For long, Detroit automakers explained their miserable sales numbers in Japan with somersaulting logic: “Our sales numbers are so miserable in Japan, because the Japanese market is closed to imports. Proof: Our miserable sales numbers.”

German carmakers in the meantime, notably Volkswagen, do not complain at all. They control 80 percent of Japan’s growing import market. Volkswagen’s small Up! turned into an especially hot seller, and Volkswagen’s executives in Japan emphatically deny that the market is closed.

Now, the Detroit Three are back in Japan with a revolutionary strategy: (Read More…)

LFA Chief Engineer Haruhiko Tanahashi says good-bye

As intimated last week, Toyota’s production of its LFA supercar is coming to an end. On Friday, LFA #500 left the assembly line at the secretive LFA Works in Toyota’s Motomachi plant. After a week of testing, the car will be delivered to its undisclosed owner. (Read More…)

In recent years, there was no way any car customizer in the world was going to come close to the absurd lengths that practitioners of Bōsōzoku Style in Japan went to when modifying their vehicles. Six exhaust pipes sticking ten feet straight up out of a slammed Corona with an octo-wing? Not enough! That’s a shame for patriotic Americans, because we once ruled the world when it came to brain-scrambling, utterly senseless customized vehicles. But wait! The love of 84s and old-timey lowrider-style kandy paint in Houston has led to a renaissance, and the SLAB (Slow, Loud, And Bangin’) may be knocking the Bōsōzoku Style machines off their pedestal. (Read More…)

Market share by country, passenger vehicles, w/o SUV

The island row does not make headlines anymore in China where people focus on the once in a decade transition of power. Japanese carmakers however still feel the pain. Two countries appear to be the winners: China and Germany. (Read More…)

With the stroke of a few pens putting signatures under a contract in Moscow today, then Renault-Nissan Alliance has become Russia’s largest automaker. The Alliance took control of AVTOVAZ, maker of the market-leading Lada brand. Lada holds 30 percent of Russia’s rapidly growing car market. (Read More…)

Toyota decided to postpone construction of a new plant in Tianjin, China, and is considering the delay of another new plant in Guangzhou, Japan’s Asahi Shimbun writes, quoting unidentified sources. This due to sluggish vehicle sales in the wake of anti-Japan protests over the Senkaku/Diaoyu islands dispute, Asahi Shimbun’s sources said. (Read More…)

In September, formerly red-hot sales of Japanese cars in China began to crater after cars were turned over and dealerships torched as fallout of a diplomatic row between Japan and China. Sales were down by about a half in October, and a little less than a third in November. At TTAC, we were skeptical that sales will be back to their old glory in a few months. A high ranking Toyota executive said for the first time that it will take long to recover. (Read More…)

In the bankruptcy auction for EV battery maker A123 that begins today, Reuters is reporting that NEC of Japan and Siemens of Germany are going to join China’s Wangxiang and Wisconsin’s Johnson Controls in bidding for the entire company.

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Toyota dropped out of Formula One in 2009, and said it won’t come back, claiming that the sports is “too elistist” and out of touch with Toyota’s customers. Now, the company is dropping hints that the door is not closed forever. Asked by The Nikkei [sub] whether Toyota might come back to the sport, Toyota Managing Officer Kiyotaka Ise was much less dismissive than in the past: (Read More…)

Buried In the depths of General Motor’s quarterly results is a routine litany of negative factors that could severely hamper the company’s future. One of them is “Significant changes in economic, political and market conditions in China.” GM intently monitors what is happening to Japanese brands in China, and it has more reason to watch with worries than with glee. What is happening to Toyota, Honda, and Nissan right now could just as easily happen to GM. The Japanese might shake off the troubles  – Japanese makers have seen worse in the very recent past. GM would be brought to its knees by a boycott of American cars in China. Quite possibly, one of the reasons behind the whole anti-Japanese exercise is to say “look what could happen to you.” Government Motors finds itself at the mercy of China. (Read More…)

Chinese sales of Japanese makes continue to suffer from the fallout of the islands row. Toyota told Reuters that Chinese sales were down 22.1 percent YoY in November. Mazda’s China sales were down 29.7 percent compared to November last year, Reuters says.  The severity of the drops has lessened, but it will be a while until Japanese brands return to their regular growth pattern in China. (Read More…)

When the Mitsubishi Pajero was brought to these shores, as the Mitsubishi Montero and the Dodge Raider, the bosses at Mitsubishi figured they’d just move the steering wheel to the other side and translate the text on all the controls from Japanese to English, end of story. As I learned while working for a localization company a few years back, this job is not always as simple as it looks. (Read More…)

Some forecasters expected Japan’s appetite for new cars to drop by more than 20 percent in the last quarter after government incentives expired in September. So far, it is not happening. Sales of new cars, trucks and buses declined a minuscule 0.4 percent in November. Elsewhere you may read that the market was down 3.3 percent, but they are not giving you the whole story. Sales of mini vehicles, or kei cars actually were up in November, pulling the market nearly completely out of minus territory. (Read More…)

In Europe, EU commissioners received the green light to start negotiations for an EU-Japan free trade agreement (FTA), despite the complaints of the auto industry, notably the one in Italy, and PSA in France, Reuters reports. Japan is the EU’s third-largest trading partner after the United States and China, and the architects of the FTA hope for 400,000 new jobs to be created in Europe as a result of the agreement. (Read More…)

A few weeks ago, Toyota’s CFO Satoshi Ozawa told an astounded press corps (and I paraphrase for brevity): “Sure, the riots in China have an effect, but we’ll make it up elsewhere in the world.” Today, we have the data that prove Ozawa-san right. What’s more, he could have spoken for all his Japanese peers. Yes, the boycott of Japanese cars in China caused drastic cutbacks at large Japanese automakers. However, all are doing so gulpingly well elsewhere that a buyer strike in the world’s largest car market turns into nothing more than a hiccup. (Read More…)