There probably is no other major car market where oil-burners play less of a role than in Japan. Even diesel-averse Americans buy more. Excitement about brown diesel wagons notwithstanding, diesel-powered cars limp along at around 3 percent market share in America. In Japan, where diesel-powered cars were banned from the streets of Tokyo 14 years ago, and where they carry the onus of being smelly, their market share is below miniature one percent. In both markets, there are hopes for a big diesel turn-around. (Read More…)

In some ways my initial move across the Pacific was a lot easier than my return. I was at the end of my personal rope when I went to Japan in 1999 and, even though I was stepping into a dead end job, there was nowhere to go but up. Coming home was quite the reverse. Of course I had a job offer, but I had learned the hard way about birds in the hand versus the two in the bush and, truth is, I was scared. I had carved out a nice little life for myself in Japan. I had friends, a decent place to live and, for a change, money in my pocket. I had even purchased a car and a motorcycle, but now it was time to sell out and move on.

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April sales in Japan were up 1.5 percent in April, with sales of kei cars lagging behind resurging regular cars while imports surprise. (Read More…)

Last weekend, we were in Kuniyoshi, Chiba, the peninsula across Tokyo Bay, to check on some old cars. This is what and who we met.
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Jac Nasser, the former head of Ford, is warning that Australia’s car industry has passed the point of no return, and expects to see it die within the next few years.

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The retreating yen allowed Honda and Mazda to report bigger profits for the last quarter of their April to March fiscal year. Now the two are faced with a new problem, one that will also be shared by its Japanese peers: Higher costs of badly needed foreign investments. (Read More…)

Folks who are not intimately familiar with the peculiarities of the European auto industry often call Renault a similar basket case as its French rival Peugeot. January through March, both are down in Europe, PSA (-15.3 percent) more than Renault (-8.3 percent), but the big difference is that Renault has a much wider international footprint. What’s more, Renault owns 44.3 percent of Nissan. This international footprint helps Renault solve problems in ways Peugeot can’t touch. For instance, by making Nissans. (Read More…)

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…)

The Avalon has been something of a caricature since it wafted on stage in 1994. The stretched Camry was low on soul, devoid of style and soft of spring. In short, it was the Buick that wouldn’t leave you stranded. Since then Toyota has struggled to divine a mission for their full size sedan, a problem complicated by the re-invigoration of the large sedan market by the American brands. In hopes of resurrecting sales numbers, which have slid to 25% of their 2000 year shipments, Toyota has injected something hitherto unseen in an Avalon: style. Is it enough?

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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…)

The booths of Japanese automakers were mobbed today just like those of any other automaker at the Shanghai Motor Show. The action at the showrooms are a different matter. Sales of Japanese cars in China remain problematic more than half a year after rowdy crowds took to the streets last September to torch Japanese cars and showrooms. Sales of Japanese cars in China were down 14.3 percent in March while sales of U.S. carmakers were up 31.1 percent. Sales of German brands rose 24.6 percent.

Toyota does not expect to reach positive territory until August this year, Hiroji Onishi, head of Toyota’s China operations, told a small circle of reporters this morning at the Shanghai show. Asked why August, another Toyota executive quipped: “After previous riots in 2005 and 2010, it took half a year to recover. We figure, this time it might take twice as long.” (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…)

Honmoku street is a wide, tree lined avenue that bends through the southern “Naka” district of the city of Yokohama. Close by sits the massive port, the gateway through which so much of Japan’s industrial output is sent to the world, its tall cranes working ceaselessly and with no regard for human concerns like the time of day. Above it all the Yokohama Bay Bridge soars like a vision, lifting cars and trucks across the entrance to the harbor as effortlessly as it straddles the line between art and infrastructure. Although the massive bridge and its double decked feeder highways encircle the entire district, the sense one has on the ground is of open space and nature, rarities in the second largest city in Japan. In the midst of it all sits the classic American Hot-Rod shop, Mooneyes.

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