CHICAGO, IL- Currency manipulation is the “major trade barrier of the 21st century,” according to Ford Motor Co. President of the Americas Joe Hinrichs.

The Ford executive, speaking Thursday during the 2014 Chicago Auto Show, spent a good amount of time during a keynote speech discussing global competitiveness in the automotive industry, including currency manipulation.

“The real elephant in the room now is currency manipulation, and we need to make sure that it is not ignored,” he said. “It represents the major trade barrier of the 21st century — and it must be addressed in any future U.S. trade agreements.”

Currency manipulation, also known as exchange rate intervention, is when a country uses its own currency and buys up foreign reserves like the U.S. dollar, weakening its own currency. A weak currency cheapens the price of a country's exports, making them more attractive to international buyers by undercutting competitors.

Hinrichs used Japan as an example of unfair trade practices, including currency manipulation.

Citing Morgan Stanley, Hinrichs said weakening of the yen puts roughly $2,000 per export vehicle in the pockets of Japan’s three largest automakers -- Toyota, Nissan, and Honda. "When Toyota came out and said half their profits are due to currency change of the yen, that's a big deal,” he told reporters after his speech.

Hinrichs' remarks come days after Toyota announced profits quintupled last quarter and raised its forecast for the year ending March 31 to an unprecedented 1.9 trillion yen, according to Bloomberg.

Japan has reportedly denied it is currently manipulating its currency.

Ford, according to Hinrichs, has never urged Congress to oppose a free trade agreement, but that may change if the Trans-Pacific Partnership, or TPP, agreement stays how it is today.

“TPP is not likely to generate any net benefits for American manufacturers if it does not address the critical issue of currency manipulation,” he said.

The TPP -- intended to enhance trade and investment among the involved countries -- is a proposed trade agreement under negotiation by Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico,New Zealand, Peru, Singapore, the United States, and Vietnam.

During his speech, Hinrichs also called for the U.S. to develop a “coherent manufacturing policy,” including tax reforms to reduce rates and simplify the tax code, and an integrated energy policy.

Following his speech, Hinrichs also took questions from some of the hundreds in attendance, including the all-new F-150 and Ford CEO and president Alan Mulally.

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