As predicted by TTAC after Chinese demonstrations against Japan’s control of the Senkaku/Diaoyu islands turned into violence against Japanese cars and car dealerships in China, the matter turned into a severe sales setback for Japanese car companies in China, more severe than initially thought, or hoped. Also as predicted by TTAC, the islands did affect the sales of Japan’s carmakers more than the tsunami.  Last Saturday in Shanghai, Toyota’s China chief confirmed that the pain would be felt at least through August.  This was before he heard the really bad news. Read More >

In the past, Toyota had tried to resist the urges of the Chinese government to establish new joint-venture brands. The company also had been highly skeptical of the viability of the electric vehicle. All doubts have been tossed over board. Toyota launched two new brands and two new EVs in China. Read More >

Now that the U.S. and Japan have agreed on a watered-down version of the Trans-Pacific Partnership trade negotiations (America will keep its beloved chicken tax for at least another decade, Japan will protect its rice farmers from the evils of cheap American rice,) negotiations between  the EU and Japan about a trade pact are getting underway, with considerably less drama. Read More >

“Japan effectively sealed its participation in Trans-Pacific Partnership trade negotiations Friday after reaching an agreement with the U.S. over its entry into the talks for the emerging regional free trade pact,” says The Nikkei [sub] . Read More >

Ferrari abandons its trademark red for a limited-edition version of the California 30 convertible targeted at the Japanese market. Read More >

Have you experienced panic attacks due to a wayward and unfindable car key? Toyota’s parts arm Denso is here to help, for a 3,980 Yen ($41) fee. That’s the JDM cost of Denso’s key finder, a small receiver with a buzzer and a LED light that can be wirelessly activated by a smartphone via Bluetooth. Read More >

For anyone like myself – that is, a car fan who grew up in the 1990s and watched Japan’s sports cars disappear from the American market in one sudden swoop, news that Japan’s once mighty auto industry is being “hollowed out” might come as a shock. The cars that defined my youth – the RX-7s, Supras even the VTEC Honda compacts, are a distant memory. Most of what Japan offers on our shores are aimed at the mainstream, while at home, kei-cars and hybrids dominate the market.

A lot of the criticism leveled at Japan is that their focus on the mainstream market and alternative powertrains is what sparked their auto industry’s current malaise. But this is a superficial and fallacious assumption that supposes that the glut of superb Japanese cars in the 1990s is a baseline for our expectations of what a Japanese auto maker should be building and selling. In fact, it is an aberration that will never occur again.

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They may not have western-style unions in China, but workers sure do strike. Workers at Honda’s transmission plant in Foshan, Guangdong Province, walked off the job on Monday after their pay increases weren’t as large as they had hoped. Read More >

It’s not just the UAW that is upset about free trade agreements. The Koreans are likewise. The offices of the Korea Automobile Importers and Distributors Association were raided by investigators of the country’s Fair Trade Commission, the Financial Times reports. The agency alleges that BMW, Mercedes-Benz, Volkswagen and Toyota Motor were involved in price collusion. Read More >

Typical Japanese Highway scene

Total silence is not the kind of thing you expect in Japan. Given the fact that there are almost 130 million people crammed into a country roughly the size of the State of California, only 20% of which is actually habitable, the din of human activity follows you wherever you go. It is an incredibly urban environment, filled with people, heat and activity. Yet when I turned off the engine and stepped out onto the empty road and into the cool stillness of the summer night, I felt like I was the only person in the world.

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Attentive readers of TTAC have known it since the Beijing Auto Show last year that Toyota will launch a separate brand for its “new energy” (read plug-in hybrid and EV) that are produced in China. A not quite officially announced, but de facto policy wants it that way. Now we have the brand. It’s called Ranz. Read More >

When Toyota gets on the horn by lunchtime to tell Tokyo’s media to show up at 4:30 the same day, everybody knows it will be a big surprise and an even bigger deal. Today, Japan’s Fourth Estate already knew what’s coming when the phone rang. It still was a big deal: Toyota completely reshuffled its top executives. It even brought a non-Japanese on board, a former GM man to boot. Read More >

My TDI in Japan

The engine quit with a sudden un-dramatic snap, and the little Golf TDI began to slough off speed. Reflexively, I bumped the gearshift lever into neutral, flicked on my signal and began moving towards the left edge of the expressway. My exit was less than a mile away and, rather than stop alongside the highway, I used my momentum to coast up the off-ramp and over the small knoll that stood between the expressway and the toll plaza. I stopped there, on the back side of the hill where the road widened on the approach to the toll booths, to avoid blocking traffic and dug out my cell phone to call for a tow truck. I didn’t know it then, but it was the last time that I would ever sit behind the wheel of the little car, never mind the fact that it would follow me again around half of the globe. Read More >

As expected, sales of Japanese cars in China took a nosedive to levels not seen since the days after Japanese cars and dealerships were torched last September. Sales of Nissan and Toyota are down a whopping 46 percent. No, it’s not a new flare-up of anti-Japanese riots. This time, it’s the effect of the Chinese Lunar calendar. Read More >

Japanese automobile sales were down eight percent in  February 2013, compared to the same month in the prior year. This according to consolidated data by the Japan Automobile Dealers Association and the Japan Mini Vehicles Association. Read More >