Dark clouds over the land of the rising sun. Japan Inc is deeply involved in the atrophy formerly known as the U.S. auto market. Two of what was known as the “Big Five” are Japanese: Toyota and Honda. Over the past 10 years, Toyota and Honda had been steadily taking market share from Detroit. Now, Detroit is in trouble. So is Tokyo, due to its inordinate exposure to the US auto market. Klaxons are sounding in Nippon. “Although their situations are not as dire as those harrying the top three U.S. automakers, major Japanese carmakers are rushing to review their operations and revise business plans in the face of quickly deteriorating auto sales worldwide,” writes the Nikkei (sub) today.

A side effect of Toyota’s race to become the world’s largest auto maker was that ToMoCo built more factories than some other companies built cars. Toyota’s production capacity rose by half a million annually since 2000. In North America, Toyota used to earn half of its worldwide profits. The crash in the US hit them real hard. Sales in Japan and Europe have also been decreasing faster than the firm can adjust production levels. To not end up like the formerly Big 3, Toyota has to act fast. A committee headed by President Katsuaki Watanabe is busy cutting costs and improving earnings in a stormy environment. What about Honda?

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The story about the defiled Lambo triggered a lively discussion about cars, hentai, anime, and otaku. Even about cosplay bars in Tokyo’s Akihabara (I’ve seen them all, boring.) Obviously, we had heretofore neglected a topic of high interest amongst our readership. In preparation for an even bigger role of Japanese transplants in the U.S., here some cross-cultural sensitivity training.

Since its heyday beginnings, Wired has suffered from what my (Japanese) wife characterizes as “yellow fever:” A fetish for Japanese women. Wired’s repeat offender “Japanese Schoolgirl Watch” is legend. Actually, Japanese schoolgirls are not much to look at, unless you are a pedophile and have a yen for plaid skirts and bobby socks. How does a lowly Lambo Gallardo get into Wired? It must look like a Manhattan subway car that was attacked by spray-can-wielding Japanese schoolgirls. This $>200K Gallardo belongs Japanese Age-Soft’s CEO Yoshida. He made the money to acquire the Lambo (and other likewise tagged wheels) with hentai videogames. “Hentai” means “pervert” in Japanese, but according to my wife (bless her heart) in Japan, that can be an honorific. Painting cars with manga characters is a new and somewhat itai (painful) Japanese fad. [Again, Autoblog gets it wrong. They write “In Japan, Otaku are the rabid fans of anime.” No true. Otaku is Japanese for geek. Ota-ku is also a ward in the south of Tokyo. Go figure.]

The Associated Press is reporting that General Motors now plans to sell back its 3.02 percent in Suzuki for $230m. Buckingham Research Group’s Joseph C Amaturo gets credit for pointing out that “while the sale is indicative of GM’s near-term liquidity challenges, the proceeds are not very meaningful.” In other words, it takes a lot of $230 millions to fill a $5b hole. “GM is expected to burn $4 billion to $5 billion in (the fourth-quarter) or roughly $1.5 billion per month. Hence, the cash proceeds from the sale of its equity stake will not even cover one week of expected cash burn,” Amaturo said. Not that it’s bothering Suzuki. “We fully understand the necessity for GM to raise cash,” Suzuki chairman and chief executive Osamu Suzuki noted dryly, adding that GM and Suzuki would continue to pursue a business partnership. Joint development of hybrid vehicles and a joint venture building sports utility vehicles in Canada are said to be on the collaboration agenda. The two automakers are also joint stakeholders in GM’s currently-stalled South Korean operations, GM-DAT. GM has owned portions of Suzuki since 1981, only selling off 17 percent in 2006. The saddest part of this story? It decreases the likelihood that GM will help bring Suzuki’s current (well-received) Swift to the states. Not that they needed a competitive small car or anything.

Japan’s auto manufacturing sector has relied heavily on guest workers in recent years, often from Brazil (thanks to the large number of Brazilians of Japanese decent.) “Japan has begun attracting large numbers of foreign workers only in the past 15 years to meet a labor shortage as the country ages,” the AP reports. “The increase has been rapid, more than doubling from 370,000 foreigners working legally in Japan in 1996 to 755,000 in 2006.” Japan is a famously immigration resistant nation, yet the allure of Brazilian nationals willing to work for $12/hour– instead of $20/hour rate for Japanese nationals– have cause a change in behavior, if not in attitudes. But now that hard times are hitting everywhere, the AP says these guest workers are being shown the door. Japan’s vaunted full employment tradition at major companies is built on a bit of a lie, or at least misdirection. There is a pecking order with full time employees of major name companies at the top and several layers of subcontractor assembly and parts suppliers below. The further down the chain you go, the lower the pay and the less the job security.  Guest workers are something of an embarrassment to Japanese citizens, and when times are tough, they are toughest for these “guests”. “‘The number of cars being produced is decreasing, so there’s nothing for the foreigners to make,’ said Masahiro Morishita, who works FujiArte, an employment agency that hires foreigners in Hamamatsu.” Foreign workers get the leftovers, never the main meal.

[Note: TTAC translation after the jump.] “About a month ago, “GT-R will be suspended orders,” “a temporary stop of the factory production line,” or “to raise RERURASHII” such as spreading rumors. Many were picked up by car magazines, so many of you already know it. In fact, readers have also been inquiries about the matter, MENAKATTA reliable information for the article said. However, “the temporary suspension order” of the rumors, apparently was real  We found that around October 6 from the dealer orders for the GT-R has been temporarily suspended. However, the resumption of orders from what is not known at the time. On the other hand, “a factory production line” and “raised” about the rumors about the missing evidence. Rumors about the two of the following hypothesis is based. “Hike” about the current economic situation surrounding the automotive industry and raise the performance of Nissan North America, will be given a very high probability. On the other hand, “is evolving every year,” said Mizuno’s remarks were as CVE, GT-R will adopt the IYAMODERU. Released after one year from now, but it is not equal to the period. If this year will be the timing of design changes. “Temporary stop of the factory production line” rumors, the line for renovation under the influence would come true. In any case, GT-R is considering a purchase if the sales rep and keep in close communication is necessary. However, a formal case for release from Nissan. Mizuno’s really in the head, such as Spec V story, including what is being depicted?

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( NEW) GTR R35 VS C6 Z06 - first street race.

Honda’s deputy chief operating officer for Japanese sales operations reckons his employer will hit its Japanese domestic market (JDM) sales forecast of 640k cars (down from previous estimates of 800k and 700k). “A lot depends on market conditions,” Hiroshi Kobayashi prevaricates. “But we should be able to easily reach that target at the current pace.” Kobayashi said that the figures could have been higher– if there were more Fits and Freed compact minivans on the ground. Unfortunately, Issac Newton was right. For every action there’s an equal and opposite reaction. Increases in Honda’s smaller car sales have led to a decrease in more profitable higher end cars such as the Step Wgn and Elysion minivans. No wonder, then, that plans to launch the Acura “near luxury” marque in Japan are cooling. Honda’s still pushing their hybrids and plan more fuel efficient models. But they’d better work on their profit margins, as they’ll be selling a lot more of their smaller cars in years to come.

The market for diesel technology just got a little more interesting. Nissan has announced they’ve become the first Japanese car maker to launch a diesel vehicle in Japan for six years. Nissan and Renault co-developed the X-Trail 20GT SUV’s oil-burning engine to create the world’s first Japanese emissions-pleasing “clean” diesel. The only other diesel car that meets the world’s toughest particulate regs: the Mercedes-Benz E320 CDI sedan. The Merc costs 8 million yen ($73,510); the X-Trail 20GT just 3 million yen ($27,710). Other car makers aren’t far behind. Volkswagen, Honda, Mitsubishi and Subaru are all planning to offer diesels in Japan. Meanwhile, Toyota’s pulled all diesels from their Japanese line-up (the last being the Land Cruiser Prado) and continue to push hybrids. With the Japanese government planning on placing consumer incentives on diesels meeting the new standards, and Toyota and Honda’s hybrids set to fall in price, it looks like Japanese enthusiasts will have a genuine diesel vs. hybrid debates. Lucky them.

There isn't a whole lot to say here. Daihatsu has just revealed a special trim edition of its "Move" Kei car, calling it the Move Conte. To this writer at least, it sounds like something that a rapper would yell at other cars out the window of his Escalade. Or, in the words of one forum commenter, "What cupid stunt thought this was a good name?"

Nissan has decided that using Toyota powertrains in its Altima hybrid is a bit embarrassing. So they're working on one of their own. If CNet is to be believed, "Nissan's system is designed for a rear-wheel-drive car, and uses two clutches, doing away with a torque converter for more efficient power use." That's right sports fans, he said rear-wheel-drive. But before the hybrid Z-car rumors get out of control, consider that "Nissan hasn't released any details on performance yet, or when it might offer a car with this technology." Mes anwhile, they're charging ahead with Li-ion EVs, apparently. PC World reports that "Nissan has committed to launch its first all-electric car in the U.S. and Japan in 2010 and to mass market the vehicle globally by 2012." The latest prototype is a version of Nissan's Cube. PC World got to take the 80kw beast out on the track. The verdict? "On the test track it easily got up to a speed of 100 kilometers per hour." Breathtaking. But wait there's more! Nissan also has a new fuel cell stack that is smaller and lighter than previous models. And it uses half the platinum of previous fuel cells (a development that'll likely alienate literally hundreds of DUB readers from the green movement). While it's nice of Nissan to remind us that technology marches on, it's no substitute for a here-and-now hybrid system. Y'know, like the one they buy from Toyota.

Bloomberg passed on an unsubstantiated report in Nikkei English News that claims Honda, Nissan and Toray Industries are teaming-up to develop new carbon fiber materials for mass-produced automobiles. Toray is the world's largest producer of carbon fiber. They're hoping to make it economically feasible to use the material in large enough quantities to reduce vehicle weights by up to 40 percent. Japan's Ministry of Economy, Trade and Industry is kicking in ¥2b over a five-year period to help fund the research. It didn't say if this project would be an extension of existing carbon fiber nanotube research, or if it will explore new materials. Either way, with new tailpipe and fuel economy regs in the offing, the race to add lightness has begun, plug-in hybrid or no.

Maybe I should put "smart" in quotes. But then again, maybe I shouldn't. I was commiserating with a friend of mine the other night how are respective 401k plans lost a third of their value last quarter. In his case, it was actual money. He commented that he had a lot of money in Blue Chips. I told him that GM's stock is worth less than two gallons of (Los Angeles) gas. He asked why. And I explained that the General had made billions of dollars selling trucks, bought Saab and then redesigned their trucks while losing over 30 percent of their market share in a decade and that Mr. Wagoner got paid $14,000,000 for his troubles, pre-bonus. My friend was incensed. "How is that American? That sounds like some third world, nepatistic despot shit?" He has a point. And what of the Japanese, he asked. Well, I began, Honda now makes the best-selling car in the country, Mazda and Subaru sales are up and Toyota has the ability to shift gears (and production) when they sense a looming great depression crisis. He asked me why, what is it about Japanese culture that lets them succeed where Detroit just falls flat on its face? I have my suspicions. But, I'd rather just ask you.

Japan has laws mandating the size of your waistline. And now the auto companies are slimming down their cars–any way they can. Automotive News [sub] reports Nissan plans to reduce its fleet's average weight by 15 percent by 2015 (from 2005 levels). Toyota is looking for a 10 percent loss. Mazda wants to pare 220 lbs. from each of its new models. Honda's trimming down (2008 Accord notwithstanding), but hasn't publicized any goals. Automakers are doing what they can to lose weight, from using aluminum and plastic body panels to re-engineering existing components to make them lighter. For example, the next Prius' electric motor will be one-sixth as heavy as the current powerplant; the batteries will weigh half as much. Honda's even going so far as to shave off slivers of steel between spot welds on the Fit to save a few ounces overall. Adding lightness is an expensive business, but with existing safety regulations and new fuel efficiency standards, there may be no choice.

Toyota's dominance in hybrid technology has other OEM's straining to leapfrog on to The Next Big Thing. While GM tries to beat ToMoCo to the PHEV punch, Mazda decided to combine three imperfect technologies into one over-the-top rolling lab. By modifying a Wankel rotary engine to run on hydrogen, and then adding a hybrid system, Mazda's Premacy Hydrogen RE Hybrid wins the prize for the most complicated possible approach to high-efficiency motoring. But let's not condemn this franken-hybrid to the scrap heap of engineering excess just yet. Wards Auto has learned that the Japanese Ministry of Land Infrastructure and Transport has given the Premacy Hydrogen RE Hybrid permission to undergo testing on Japanese roads. Of the three systems, hybrid technology is clearly the most promising. But Mazda's blind technophilia has mated it to an immature fuel source and an inherently inefficient ICE. Who cares that it gets 124 miles from a tank of hydrogen and boosts power 40 percent over a "standard" hydrogen Wankel. Mazda plans on leasing these people-movers in Japan later this year. Here's hoping that the lease comes with an uncompromising warranty.

For Edmunds, the upshot of writing what RF calls "Pimpatorials" is that they get to break inside information (although who knows how long they've been sitting on the news). The Inside Line folks report today that Infiniti is planning a small rear wheel-drive (RWD) coupe. The brand extension will be an entry-level two-seater slotting under the Infiniti G37 coupe. The new car would likely pack a smaller engine (2.5-liter V6?). That said, yours truly thinks that'll go out the window once the G37 upgrades to an even more powerful version of the VQ block. But Edmunds says the two-seater hardtop will focus on luxury, not performance. Odds are pretty darn good that this baby coupe will be a close relative of the new Nissan RWD sport coupe (perhaps wearing the legendary Silvia name) about which many have speculated. Sounds like the Nissan model, with naturally aspirated and turbocharged 4-cylinder engines, will be far more interesting. But Infiniti's conquest of the luxury world must march forward, even if that means going toe-to-toe with other badly conceived luxury models (cough – 1-Series – cough).