Japanese carmakers, which barely have recovered from the effects of the March 11 earthquake and tsunami, find themselves in another catastrophe. Floods in Thailand cost Japanese automakers approximately 6,000 cars a day, Toshiyuki Shiga, chairman of the Japan Automobile Manufacturers Association, said today in Tokyo. (Read More…)

The exodus of Japanese automakers continues – this time, in the opposite direction. If the sources of The Nikkei [sub] are right, then Mazda will stop making the Mazda6 in the U.S. and move production to Japan and China. (Read More…)

According to U.A.W. talking points, the Japanese car market is closed to foreign imports, and the yen is kept artificially low. Utter insanity on both counts. The customs duty on new cars imported to Japan is exactly zero, and the yen is so obscenely expensive that Japanese carmakers openly threaten to leave and privately are shifting as much production as possible out of the country. Unbeknownst to talking point readers, Japan has had a thriving car import market for decades. For more than a year, imports to Japan showed an uptick. TTAC has been taking about this for quite a while,  here, then here  and also here.

Today, The Nikkei [sub] did wise up to the fact that imports are getting hotter in Japan despite a tepid new car market. The Nikkei sent a reporter to an Audi showroom, interviewed a BMW customer, and noted a societal change: “My wife prefers foreign cars, so that’s why we bought one,” a bank employee who traded his domestic car for a BMW told The Nikkei. “They have lower fuel efficiency than Japanese cars, but that is not a big problem because we drive only on weekends.”

Now what’s really going on with imports to Japan? Let’s look at it a little closer. (Read More…)

Six months after having been devastated at home by the March 11 earthquake and tsunami, “Japan has experienced its largest overseas investment loss ever as a result of the flood disaster in Thailand,” Japans’s ambassador to Thailand Seiji Kojima told the Bangkok Post. (Read More…)

So there’s this gaijin with one-piece injection-molded plastic hair, like Ken, and he’s firing up the Tredia in some Delysidic maze. Then he sees these, uh, geese… (Read More…)

The admonitions by Lower Saxony’s premier to wash dirty laundry in the privacy of your office appear to bear fruit – at least for the time being. Volkswagen has agreed to a cease-fire in the war of words with Suzuki. (Read More…)

If the war of words and press releases between Suzuki and Volkswagen escalates into a legal duel, then the showdown will not happen in a court of law.  Germany’s Handelsblatt learned that the “secret cooperation agreement between Volkswagen and Suzuki specifies arbitration in case of differences.”

Commonly, arbitration is binding in these cases. It may not even come to that. David McAllister, Premier of Volkswagen’s home state Lower Saxony, which holds 20 percent of Volkswagen, intervened over the weekend. (Read More…)

The trouble with EVs is that they need batteries. Batteries are expensive and heavy, they deplete quickly and are prone to early death. Japanese carmakers and universities are assaulting the problems head-on. They have batteries that go twice as far and live twice as long. But there is a new problem … (Read More…)

Divorces usually get messy when there is money involved. The Suzuki vs. Volkswagen case is no exception. There are irreconcilable differences. Suzuki wants out, Volkswagen would like to swallow Suzuki whole. The rest are accusations and counter-accusations that are as interesting as divorce papers. In the last days, the Kabuki dace went into a new phase as both sides ratchet up their rhetoric. (Read More…)

Japanese carmakers are driven out of the country by a rising yen and an urge to diversify their production after the catastrophic March 11 tsunami. A favorite destination is Thailand. Due to free trade agreements with many nations, Thailand increasingly morphs from the Land of Smiles to a South East Asian production and export hub. Now, most car production in Thailand is stopped – again because of killer floods. (Read More…)

While U.S. Senators are wringing their hands and pounding their chests about EV know-how allegedly escaping to China, makers from other countries are doing business. The most recent EV entry is Honda. Honda will build an EV in China and sell it in China in 2012 “in limited quantities,” its R&D chief Toshihiro Mibe told TTAC in Chengdu. The electric vehicle will undergo tests this year. When ready, the EV will be launched under the Honda brand. When asked, Honda spokesperson Natsuna Asanuma was convinced that the Honda EV will qualify for Chinese subsidies.

Mibe dismissed know-how issues: “An EV is much simpler than a regular car. The only difference is the battery and the electric motor.” (Read More…)

The not quite so rare earth is getting less rare by the day. The stuff that had raised the specter of a Saudi-sized rare earth embargo by the crafty Chinese is being engineered into oblivion.It also shows up en masse in the strangest places. Such as on the bottom of the sea. (Read More…)

While the discussion about the value of the yen continues (also at TTAC), the exodus from Japan is picking up steam. Toyota is joining other carmakers that quietly turn India into a car export nation to be reckoned with. Toyota’s Chief Engineer Yoshinori Noritake  (above) soon will be able to smile: Toyota’s subsidiary in India will export Toyota’s and Noritake’s “BRIC car”, the Etios, to South Africa in March 2012. (Read More…)

Mazda confirmed what the world had known for more than a year: Its iconic, Wankel-powered RX8 is going to die. “Mazda RX-8 production will end in June 2012 ,” says a Mazda statement. Mazda celebrates the end of an era in style.  The Hiroshima company lays on a Mazda RX-8 SPIRIT R special edition that will keep the spirit alive after the RX8 has given up its ghost.

Whither the Wankel? (Read More…)

Again and again, Japanese automakers had been warning that they cannot stomach the strong yen, and that it will eventually cost jobs. Today, the yen stood  at 76.6 to the dollar, and Japanese carmakers are packing. (Read More…)