Japanese car makers consider giving Americans a
04-27-2005, 10:20 AM
#1
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Japanese car makers consider giving Americans a
[I]"Japanese designs are proving popular in the US
Japan's car makers should consider giving their US rivals a breathing space to avoid the risk of a political backlash, the boss of Toyota has said.
Japanese car makers have taken nearly one third of the US market. Last week, General Motors posted a quarterly loss of $1.1bn, and Ford's profits fell.
By contrast, Nissan had record profits, and Honda's net profit rose 27%.
"We need to give time for some American companies to take a breath," said Toyota Motor chairman Hiroshi Okuda.
Mr Okuda, who is chairman of the Japanese employers' group Keidanran, said he was "concerned" about the situation at General Motors, the world's biggest car maker.
New trade wars fear
"Although a trade conflict, like ones....in the past, may be avoided, there may be some impact, because the car industry is symbolic in the US economy," the Asahai Shimbun newspaper quoted him as saying.
GM cars lined up a showroom lot
GM is suffering from weak sales in North America
As a solution, he suggested either forming technical alliances with US firms, or raising the price of Japanese cars sold in the US.
However, a spokesman for Toyota later dismissed price rises. "Our basic stance is that prices are something for the market to determine," the company spokesman said.
During the 1980s, Japanese firms faced political tensions in the US as lobbyists for local industries accused them of dumping unfairly cheap goods on the North American market.
Since then, Japanese car makers have switched production to US factories and boast their cars contain a high level of locally-made parts, and US manufacturers have become more concerned about competition from China.
But in the last couple of years, the popularity of Japanese cars with American consumers has hurt US car firms. Toyota last year sped past DaimlerChrysler to take third place in the US market
Many motor industry analysts argue that US motorists prefer Japanese brands because US manufacturers' designs are dull and dated.
Honda profits
Honda continued the Japanese challengers' successes with its fourth quarter results on Tuesday.
Net profit rose 27% to 95bn yen ($896m;
Japan's car makers should consider giving their US rivals a breathing space to avoid the risk of a political backlash, the boss of Toyota has said.
Japanese car makers have taken nearly one third of the US market. Last week, General Motors posted a quarterly loss of $1.1bn, and Ford's profits fell.
By contrast, Nissan had record profits, and Honda's net profit rose 27%.
"We need to give time for some American companies to take a breath," said Toyota Motor chairman Hiroshi Okuda.
Mr Okuda, who is chairman of the Japanese employers' group Keidanran, said he was "concerned" about the situation at General Motors, the world's biggest car maker.
New trade wars fear
"Although a trade conflict, like ones....in the past, may be avoided, there may be some impact, because the car industry is symbolic in the US economy," the Asahai Shimbun newspaper quoted him as saying.
GM cars lined up a showroom lot
GM is suffering from weak sales in North America
As a solution, he suggested either forming technical alliances with US firms, or raising the price of Japanese cars sold in the US.
However, a spokesman for Toyota later dismissed price rises. "Our basic stance is that prices are something for the market to determine," the company spokesman said.
During the 1980s, Japanese firms faced political tensions in the US as lobbyists for local industries accused them of dumping unfairly cheap goods on the North American market.
Since then, Japanese car makers have switched production to US factories and boast their cars contain a high level of locally-made parts, and US manufacturers have become more concerned about competition from China.
But in the last couple of years, the popularity of Japanese cars with American consumers has hurt US car firms. Toyota last year sped past DaimlerChrysler to take third place in the US market
Many motor industry analysts argue that US motorists prefer Japanese brands because US manufacturers' designs are dull and dated.
Honda profits
Honda continued the Japanese challengers' successes with its fourth quarter results on Tuesday.
Net profit rose 27% to 95bn yen ($896m;
04-27-2005, 10:50 AM
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Wow, if I ever open up a business, I should do the same..."because our competitors' products are better in design and quality than ours, they should raise their prices and use other approaches to help my inferior company out". Damn, I hate politics...at work, with ppl, damn, it's everywhere.
04-27-2005, 11:04 AM
#4
This news is even scarier!
http://money.cnn.com/2005/04/08/commentary...stler/index.htm
Appearantly, not many people are interested in domestic automobiles anymore. Well, at least in those dealerships.
http://money.cnn.com/2005/04/08/commentary...stler/index.htm
Appearantly, not many people are interested in domestic automobiles anymore. Well, at least in those dealerships.
04-27-2005, 12:18 PM
#5
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I am waiting to see how hard the Big 3 (technically they are not the Big 3 anymore) have to fall until they start to design/build world-class cars once again. Maybe at the rim of bankruptcy, their worker's unions might loosen their grip. And maybe then the Big 3 realize consumers would not put up with cheap materials used in their cars, particularly in the interior.
04-27-2005, 12:35 PM
#6
Registered User
...or twist beam suspensions in brand new "world class" compacts. Everyone else has moved on to independent multilink designs long ago.
...or pushrod V6s used in midsize sedans and SUVs, when at the same price, DOHC units are available from the competition, with consistently better build quality (I'll concede the pushrod works in the LSX motors, but not in the V6s).
I read that GM union employees pay nothing for coverage. I pay about $90 a month out of my check, and I have what is widely regarded as excellent insurance. I also have copays and the like, too. It amazes me that they have people who likely didn't finish high school making 50% more than me (with a masters), with less hours, doing fairly menail redundant labor.
You would think that the union members would concede something to save their jobs. the whole seniority system of not caring about the newer guys and the fact that unions are run mostly by the veterans means they won't.
...or pushrod V6s used in midsize sedans and SUVs, when at the same price, DOHC units are available from the competition, with consistently better build quality (I'll concede the pushrod works in the LSX motors, but not in the V6s).
I read that GM union employees pay nothing for coverage. I pay about $90 a month out of my check, and I have what is widely regarded as excellent insurance. I also have copays and the like, too. It amazes me that they have people who likely didn't finish high school making 50% more than me (with a masters), with less hours, doing fairly menail redundant labor.
You would think that the union members would concede something to save their jobs. the whole seniority system of not caring about the newer guys and the fact that unions are run mostly by the veterans means they won't.
04-27-2005, 12:40 PM
#7
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IMO the market will set the price. There's nothing wrong with a neon that $6000 off won't cure.
I'm seeing town & country minivans advertized at $5K below invoice that's probably $10K off MSRP.
Toyota is saying maybe japanese makers should raise their prices? A Sienna minivan can top $39K. If thats not expensive I don't know what is. An Avalon can top $37K.
I'm seeing town & country minivans advertized at $5K below invoice that's probably $10K off MSRP.
Toyota is saying maybe japanese makers should raise their prices? A Sienna minivan can top $39K. If thats not expensive I don't know what is. An Avalon can top $37K.
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04-27-2005, 12:40 PM
#8
While the Japanese make very nice cars, that I prefer to buy, "dominating" might be a little strong. The article I read the other day says Japanese brands currently make up 30% of new car sales in the US.
That number is a lot considering the Korean cars, german cars, etc that are also sold here. Keep in mind that many of the Japanese "brand" cars are manufactured here as well. Still, not good for the US auto industry.
That number is a lot considering the Korean cars, german cars, etc that are also sold here. Keep in mind that many of the Japanese "brand" cars are manufactured here as well. Still, not good for the US auto industry.
04-27-2005, 12:52 PM
#10
Maybe the Japanese can match the deals with their employees just like the UAW's ones, increase their costs, dump down their technologies (eg. DOHC) and qualities, and increase their prices.
Maybe that will equalize the competition a little bit.
Dayum! That is very sad.
It reminds my Bush senior went to Japan over 10 years ago, and literally begged Japanese car companies to put American cars in their showrooms. Oh yeah, remember he passed out at one of those dinners. Of course, if I had to do what he did, I would have passed out in disbelief, too.
Maybe that will equalize the competition a little bit.
Dayum! That is very sad.
It reminds my Bush senior went to Japan over 10 years ago, and literally begged Japanese car companies to put American cars in their showrooms. Oh yeah, remember he passed out at one of those dinners. Of course, if I had to do what he did, I would have passed out in disbelief, too.