Traditionally, its been the Japanese that have commanded manufacturing of the automobile industry. the world’s 3rd largest automobile manufacturer and exporter, and has 6 of the world’s 10 largest automobile manufacturers. It is where many of the most famous car brands are from including: Acura, Daihatsu, Datsun, Hino, Honda, Infiniti, Isuzu, Lexus, Mazda, Mitsubishi, Nissan, Subaru and Suzuki.
Indeed by 1985, Japanese automakers had been established as the top in this field with innovations being made in manufacturing systems, management systems, and automotive materials. They were also top environmentally-speaking at this time with 75 percent of Japanese cars being recyclable. Around a decade later Japan was well into the luxury car market boasting top high end brands like Acura and Lexus.
The Japan automobile industry boasts a lot of firsts also. It was the first to introduce robotics manufacturing in car production, as well as Hybrid and Electric car technologies.
But what’s happening now? According to a recent article in Bloomberg by Anjani Trivedi, Japan’s automakers might soon be pushed out of the US, which would potentially re-direct them to China. With Donald Trump’s new legislation since US authorities are now “considering making imported cars meet stricter environmental requirements [such] non-tariff barrier would dent manufacturers including Toyota Motor Corp., Nissan Motor Co. and Honda Motor Co., which together command about one-third of the market.”
Furthermore:
“Auto sales in the U.S. increased just 6 percent in March from a year earlier, and Japanese manufacturers struggled to keep pace, with Toyota, Nissan and Honda clocking average growth of 2 percent. Light trucks, rather than sedans, where the Japanese excel, are also becoming more popular, while the cost to companies of shifting a car, including buyers’ incentives and other marketing expenses, is rising.”
The idea behind Trump’s new policies is – according to Timothy Puko – said to be “designed to reduce the relative cost of cars manufactured in the U.S., by American workers…. U.S. auto makers and industry lobbyists have complained they are blocked from foreign markets by nontariff barriers. The U.S. car industry claims foreign auto makers face few of these barriers when shipping to the U.S., with Japan and Korea among the biggest targets of these grievances.”
So time will tell exactly which region will end up in the fast lane…
