profit increases by 50 billion yen, which means the company will benefit significantly from the continued weakness of the yen. Other automakers also adopted relatively conservative exchange rate assumptions: Honda used 1 US dollar to 145 yen, Nissan 150 yen, Subaru and Mazda 155 yen. Meanwhile, the decline in raw material and energy costs may exceed expectations. After a peace agreement was reached between the United States and Iran, oil prices calculated in yen have dropped by over 30% compared to the late-April peak. Senior analyst Tatsuo Yoshida stated that for carmakers like Toyota and Honda, which had incorporated the Middle East situation into their annual forecasts, recent developments could be "a major favorable factor." Additionally, falling gasoline prices may improve consumer confidence and support car sales.```