Japan plants humming during export surge

[Biker16]

Japan plants humming during export surge

 

James B. Treece | Automotive News |

May 14, 2007 - 1:00 am

 

 

 

 

TOKYO -- Japanese carmakers are adding capacity at home even though sales in Japan are at nearly 30-year lows. Why?

 

Exports, exports, exports.

 

In March, Japan's vehicle shipments rose 8.1 percent compared with the same month last year, the 20th straight month of rising exports. Exports to North America have been even more consistent, rising in March for the 26th straight month.

 

Japan's first-quarter exports were up 11.6 percent to 1,578,534.

 

Over half

 

Exports have climbed to a level relative to production that the industry hasn't seen in almost 20 years. In the fiscal year that ended March 31, automotive exports accounted for 53.3 percent of all Japanese vehicle output. It was the first time that figure has topped 50 percent since the fiscal year that ended March 31, 1988.

 

About 35 percent of Japan's exports in the January-March period went to the United States. U.S.-bound exports rose 8.8 percent to 556,478.

 

That rise was fairly modest compared with shipments to other markets.

 

Exports to Europe jumped 15.5 percent to 391,627. The largest gains came in shipments to Russia, Ukraine and other eastern European nations.

 

Exports to Russia in the quarter were almost equal in units to shipments to Germany and Britain combined.

 

In contrast, exports to the European Union rose just 3.5 percent to 254,862.

 

Exports to Canada, Africa, Central America, the Mideast and South America also rose at a double-digit clip.

 

Carmakers are increasingly reliant on exports to keep their factories in Japan busy.

 

At Honda Motor Co., first-quarter sales in Japan slipped 5.8 percent. But Honda still cranked up production 4.6 percent to meet an 11.1 percent rise in exports.

 

At Mitsubishi Motors Corp., it was even more obvious that exports keep Japanese carmakers moving. Mitsubishi's Japan sales dropped 18.5 percent in the quarter. But the company pumped up output by 8.3 percent to feed a 35.3 percent surge in exports.

 

In the first quarter, sales of Toyota- and Lexus-brand cars and trucks fell 9.3 percent in Japan. But an 11.8 percent rise in exports meant Toyota had to downshift production in Japan by only 0.8 percent.

 

Exception: Nissan

 

Nissan Motor Co. was the exception. Its exports fell 16.7 percent in the quarter. Combined with a 10.0 percent drop in Japan sales, that forced Nissan to cut production in Japan by 12.0 percent. In April, Nissan also said it is dropping two Japan plants to single shifts.

 

But that is quite contrary to the trend. Honda, Toyota and Toyota unit Daihatsu Motor Co. are adding capacity in Japan. Last year Mitsubishi announced it would keep open a plant previously scheduled to close, largely because of export demand.

 

Suzuki Motor Corp.'s exports hit a record for the month in March and posted a fiscal-year record in the 12 months that ended March 31.

 

You may e-mail James B. Treece at jtreece@crain.com

[Biker16]

notice a pattern we are importing , not exporting.

 

 

this is due to the Fact that US cars have very little global relavence. Ford is in no position to expoert any N.A. vehcle any where else in the world because we don't make car any market wants.

 

this is the reasoning behind "one Ford" the final stage of this phliosphy is to control production as a global company not as a collection of regoinal companies. better able to handle regional surges in demand, as one global company.

[goinbroke2]

How about jap cars were laughable for quality and fit/finish in the 60's, 70's so they changed and focused on quality. Then the anti-import of the 80-90's made them "assemble" here and get the "made in usa" and "american company" mindset in consumer's view. Now they are considered "quality", "economical", and "american" and the jap companies can go back to building and importing.

 

I guess WW2 was the battle, we won it, but the war is still looming and guess who is leading?

Lost our tool and die, electronics, appliances, textiles, etc. One by one they are picking off our industries and nobody is noticing.

I guess the auto industry is being marginalized next until it is gone. The whole time, Americans who wave the flag and beat their chest saying how patriotic they are are gushing over the loss of local hero's.

 

Pathetic

[TStag]

notice a pattern we are importing , not exporting.

this is due to the Fact that US cars have very little global relavence. Ford is in no position to expoert any N.A. vehcle any where else in the world because we don't make car any market wants.

 

this is the reasoning behind "one Ford" the final stage of this phliosphy is to control production as a global company not as a collection of regoinal companies. better able to handle regional surges in demand, as one global company.

 

I totally agree. Ford have launched some new Lincolns, and invested heavily in new boy panel pressings. This investment is expected to be paid for almost totally by the US market. It is utterly pathetic! The general shape of the MKS would sell abroad maybe with some changes tot the grill. The sensible thing to do would be to make Lincolns for Export and ship some over to Europe. Best of all Ford even own a European badge and dealer network to sell them through. Namely Rover and Land Rover. No wonder Ford are a world class loss maker.

[RichardJensen]

this is due to the Fact that US cars have very little global relavence.

Your anti-jingoism is as irresponsible as the jingoism present at various Ford units in the past.

 

If it truly doesn't matter where a vehicle is engineered, why are you at such pains to point up the 'irrelevance' of cars designed in the U.S. for the U.S. market?

 

Oh, and while you're at it, perhaps you can explain why Toyota has been engineering minivans, SUVs, trucks, and yes, the CAMRY in the U.S.?

[Biker16]

Your anti-jingoism is as irresponsible as the jingoism present at various Ford units in the past.

 

If it truly doesn't matter where a vehicle is engineered, why are you at such pains to point up the 'irrelevance' of cars designed in the U.S. for the U.S. market?

 

Oh, and while you're at it, perhaps you can explain why Toyota has been engineering minivans, SUVs, trucks, and yes, the CAMRY in the U.S.?

Toyota does not do a lot of engineering in the US. they always send it home, because that is where thier engineering heart is. they make it appear like they can do it al here but they can't they don't have the resourses or the need to do it all here.

 

http://www.blueovalforums.com/forums/index...showtopic=13247

 

 

10% by 2013.

 

"DETROIT -- By 2013, vehicle development for more than 90 percent of new cars and trucks will take place outside the United States, according to the automotive research firm CSM Worldwide Inc."

 

 

If you know your customer, it does not matter who where the car is designed engineered or built.

Edited May 15, 2007 by Biker16

[grbeck]

Your anti-jingoism is as irresponsible as the jingoism present at various Ford units in the past.

 

If it truly doesn't matter where a vehicle is engineered, why are you at such pains to point up the 'irrelevance' of cars designed in the U.S. for the U.S. market?

 

Richard, he is saying that we cannot export U.S.-made Fords, because the rest of the world does not want them, which hurts Ford in the long run (as it has to amortize tooling costs over a smaller production run).

 

The simple truth is that most other major auto markets would not accept the fit-and-finish, performance and handling of most U.S-built Fords. They aren't good enough. Why did Europe get the new-generation Focus, while Ford kept building the old one here? Because Europeans would have lost interest in the car if it remained unchanged for as long as the North American version has been retained. The market is too competitive, and buyers are demanding.

 

An increasing number of American buyers are becoming more demanding, too, but Ford and GM have ignored that for as long as possible, and seem content to either compete hardest in their traditional strongholds (pickups and big SUVs) or appeal to buyers who are motivated more by rebates and "deals" than anything else.

 

Fit-and-finish is another area where the North American offerings of Ford and GM fall down compared to cars in Japan and Europe. The European Fords (and Opels/Vauxhalls) have a much higher level of fit-and-finish compared to North American Fords and GMs. And it isn't just because European price points are higher for similarly sized vehicles. I examined a brand-new Opel Astra in Germany two years ago...it was better built and more nicely finished than virtually every CADILLAC (except for the XLR) sold in the U.S.

Edited May 15, 2007 by grbeck

[RichardJensen]

Richard, he is saying that we cannot export U.S.-made Fords, because the rest of the world does not want them,

Well, there is a pretty small market for EU vehicles here in the U.S., and it's practically non-existent at the entry level. Japan made inroads when they figured out how to build cars that appealed to typical U.S. buyers.

 

The only reason why EU vehicles have an export market is because their high gas prices and displacement taxes have created an artificial economic environment similar to the economies found in emerging markets.

 

In point of fact there are few similarities between the EU and US markets, and further, with both markets being roughly the same size (c. 17-18M units), there is no need to design 'one size fits all' solutions for the entry level customers which form the meat of the market in both regions.

[Biker16]

Well, there is a pretty small market for EU vehicles here in the U.S., and it's practically non-existent at the entry level. Japan made inroads when they figured out how to build cars that appealed to typical U.S. buyers.

 

The only reason why EU vehicles have an export market is because their high gas prices and displacement taxes have created an artificial economic environment similar to the economies found in emerging markets.

 

In point of fact there are few similarities between the EU and US markets, and further, with both markets being roughly the same size (c. 17-18M units), there is no need to design 'one size fits all' solutions for the entry level customers which form the meat of the market in both regions.

you miss the point.

 

 

WE HAVE NOT BEEN SUCCESSFUL SELL CARS IN THE US AS WE HAVE BEEN IN EUROPE.

 

We no longer have the reources to continue to do business as we have been doing. We can't afford to develop Us only cars, that was what we were doing wrong. we have been firemen putting out fires, neglecting some products while fixing other products. We neglected the focus because we needed to fix Ford midsie rs 1st, so and so forth. we have not had the resources to do what you want for a very long time. launch and leave.

 

 

FoE has a sustainble development program for it's models, they are consistantly refreshing their products, and growing market share and profits.

 

I think that if we can share resources, we can gain the synergies needed move the company forward. It not simply making European cars for america but also higher profit American cars for europe. mustang, RWD sedan, Bronoco... to sell in europe with European powerpacks. taking advantage of a favorable Dollar vs euro, and excess capasity in NA.

[NickF1011]

you miss the point.

 

 

WE HAVE NOT BEEN SUCCESSFUL SELL CARS IN THE US AS WE HAVE BEEN IN EUROPE.

 

We no longer have the reources to continue to do business as we have been doing. We can't afford to develop Us only cars, that was what we were doing wrong. we have been firemen putting out fires, neglecting some products while fixing other products. We neglected the focus because we needed to fix Ford midsie rs 1st, so and so forth. we have not had the resources to do what you want for a very long time. launch and leave.

 

 

FoE has a sustainble development program for it's models, they are consistantly refreshing their products, and growing market share and profits.

 

I think that if we can share resources, we can gain the synergies needed move the company forward. It not simply making European cars for america but also higher profit American cars for europe. mustang, RWD sedan, Bronoco... to sell in europe with European powerpacks. taking advantage of a favorable Dollar vs euro, and excess capasity in NA.

 

Oh no. He said 'synergies'.

[Ford Jellymoulds]

Japan plants humming during export surge

 

James B. Treece | Automotive News |

May 14, 2007 - 1:00 am

 

 

 

 

TOKYO -- Japanese carmakers are adding capacity at home even though sales in Japan are at nearly 30-year lows. Why?

 

Exports, exports, exports.

 

In March, Japan's vehicle shipments rose 8.1 percent compared with the same month last year, the 20th straight month of rising exports. Exports to North America have been even more consistent, rising in March for the 26th straight month.

 

Japan's first-quarter exports were up 11.6 percent to 1,578,534.

 

Over half

 

Exports have climbed to a level relative to production that the industry hasn't seen in almost 20 years. In the fiscal year that ended March 31, automotive exports accounted for 53.3 percent of all Japanese vehicle output. It was the first time that figure has topped 50 percent since the fiscal year that ended March 31, 1988.

 

About 35 percent of Japan's exports in the January-March period went to the United States. U.S.-bound exports rose 8.8 percent to 556,478.

 

That rise was fairly modest compared with shipments to other markets.

 

Exports to Europe jumped 15.5 percent to 391,627. The largest gains came in shipments to Russia, Ukraine and other eastern European nations.

 

Exports to Russia in the quarter were almost equal in units to shipments to Germany and Britain combined.

 

In contrast, exports to the European Union rose just 3.5 percent to 254,862.

 

Exports to Canada, Africa, Central America, the Mideast and South America also rose at a double-digit clip.

 

Carmakers are increasingly reliant on exports to keep their factories in Japan busy.

 

At Honda Motor Co., first-quarter sales in Japan slipped 5.8 percent. But Honda still cranked up production 4.6 percent to meet an 11.1 percent rise in exports.

 

At Mitsubishi Motors Corp., it was even more obvious that exports keep Japanese carmakers moving. Mitsubishi's Japan sales dropped 18.5 percent in the quarter. But the company pumped up output by 8.3 percent to feed a 35.3 percent surge in exports.

 

In the first quarter, sales of Toyota- and Lexus-brand cars and trucks fell 9.3 percent in Japan. But an 11.8 percent rise in exports meant Toyota had to downshift production in Japan by only 0.8 percent.

 

Exception: Nissan

 

Nissan Motor Co. was the exception. Its exports fell 16.7 percent in the quarter. Combined with a 10.0 percent drop in Japan sales, that forced Nissan to cut production in Japan by 12.0 percent. In April, Nissan also said it is dropping two Japan plants to single shifts.

 

But that is quite contrary to the trend. Honda, Toyota and Toyota unit Daihatsu Motor Co. are adding capacity in Japan. Last year Mitsubishi announced it would keep open a plant previously scheduled to close, largely because of export demand.

 

Suzuki Motor Corp.'s exports hit a record for the month in March and posted a fiscal-year record in the 12 months that ended March 31.

 

You may e-mail James B. Treece at jtreece@crain.com

 

Yes it going the same way as the motor cycle industry went, buying cheap Jap Crap Motor cycles.

 

[RichardJensen]

WE HAVE NOT BEEN SUCCESSFUL SELL CARS IN THE US AS WE HAVE BEEN IN EUROPE.

Oh yeah?

 

What planet are you from? Some planet where Ford DIDN'T spend the first 40 years after WWII as the BIGGEST mfr in Europe?

 

Ford's marketshare in the US will probably stabilize at half of its post WWII peak, in the EU it's currently sitting at less than half.

 

Ford EU has been a series of trainwrecks for about as long as Ford NA has been one trainwreck after another. Latching onto a revival that is all of three years old is stupid stupid stupid. Ford EU ain't out of the woods yet, and it will go as hard for Ford EU as it will for Ford NA if they don't get their similar products on common powertrains, PCMs, and architectures..

 

Ford can no longer engineer EU exclusive vehicles either.

[Biker16]

Oh yeah?

 

What planet are you from? Some planet where Ford DIDN'T spend the first 40 years after WWII as the BIGGEST mfr in Europe?

 

Ford's marketshare in the US will probably stabilize at half of its post WWII peak, in the EU it's currently sitting at less than half.

 

Ford EU has been a series of trainwrecks for about as long as Ford NA has been one trainwreck after another. Latching onto a revival that is all of three years old is stupid stupid stupid. Ford EU ain't out of the woods yet, and it will go as hard for Ford EU as it will for Ford NA if they don't get their similar products on common powertrains, PCMs, and architectures..

 

Ford can no longer engineer EU exclusive vehicles either.

I agree.