Jump to content
  • William Maley
    William Maley

    Why President Trump's Dream Of Selling More U.S. Cars In Japan Isn't Going To Happen

      Its all about that perception

    Yesterday, President Donald Trump announced that he had reached an agreement with Japanese Prime Minister Shinzo Abe to open trade talks between the two nations. Previously, the president had threatened a 25 percent tariff on cars to reduce imports and encourage more production in the U.S. The two agree that the "sanctions on auto exports won’t be applied while the talks take place."

    A key topic of talks will likely be giving better access to U.S. cars to be sold in Japan, something President Trump has complained about before. Data from Japan’s auto industry associations said only 0.3 percent of the 3.2 million vehicles sold in the country this year when American brands. Contrast this to 40 percent of the U.S.' market share being made up by Japanese automakers according to Bloomberg.

    But there arises a problem with Trump's ambition, Japanese buyers aren't interested. Japan has argued time and time again that the reason American automakers don't do some well is the perception of that American cars are " bulky and inefficient". There is one American brand that bucks this trend, Jeep. According to Bloomberg, Jeep sold more than 7,000 vehicles in the first eight months of this year - beating all other U.S. brands combined.

    Source: Bloomberg (Subscription Required)



    User Feedback

    Recommended Comments

    America excluding JEEP, just does not understand how small this country is. The roads, space, etc. do NOT support America where everything is supersized. I totally do not see much growth ever in Japan for majority of US auto brands.

    • Upvote 2

    Share this comment


    Link to comment
    Share on other sites
    26 minutes ago, dfelt said:

    America excluding JEEP, just does not understand how small this country is. The roads, space, etc. do NOT support America where everything is supersized. I totally do not see much growth ever in Japan for majority of US auto brands.

    Agreed.  From what I have been reading most of the people use public transportation day to day anyway and space and size is in premium.  Even in Europe, which I assume might be slightly better for space than Japan can't really use anything that is sold in US except maybe Jeep Renegade, which pretty much was designed for Europe and actually quite popular there,

    Share this comment


    Link to comment
    Share on other sites
    46 minutes ago, ykX said:

    Agreed.  From what I have been reading most of the people use public transportation day to day anyway and space and size is in premium.  Even in Europe, which I assume might be slightly better for space than Japan can't really use anything that is sold in US except maybe Jeep Renegade, which pretty much was designed for Europe and actually quite popular there,

    Having gone to college at Kobe University and staying with a family. I was allowed to use their son's Ninja bike as he never rode it. Japan is very small and tight on space and their Buss, taxi and train system is the best in the world. 98% of the time you do not need an auto to get around unless you are rich. Auto's are mostly for the rural areas, not the inner city where the bulk of the citizens live. 

    I rode the lovely bike they had bought for their spoiled son on the weekends in the mountains where there is no speed limits and huge mirrors on all the corners, you just carve up using the whole road.

    • Upvote 2

    Share this comment


    Link to comment
    Share on other sites

    With American brands cars going extinct left and right and the majority of US assembled import cars being for import consumption.

     

    Literally the best they can probably do is probably nothing. You see Japan having the capability to build their own carrier commercial aircraft or fighter jets, and Japan doesn’t complain that American makes like Boeing and Lockheed do so well there...

     

    There’s an example specialization that works handily.

    Share this comment


    Link to comment
    Share on other sites

    Japan's auto market is hardly growing all that much AND most US cars are not made for Japan.  This agreement will not change those facts on the ground at all.

    • Upvote 1

    Share this comment


    Link to comment
    Share on other sites

    Japan’s having a population implosion and their car market is in the process of cratering.

     

    none of their automakers can even survive on the JDM, and what is also true is that Japanese cars haven’t changed in decades. They’re all really tiny boxs that are fancy golfcarts. Part of why so many Indian cars in the modern Indian car market also use a tin pot style formula for cars.

     

     

    Share this comment


    Link to comment
    Share on other sites

    Jeep has really strong brand image and the styling really works too.  This makes it a desirable brand all over the world.  And they have 3 SUVs on the smaller side, the Cherokee is the size of an Equinox and they have 2 smaller than that.

    Japanese don't buy American because a lot of American cars aren't that good.  The class leading American cars are full size pickups and SUVs and that stuff won't sell in Japan or Europe either.  If American brands had best in class small sedans and small and compact crossovers I bet they'd sell over seas.

    Share this comment


    Link to comment
    Share on other sites
    16 hours ago, dfelt said:

    Having gone to college at Kobe University and staying with a family. I was allowed to use their son's Ninja bike as he never rode it. Japan is very small and tight on space and their Buss, taxi and train system is the best in the world. 98% of the time you do not need an auto to get around unless you are rich. Auto's are mostly for the rural areas, not the inner city where the bulk of the citizens live. 

    I rode the lovely bike they had bought for their spoiled son on the weekends in the mountains where there is no speed limits and huge mirrors on all the corners, you just carve up using the whole road.

    Sounds like a really cool experience

    • Thanks 1

    Share this comment


    Link to comment
    Share on other sites
    On ‎9‎/‎29‎/‎2018 at 4:21 AM, daves87rs said:

    Japan is just not built for cars......at least not any more....

    Certainly not American cars.  A Cruze is a large mid-size over there.  I can't imagine trying to pilot something like a Continental or Navigator.  You'd have to be hyper-rich to afford those cars in Japan. 

    • Upvote 1

    Share this comment


    Link to comment
    Share on other sites
    35 minutes ago, Drew Dowdell said:

    Certainly not American cars.  A Cruze is a large mid-size over there.  I can't imagine trying to pilot something like a Continental or Navigator.  You'd have to be hyper-rich to afford those cars in Japan. 

     

    Yep, cost being another major reason as well. And their population finally is growing again....not going to leave much space for cars....

    Share this comment


    Link to comment
    Share on other sites


    Join the conversation

    You can post now and register later. If you have an account, sign in now to post with your account.
    Note: Your post will require moderator approval before it will be visible.

    Guest
    Add a comment...

    ×   Pasted as rich text.   Paste as plain text instead

      Only 75 emoji are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor

    ×   You cannot paste images directly. Upload or insert images from URL.




  • Similar Content

    • By William Maley
      Ask Peter Welch, the CEO of the National Automobile Dealers Association (NADA) what worries him the most, he'll admit that it is average consumers getting priced out of new cars.
      He admitted this yesterday at the Automotive News World Congress in Detroit. Welch said that the latest figures he has seen - through October of last year - reveal the average retail price of a new car climbing to a new high of $35,366. The average monthly payment is hovering at $538, and interest rates have climbed to an average of 5.76 percent (new) and 9 percent (used). Longer loan terms are becoming common, with the average length standing at 64.3 months.
      "You know, people buying $55,000 pickup trucks with $1,000-a-month payments — I've never seen it. A lot of people don't think that's sustainable," said Welch.
      "That is going to put a giant dent in the SAARs and it almost makes me wonder if at some point we're going to see another Henry Ford," offering new and more affordable vehicles.
      Aside from more people buying more expensive trucks and utility vehicles, Welch said other reasons for the increases in prices come down to new fuel economy standards and safety equipment. He sees new car prices rising towards $40,000 with $800 monthly payments.
      On a slightly positive note, NADA predicts that 16.8 million light vehicles will be sold in 2019. While down from 17.3 million in 2018, Welch notes there are some positive economic indicators "such as high employment rates, a solid GDP and a healthy economy overall."
      Source: Automotive News (Subscription Required) 

      View full article
    • By William Maley
      Ask Peter Welch, the CEO of the National Automobile Dealers Association (NADA) what worries him the most, he'll admit that it is average consumers getting priced out of new cars.
      He admitted this yesterday at the Automotive News World Congress in Detroit. Welch said that the latest figures he has seen - through October of last year - reveal the average retail price of a new car climbing to a new high of $35,366. The average monthly payment is hovering at $538, and interest rates have climbed to an average of 5.76 percent (new) and 9 percent (used). Longer loan terms are becoming common, with the average length standing at 64.3 months.
      "You know, people buying $55,000 pickup trucks with $1,000-a-month payments — I've never seen it. A lot of people don't think that's sustainable," said Welch.
      "That is going to put a giant dent in the SAARs and it almost makes me wonder if at some point we're going to see another Henry Ford," offering new and more affordable vehicles.
      Aside from more people buying more expensive trucks and utility vehicles, Welch said other reasons for the increases in prices come down to new fuel economy standards and safety equipment. He sees new car prices rising towards $40,000 with $800 monthly payments.
      On a slightly positive note, NADA predicts that 16.8 million light vehicles will be sold in 2019. While down from 17.3 million in 2018, Welch notes there are some positive economic indicators "such as high employment rates, a solid GDP and a healthy economy overall."
      Source: Automotive News (Subscription Required) 
    • By William Maley
      Since the arrest of former Nissan Chairman Carlos Ghosn last month, a fair amount of dirty laundry has come to light showing the turmoil and tension between various executives and the relationship between Nissan and its alliance partner, Renault.  The arrest has also brought questions as to whether Ghosn 'jumped' or 'was pushed'. A new report from The Wall Street Journal is adding fuel to the latter.
      The paper obtained a transcript from a town hall meeting at Nissan's headquarters in Yokohama, Japan - days after Ghosn's arrest. Nissan CEO Hiroto Saikawa revealed that he disagreed with Ghosn's move to increase market share in the U.S., at the cost of investments for the Japanese market.
      “The investment in the Japanese market was very weak because there was too much power concentrated in one individual who decided that the Japanese market was less important, and we spent too much money on the U.S.,” said Saikawa.
      “He felt that there was no point investing in Japan where the population was stagnating.”
      Ghosn set a goal of achieving a 10 percent market share in the U.S. by 2017. Nissan came very close to hitting goal, reaching 9.2 percent last year. For Nissan to reach this goal, they piled on the incentives and made a push with sales to rental car companies - the latter according to industry analysts isn't as profitable, despite the higher volume. Nissan also put a lot of pressure on its dealers to move products. José Muñoz, who was Nissan's chairman in the U.S. from 2014 to this past January introduced a campaign under the slogan “Grow or Go.” Basically, if a dealer wasn't prepared to grow fast to meet the targets, Muñoz urged dealers to sell their franchise. 
      “If a dealer didn’t perform they’d threaten a dealer with termination notice,” said Alan Haig, president of Haig Partners, a brokerage firm that deals with the sales of car dealers.
      The report doesn't say how much investment was moved from Japan to the U.S. But reading between the lines and noting the relationship between the two became quite tense, we're assuming it was a large amount.
      Source: Wall Street Journal (Subscription Required)
    • By William Maley
      Since the arrest of former Nissan Chairman Carlos Ghosn last month, a fair amount of dirty laundry has come to light showing the turmoil and tension between various executives and the relationship between Nissan and its alliance partner, Renault.  The arrest has also brought questions as to whether Ghosn 'jumped' or 'was pushed'. A new report from The Wall Street Journal is adding fuel to the latter.
      The paper obtained a transcript from a town hall meeting at Nissan's headquarters in Yokohama, Japan - days after Ghosn's arrest. Nissan CEO Hiroto Saikawa revealed that he disagreed with Ghosn's move to increase market share in the U.S., at the cost of investments for the Japanese market.
      “The investment in the Japanese market was very weak because there was too much power concentrated in one individual who decided that the Japanese market was less important, and we spent too much money on the U.S.,” said Saikawa.
      “He felt that there was no point investing in Japan where the population was stagnating.”
      Ghosn set a goal of achieving a 10 percent market share in the U.S. by 2017. Nissan came very close to hitting goal, reaching 9.2 percent last year. For Nissan to reach this goal, they piled on the incentives and made a push with sales to rental car companies - the latter according to industry analysts isn't as profitable, despite the higher volume. Nissan also put a lot of pressure on its dealers to move products. José Muñoz, who was Nissan's chairman in the U.S. from 2014 to this past January introduced a campaign under the slogan “Grow or Go.” Basically, if a dealer wasn't prepared to grow fast to meet the targets, Muñoz urged dealers to sell their franchise. 
      “If a dealer didn’t perform they’d threaten a dealer with termination notice,” said Alan Haig, president of Haig Partners, a brokerage firm that deals with the sales of car dealers.
      The report doesn't say how much investment was moved from Japan to the U.S. But reading between the lines and noting the relationship between the two became quite tense, we're assuming it was a large amount.
      Source: Wall Street Journal (Subscription Required)

      View full article
    • By William Maley
      It may not seem like big news that late last month that Lexus launched the seventh-generation ES in Japan. But it becomes that when you consider that Lexus has never sold the ES outside of the U.S. and China for most of its life. Plus, Lexus has only been on sale in Japan since 2005.
      The introduction of the ES is somewhat surprising, considering sales of full-size cars are falling in the country. But Lexus believes the ES can buck that trend as there is "expanding demand for premium rides", and the vehicle being aimed at executives between their 40s or 50s. The company is also planning to ramp up marketing efforts on the sedan. One example is hour-long test drives of every Lexus model at the Lexus Meets lounge in Tokyo.
      It seems to be paying off as Automotive News reports that model has 2,000 preorders - 70 percent of those are current Lexus customers. Lexus has set a sales of 350 models per month.
      "We are still a young brand. We will offer experiences that surprise new customers through marketing and step up our exposure," said Lexus International President Yoshihiro Sawa.
      Source: Automotive News (Subscription Required)
  • Posts

    • VW showed off their production electric EV CUV. AWD with 250 mile battery pack will start at $44,890. Their RWD model is available starting Q1 2021, Q3 2021 is when the AWD model will go on sale at VW dealerships. VW says they will have about 160,000 available $7,500 tax credits when this goes on sale to help lower the price. RWD is 201HP, AWD is 302 HP, 0 to 60 in 8 seconds, will compete with the Honda CR-V and Toyota Rav4. https://www.greencarreports.com/news/1129702_2021-vw-id-4-250-mile-electric-suv-starts-at-41490   ID.4 Pro
    • Saw one of these at the dealership while the Flex was being serviced.   Vanderhall Carmel (Autocycle). It’s like an Aerial Atom had a drunken baby with a Polaris Slingshot.  
    • Yeah, I haven't been in a Dunkin or Tim's in years...I occasionally leave the house and go through the drive thru at Dunkin..   in the before time, my favorite get of the house and enjoy a breakfast place is Bruegger's Bagels...a large coffee and an everything bagel w/ bacon, egg and cheese was a favorite going back 20+ years--used to go to one in Colorado Springs, Denver, Phoenix, and now here.   When I was at MCI/Worldcom back in the late 90s, had a coworker that I used to meet up with at 6am at Brueggers once a week for breakfast..  I miss the simple pleasures of the before time.
    • There are some Timmys in small towns in North America and they seem to do well or they wouldn't be there.  Just like A&Ws would plant themselves in random small North American towns. However, for the ambiance, you can't beat a Tim Horton's location for a hot drink and a fixed up bagel or a muffin in a Canadian resort area or an urban Canadian setting, eating and drinking with the "eh" or "allo" (how Francophones say hello) crowd. I go through a lot of tea bags at home.  But, every once in a while, it's great to get your coffee or tea in one of these places and enjoy the moment.
    • One reason to go Electric! On a positive note, this is gorgeous. I brew my own at home, saves lots of money.
  • Social Stream

  • Who's Online (See full list)

  • My Clubs

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×
×
  • Create New...