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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

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) View full article

Mazda has introduced a number of key changes for the Japanese-market CX-5 for 2019. Those changes include the addition of the turbocharged 2.5L four-cylinder from the CX-9 crossover and recently refreshed Mazda6. It produces 227 horsepower (increases to 250 when Premium fuel is used) and 310 pound-feet of torque. There is also the introduction of G-Vectoring Control Plus (GVC Plus) that adds a braking function to improve traction and handling. The interior looks to get a new climate control system and new instrument cluster. Normally, we wouldn't talk about changes for models outside of the U.S. But there are some good reasons as to why we're talking about the Japanese-market CX-5. As we reported back in June, a CARB document revealed that the turbo 2.5 would be appearing in both the 2019 CX-9 and CX-5. Then last month, an internal document from Mazda Canada noted the turbo 2.5 would be an option, along with the updated G-Vectoring Control Plus system. We don't know if and when Mazda is planning to show off an updated version of the 2019 CX-5, but our money is on the LA Auto Show in November. Source: Mazda Updated Mazda CX-5 Launched in Japan Becomes the first model in Japan available with SKYACTIV-G 2.5T engine; special edition model features a premium-feeling interior HIROSHIMA, Japan—Mazda Motor Corporation has begun accepting pre-orders for the updated Mazda CX-5 at dealerships throughout Japan. The freshened crossover SUV offers a distinctive design coupled with the pleasure of Jinba-ittai driving - responsive control over driving, turning and braking – in everyday driving situations. Pre-orders have also begun for the CX-5 Exclusive Mode special edition. This range-topping special edition model combines carefully selected materials that create a look of warmth and modernity. Sales of the updated CX-5 and CX-5 Exclusive Mode special edition start on November 22. Sold in 120 different countries and accounting for a full quarter of the brand's global sales volume, the CX-5 is a core model in the Mazda lineup. Popular for its striking design, innovative SKYACTIV technologies and a pleasing performance feel that makes you want to keep on driving, the car has been acclaimed domestically and in overseas markets. The CX-5 has received more than 100 awards, including the prestigious Japan Car of the Year award, since the launch of the first-generation model in 2012.1 With this update, the SKYACTIV-G 2.5T is added to the powertrain lineup, making the CX-5 the first model in Japan available with this 2.5-liter inline-four direct-injection turbocharged gasoline engine. While the diesel delivers powerful torque and excels at long-distance cruising, the SKYACTIV-G 2.5T realizes a powerful and refined driving experience. Acceleration response is faithful from low revs, through the mid-range and up to the highest rpms, creating an interactive feel that makes drivers want to stay behind the wheel. G-Vectoring Control Plus (GVC Plus) enhances handling stability on slippery road surfaces and when changing lanes on the highway. This updated version of G-Vectoring Control now regulates vehicle motion when returning the steering wheel to center as well as when beginning a steering action. Models powered by the SKYACTIV-D 2.2 diesel engine are available for the first time with a six-speed manual transmission. The updated CX-5 diesel becomes the only model in its class2 to offer a manual option, providing SUV drivers with the pleasure of greater control over the car. As the highest-grade CX-5 available, the Exclusive Mode special edition combines a finely-crafted interior with high-quality materials such as Nappa leather and real woodgrain decorative panels to create a refined cabin space that blends warmth and modernity. Such high-quality materials and fine craftsmanship bring new joy to the experience of owning a CX-5. Moving forward, Mazda will continue to regularly update models so customers can enjoy driving pleasure and outstanding environmental and safety performance in all kinds of common driving situations. In so doing, the company aims to build a strong bond with customers and become an irreplaceable presence in their lives. Updates to the Mazda CX-5 Powertrain, handling stability and ride comfort The first model in Japan available with the SKYACTIV-G 2.5T, a 2.5-liter inline-four direct-injection gasoline turbo engine. Burning regular unleaded gasoline, it outputs up to 169 kW (230PS) at 4,250 rpms and produces up to 420 N･m (42.8kgf･m) of torque at 2,000 rpms. GVC Plus, a new technology that improves handling stability at high speeds and during emergency maneuvers while suppressing sudden, unintended movements to enhance passengers' peace of mind, comes as standard equipment on all model grades. The SKYACTIV-MT six-speed manual transmission is now available with the SKYACTIV-D 2.2 diesel engine in both FWD and AWD configurations. Advances in safety and convenience Nighttime pedestrian detection is added to Advanced Smart City Braking Support (Advanced SCBS). A 360° View Monitor is standard equipment on the Exclusive Mode special edition and is available as a factory-installed option for all model grades. Mazda Connect car-connectivity system supports Apple CarPlay5 for the first time on a Mazda model in Japan. Mazda Connect car-connectivity system supports Android Auto ™6 for the first time on a Mazda model in Japan. Improvements in design and quality The 17-inch aluminum wheels are painted Gray Metallic instead of Dark Silver. (The design is unchanged.) The climate control panel, switches and dials are redesigned for better feel and operability. For models with normal speakers, the surface material of the A-pillar trim has been changed from resin to fabric. In addition, tweeters have been added at the base of the A-pillar, increasing the number of speakers from four to six. Exclusive Mode special edition (with SKYACTIV-G 2.5T or SKYACTIV-D 2.2) The Exclusive Mode special edition offers Mazda's highest-grade interior, using specially selected materials such as Nappa leather upholstery and real woodgrain trim to create a premium cabin space with the feel of a higher-class vehicle. In addition, features and functions that improve comfort and safety enhance the joy of ownership. Seats are upholstered in soft, smooth Nappa leather and the exclusive interior color coordination uses black on the pillars and ceiling and Deep Red in the lower areas. Real woodgrain is used in decorative trim panels for a look of refinement and warmth. The frameless rear-view mirror provides a wider field of vision and a cleaner look. 19-inch aluminum wheels with exclusive dark gloss paint accentuate a look of composure and toughness. Both front seats feature a ventilation system that extracts hot air trapped between the occupant and the seat surface. The seven-inch TFT LCD display mounted in the center of the meter cluster shows essential driving information in a well-organized and easy-to-read manner. White LEDs are used throughout the cabin for consistent interior lighting, and foot lamps come as standard equipment for both front and rear seats. View full article

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) View full article

Nissan finds itself in trouble once again as it admitted today that it had improperly measured exhaust emissions and fuel economy for 19 models sold in Japan. According to Reuters, Nissan found that test environments for emissions and fuel economy at final inspection stations didn't meet up to standards. Nissan also found that inspection reports were be based on altered measurements. The automaker was quick to point out this misconduct doesn't affect models exported to other markets "as it applies to requirements intended specifically for the Japanese market." “This is a deep and serious issue for our company,” Nissan Chief Operating Officer Yasuhiro Yamauchi told reporters at a briefing today. "We realize that our compliance awareness remains lacking." Nissan will be carrying out an investigation to determine the cause, which it expects to take a month or longer. This comes a few months after Nissan revealed that it had uncertified inspectors signing off on final inspection of JDM models for decades. It prompted a recall of 1.2 million vehicles and suspending production for two weeks. Source: Reuters View full article

October has not been the best of months for Nissan. Earlier this month, Japan’s transport ministry revealed that at five of the company's six plants in the country had quality checks being certified by unauthorized workers. According to Reuters, vehicles destined for the domestic market have to go under a final check by certified technicians. “It’s extremely regrettable, causing anxiety for users and shaking the foundation of the certification system,” said Minister of Land, Infrastructure, Transport and Tourism Keiichi Ishii at a press conference earlier this month. Nissan announced that it would be recalling 1.2 million vehicles built within the past three years due to this issue. The news has only gotten worse as the Japanese automaker announced today that it would be suspending production at all of their Japan plants for at least two weeks to investigate and address this issue. Nissan CEO Hiroto Saikawa revealed at a briefing that this unauthorized approval continued a month after Nissan was told about this issue and said it strengthened the control of its inspection processes. “Our emergency measures were not enough. We were unable to change our bad habits,” said Saikawa There are numerous factors as to how this debacle developed including increasing the efficiency of the inspection process and plants transferring the checks to other lines. Nissan is planning on recalling an additional 34,000 vehicles for re-inspection. Production of export vehicles will continue as this issue is specific to Japanese-market models. Source: Reuters, 2, Bloomberg, Nissan Press Release is on Page 2 Regarding recurrence of final vehicle inspection issue at Nissan’s vehicle plants in Japan YOKOHAMA, Japan – As previously announced, on September 18 the Japanese Ministry of Land, Infrastructure and Transportation (MLIT) notified Nissan that in the final vehicle inspection process, certain checks were carried out by technicians not properly registered to perform those duties under Nissan’s own processes. Nissan took corrective measures at Japanese production plants by September 20 to address the issue. By October 18, the investigation team (led by a third party) discovered that at its Oppama, Tochigi and the Nissan Kyushu plants, certain parts of the final inspection process were still being carried out by technicians not properly registered to perform those duties for vehicles for the Japan market. Nissan decided today to suspend vehicle production for the Japan market at all Nissan and Nissan Shatai plants in Japan. Nissan regrets any inconvenience and concern this has caused to its valued customers and other stakeholders in Japan. Findings The plants transferred final vehicle inspection check items from the final vehicle inspection line to other lines, such as the “marketability inspection” and the “offline inspection”. As a result, employees who were not internally registered as final vehicle inspectors performed final vehicle inspections. Measures planned Nissan will take the following actions with regard to the production line and vehicles that did not meet Japanese market requirements for final inspection: Production line in the plants The final vehicle inspection line will be configured as originally submitted to MLIT, consolidating all final inspection processes. Final inspection process will be separated from other processes and only internally registered final vehicle inspectors will have access to the final inspection line. Unregistered and registered vehicles Nissan is considering re-inspecting the unregistered vehicles at certified Nissan dealership facilities throughout Japan. Nissan is considering submitting a noncompliance recall report for registered vehicles. Approximately 34,000 vehicles produced between September 20 – October 18, 2017 including those produced for other makers will be subject to re-inspection. Nissan regards the recurrence of this issue at domestic plants — despite the corrective measures taken — as critical. The investigation team will continue to thoroughly investigate the issue and determine measures to prevent recurrence. Details of the above will be included in the final report to be published on a later date. View full article

Japan is a notorious market for American automakers to make a dent in. Ford called it quits last year, while GM sells a meager number of models; Cadillac sold 327 and Chevrolet moved 373 models last year. Critics say "nontariff barriers" are the key reason as to why Detroit hasn't been able to make any headway. Talk with people in Japan and it is a different story, there is still a perception of American models having poor quality and having to fork out a fair amount of cash to keep them maintained. But there is an exception. Jeep has been able to carve out a nice niche in Japan's marketplace. The brand is consistently in the top 10 of foreign automakers and sales have been climbing. 2017 is on track to be the eighth consecutive year of sales growth in the country. Through August, Jeep moved 6,344 models. But getting to this point took a lot of work and money. "We have to spend money and engineering hours to do it, but we think it's worth it," said FCA Japan CEO Pontus Haggstrom to Automotive News. "They are things that make our jobs harder and make it more expensive and time consuming to bring cars to Japan. But are they trade barriers? My honest opinion is, no. Are they excuses for why I can't sell or succeed in Japan? No." Jeep has been making efforts to make their models more appealing to Japanese customers. Tweaking drivetrains to qualify for Japan's eco-car incentives Offering right-hand drive models Equipping models with folding side mirrors and factory-installed Japanese navigation systems. Doubling their marketing budget since 2010 Refurbishing or redesigning more than 50 showrooms by 2018 The last one is important as previous Jeep dealers in the country were basically what you find in dealers in the U.S. "It's more about the brand and less about the origin," says Haggstrom. Jeep also has an ace up its sleeve that many automakers wished they had, brand equity. "The image of American cars as low-quality still persists here, even though a bit underserved. But Jeep has the most brand equity of any American brand. Japan shows it has a global following," said Christopher Richter, an auto analyst with CLSA Asia-Pacific Markets in Tokyo. Source: Automotive News (Subscription Required) View full article

G. David Felt - Staff Writer Alternative Energy - www.cheersandgears.com Honda Consolidating Assembly plants in Japan It would seem Evolving is the new Honda buzz word as Honda releases a News Release this morning stating that they will be evolving their automobile production systems in Japan by merging their Saitama assembly line into the Yorii plant consolidating respective production strengths. This evolution will allow them to prepare and better guide the company as they plan and prep for the evolving electrification and intelligence technologies that will become standard in the auto industry. This will allow them to use the Yorii plant as a test bed for global production and best practice of assembly of new auto technologies and platforms. With this Honda can evolve into a global standard production platform for the future that covers ICE, EV and Hybrid auto's. Honda Press Release

We'll thought it was time for us to have a fun thread of posting stuff we find from Japan. Crazy the auto modifications that are allowed in Japan for street legal driving.

Visit any auto show and you're bound to see a futuristic concept with out any sideview or rearview mirrors. Instead, you'll find cameras that do the same function. This technology will soon be appearing on production vehicles in Japan. Japan's transport ministry has approved the use of cameras and video screens to take the place of mirrors on production vehicles. This comes after a decision made in November by the United Nations World Forum for Harmonization of Vehicle Regulations allowing automakers to replace rear and sideview mirrors with cameras. Proponents of camera systems say it provides a wider field of vision and makes a vehicle more aerodynamic. But switching to a camera does have some pitfalls. One is a mirror is a simple thing and can be fixed quite easily. The same cannot be said for a camera system. Also as Automotive News points out that while a camera system eliminates blind spots due to rear pillars, some drivers rely on those pillars to gauge where an object is. For now, the transport ministry is requiring automakers to place cameras and screens in the same place as mirrors to help a driver get used to this technology. “Getting used to (monitors instead of mirrors) is the main factor to ensure drivers’ safety,” said transport ministry official Masaru Miya$h!a. It is expected that other countries will follow suit in the coming years. Source: Automotive News (Subscription Required), Japan Times View full article

If there is one thing we have learned with previous scandals in the automotive, it is that it will get worse before becoming better. Such is the case with Mitsubishi and their fuel economy scandal. According to Reuters, various Japanese outlets are reporting that the inflated fuel economy numbers extend much further than the four models originally announced. The Asahi newspaper says the Japanese automaker falsified fuel economy figures on three additional models, while the Yomiuri newspaper says there are more than ten models with inflated fuel economy numbers. It should be noted these vehicles aren't on sale anymore. When reached for comment, Mitsubishi declined, saying that its investigation is ongoing. Source: Reuters View full article

It seems a bit odd that Cadillac is doing a special edition model for Japan as they don't sell that many vehicles there. But trying to figure out why just seems like an exercise in futility. Let's just talk about the special edition vehicle in question. This is the Cadillac ATS Luxury Sport Edition which features a set of 19-inch V-spoke alloy wheels with a two-tone look. There is also a set of Brembo brakes and a sports suspension that comes as part of this special edition model. Other items of note include cashmere accents for the interior, and the choice of either crystal white or sable black paint. A turbocharged 2.0L four-cylinder with 272 horsepower and eight-speed automatic is your only powertrain choice. It is unknown how many of the ATS Luxury Sport Edition models will be built. We do know that it will cost ¥5,290,000 (about $49,911). Source: Motor1.com View full article

Ford will be pulling out of the Indonesian and Japanese markets as they cannot make any headway in terms of market share. Reuters got their hands on an email from Ford's Asia Pacific President Dave Schoch who told employees today that the company would exit all areas of the car business, including dealerships and the importing of Ford and Lincoln vehicles. "Unfortunately, this also means that our team members based in Japan and Indonesia will no longer work for Ford Japan or Ford Indonesia following the closures," Schoch said in the email. Ford began selling vehicles in Japan in 1974 and has 52 dealers in the country. Sales last year totaled around 5,000 vehicles, making up 1.5 percent of the import new car market. Ford has had a tough go in Japan as many buyers tend to go with the domestic brands. Not helping is the combination of a population getting older and younger people foregoing cars. Ford Indonesia was set up in 2002 and has a network of 44 dealers. Last year, the blue oval sold about 6,000 vehicles, making up a poor 0.6 percent of the market. Intense competition from Japanese automakers, a market struggling due to a slowdown, and the expense of importing vehicles to the country spelled doom for the automaker. "In Indonesia, without local manufacturing ... there's just really no way that automakers can compete in that market, and we do not have local manufacturing," said a Ford spokeswoman in Japan. Source: Reuters View full article

The video at the bottom of this story about the Honda Jet to go into productions in 2016 is a rough assessment about Honda and their product lines. Honda only earned 2.6% profit last year on their product lines especially their autos. It is worth watching as he really rips Honda. http://www.msn.com/en-us/money/companies/faa-approval-near-hondas-business-jet-is-about-to-hit-the-market/ar-AAgaIFl