Friday May 25, 2012

JAPAN NEWS AND DISCUSSION

Toyota invests $90 million to expand Russia factory

Business Feb. 05, 2012 - 07:05AM JST ( 7 )

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7 Comments

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The Munya TimesFeb. 05, 2012 - 12:01PM JST

Competing with Nissan in another country? Japan doesn't even have a peace treaty with Russia. Money talks. As far as I know the Russians they won't sue Toyota for a few fatal accidents caused by defective materials, little things like floor carpet blocks the brake pedal etc. Paradise for defective cars.
1

ExportExpertFeb. 05, 2012 - 02:07PM JST

No such defects munya times.

But fairly soon no cars will be produced in Japan, seems car production is getting shifted more and more overseas. Hollowing out of the manufacturing base continues, mean while japan govt just gazes blankly into the darkness.
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The Munya TimesFeb. 05, 2012 - 03:04PM JST

@ExportExpert

There were many Toyota recalls. Have you ever heard about or can you imagine recalls in Russia?

For your other point, I absolutely agree. Outsourcing and the using of poor quality China made parts is going wild in the auto industry. I can imagine that it will affect Japan controversially and might cause damage and turmoil in both, the political and the economic life. Can't see the future what exactly will happen and how the problems will be solved. Just a worry in general.

Some times ago I sarcastically wrote that there might be car production in Japan again, supposing they can provide labor forces cheap enough for China to outsource their production to Japan.
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shinhiyataFeb. 05, 2012 - 07:33PM JST

Toyota had to stop construction on this factory in 2009 after sales from its other Russian facility failed to reach expected levels. This so-called expansion is only bringing up the production capacity to the initially envisaged totals. Previous investment amounts per units produced are about $20000USD a car !!! All of the vehicles made at Nissan's brand new St. Petersburg facility - which took 4 years to construct - had to be recalled for brake failure in 2010. Nissan Europe is mostly owned by Renault which has had to cut over 20000 jobs since 2007. The "Mitsubishi" plant in Kaluga is 70% owned by Peugeot and only 15% of the vehicles produced there are branded as Mitsus. And while Mazda has received permission from the Russian government to build a plant, they have not even decided on a location or if the factory will be operated in tandem with another company. All this while the governments of these 2 countries are still technically at war without any legal peace treaty. I could go on and on, which is something the author should have done instead. The article fails to point out that success for Japanese automobile production in Russia remains elusive.
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Wanda-kunFeb. 06, 2012 - 01:40AM JST

The Russian economy is about as strong as it's ever going to get. This is probably good money after bad.
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YuriOtaniFeb. 06, 2012 - 07:46AM JST

baka
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Bebert61Feb. 06, 2012 - 09:35AM JST

The Russian economy is about as strong as it's ever going to get.

Really? Germany is closing down its nuclear plants, Britain is neglecting her energy infrastructure, the alternative energy solutions are proving to be a failure. In light of this, demand for Russia's oils an natural gas is only going to grow. Add to that, Russia is building a pipeline to insatiable China. Plus, Russia's national debt is the lowest in the developed world. Seems to me that Russia has a pretty bright future (and pretty bright leadership, too).