Japan's auto industry a shadow of its former self
As a part-time automotive journalist working for a variety of car-related websites, I went to the Canadian International Auto Show recently to check out the latest and greatest in Japanese automobiles.
As one of Japan’s key exports, the automotive industry remains vital to the country’s economic health. Naturally, the most
competitive products tend to yield the greatest market share in their segment, in turn translating into greater incoming revenue for the country from which the manufacturer is based. The best products usually yield the best possible results.
I secretly held my own biases. I wanted Japan to have a good showing. I wanted Japan to show the world that after years of complacency in design and engineering, that “Japan Motor Company” was finally back. I wanted Japan to make the best of the best, and to be the best of the best. I wanted Japan Motor Company to win.
It didn’t happen. The three finalists for the Canadian Car of the Year were all from South Korea. New models from Subaru, Honda, Mazda and Nissan all felt cheap and flimsy, made extensively from hard plastic that resembled the material used to fabricate tupperware containers. None of them offered a real price advantage over their competitors. None of them were particularly visually compelling. Nobody even bothered to visit the Suzuki or Mitsubishi booths.
Many go back to the old impression of Japanese reliability. A study done by JD Power & Associates, however, recently revealed that of all Japanese manufacturers, only Toyota (alongside its luxury division Lexus & youth-oriented division Scion) and Honda/Acura made the cut in dependability. Subaru, Nissan, Mitsubishi, Infiniti, Mazda and Suzuki ALL failed in falling below the industry average. How’s that for a bummer?
Ugly, uncompetitively priced, uncompetitively trimmed and unreliable. Why would anyone want to buy a Japanese car?
While it takes auto consumers a while to change their impressions of a company (it took more than 20 years of bad American products for Americans to consider anything outside an American car), the once-flawless reputation of Japan Motor Company is slowly being dismantled by great products from competitors and its own inability to produce a class leader. Customers are showing it with their wallets.
Never mind the fact that European car sales are down. But through a combination of design and quality, Hyundai and Kia sales were up almost 31% and 18% respectively there last month. Sales from GM and Ford rose a substantial 11% in January. Japanese
companies? Toyota’s up 7.5% compared to last year, but much of the increase can be attributed to increases in fleet car purchases rather than consumer interest. Weak growth in sales numbers forced the ratings agency Morningstar to lower the credit ratings of both Honda and Toyota. Suzuki sales worldwide are down and net profit is also down by nearly five percent.
Without a doubt, the yen and the natural disasters in Japan and Thailand played major roles in limiting the production capacity of Japanese automakers, and capped profitability, revenue, sales figures and the like. What it doesn’t determine, however, is quality. The Hyundai Genesis, a midsize premium sedan, has won over 20 accolades since 2009. The Hyundai Elantra has won 14 since it was launched a year ago. No Lexus or Toyota in the same segments have ever been as well liked by journalists as either of the aforementioned since the 1989 Lexus LS400.
Japanese cars aren’t winning any style awards, nor do they offer content that justifies any premium they might and do have over their American or Korean equivalents. Japan Motor Company’s legendary reliability has become a shadow of its former self. At one point or another, loyalists will realize that they’re paying more for less in buying a Japanese car. And when they decide to migrate, there’s no stopping the folding of Japan Motor Company at a time when a product’s competitiveness has become a major deciding factor in a corporation’s survival.
Author Infomation
- Peter Dyloco
- My name is Peter Dyloco. I hope to bring a fresh perspective to the issues that face Japan. I enjoy learning new languages and study them during my spare time. I’m able to speak English, Japanese, Taiwanese Hokkien, Mandarin, Cantonese, Tagalog and French to various levels of proficiency. I was born and raised in Hong Kong.
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32 Comments
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Scrote
A friend of mine works at the Nissan technical centre in the UK. He said that when Renault took over they were amazed at how over engineered Nissan cars were. Since then I imagine money has been saved in that area, i.e. the use of cheaper, less reliable components, which is reflected in the latest cars.
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NetNinja
Mr. Peter Dyloco,
Not sure if you read my last post about your previous article. You would be mistaken if I'm not fair in my criticism.
My post today is in praise of Japanese cars. Japan will return to it's former glory however with a few changes.
I have just bought a new car. Buying a car for me, I'll speak for myself, requires at at least 2 to 3 months of good research if you want to find the best. This is the best time to buy as well.
My research started at the Tokyo Motor Show at Tokyo Big Sight. Then it continued over the Internet. I did more research at the Tokyo Auto Salon at Makuhari Messe this year. I've been to numerous dealerships and even Odaiba's Toyota MegaWeb where you can test drive their cars.
My goal was to buy a sports compact which is the bread and butter for most Japanese automakers. Domestically and internationally, compact cars that offer good mileage and reasonable power are in demand.
I decided to downsize in light of recent events and the current state of the economy. With rising taxes looming and the price of oil about to sky rocket if there's a war with Iran (Japan affected the most) I decided to invest in a Japanese car.
OMG!!! NetNinja bought a Japanese car? Yes, I did. I'm an American but first and foremost I'm a survivor.
Now hopefully Peter what I discovered or just my opinion might give you some more insight. I compared 4 cars in the same class:
Toyota Vitz G's version
Mazda Demio
Suzuki Swift Sport
Nissan March
I will eliminate 2 right now. Mazda Demio and Nissan March. Neither will do well outside Japan cause of their steering wheel placement and lack of power.
That leaves Toyota's Vitz G's vs Suzuki Swift Sport.
Toyota has been Japan's leader in the auto industry for ages. Automatically you expect a great car from them. The Toyota Aqua is a very good car. Toyota Vitz G's is also awesome. Toyota fails at the bottom line. Features that should be standard are OPTIONS. These options make the car ridiculously expensive.
I was surprised that Toyota uses such cheap material in it's Toyota Vitz. Toyota scores very low for interior design. The worst part is that they offered less and charged more. Toyota Vitz comes with a 1.4 liter engine on 16 inch wheels.
Suzuki Swift Sport offers a 1.6 liter engine with better quality materials and 17 inch wheels. Swift Sport is beautiful not only outside but inside as well. The interior offers ample space for tall people and even cruise control which is not common on Japanese vehicles under 2.5 liter engines. Everything is flush and well manicured compared to the Toyota. They even come with ISOfix clamps for child seats. Suzuki has clearly done it's homework and offer a more refined car. Even the showroom is cleaner. I never saw the mechanics of the dealership.
So what's the difference? Toyota, 2.7 million with a few options. Suzuki, 2.2 million with a boat load of creature comforts on their flagship car. Suzuki Swift Sport is a hell of a car BTW. I can understand why they win rally races.
Mr. Dyloco I was surprised, very much, that Toyota and Nissan are not showing their pride in car manufacturing these days. However, at no point in your article did you mention Suzuki. Suzuki has a high sense of pride when it comes to designing their vehicles. After doing more research, I found that in Europe, India, Australia and other parts of the world the Suzuki Swift Sport is EXTREMELY popular.
Needless to say, I didn't purchase the Toyota.
Japanese cars will always be popular. I dare say that Suzuki, if they keep making cars like they are now, will be a major player and will contribute to the positive image of Japanese car design and manufacturing. At this moment they are struggling to enter the hybrid market (Volkswagen, hmmm) however when they do Toyota and Nissan will have a hard time contending with them. Mixing European sensibility and style with diligent Japanese engineering is a deadly combination. That's what Suzuki is doing.
I hope my post gives you a sense of optimism. I'm a very hard sell when it comes to cars. Months of research.
-3
Ranger_Miffy2
NetNinja...thanks for the informative post!
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PeaceWarrior
NetNinja, sorry mate but I have no idea what you are talking about in the case of the Vitz. There is not a single VItz on the market that's above 2 million Yen in Japan. The most expensive would be the RS, a really nice little sporty car and that's with a 1.5 liter engine and the price is about 1.8 million Yen.
I agree that the Swift sport is a great car, especially for tall people like me, but to say that a VItz is 2.7 million, you are way off base. Are you sure you are talking about a Vitz?
For 2.7 million Yen, you can get a brand new Mark X...
And in Japan, the Vitz doesn't come with a 1.4, just saying.
-2
NetNinja
@PeaceWarrior Dude, I've got a quote in my folder. I'd have to blot out my personal details to upload it but YES, I have it. I would bet against you for a case of beer but it would feel like cheating you.
I'm not off base. I HAVE the quote. It doesn't get any clearer than that. I have the QUOTE!!
Oh btw. You mentioned the Mark X. There's a Gazoo sports edition of that too. They lure you in the door and by the time you leave....it can be almost a million more.
If you want to buy a stock based Vitz with no radio to stay under 2 million yen be my guest. I'd be embarrassed to take my friends for a ride in that. What? No radio? Toyota doesn't give you a radio??
Anyway, I have the QUOTE! I'm not making this up. I don't hate Toyota but I have the proof. I originally wanted the new Aqua with all the little TRD goodies. Go to Odaiba, Toyota MegaWeb. It's sitting right there on the 2nd floor next to the Lexus line up. 3 MILLION+ at the bottom line with OPTIONS.
A lot of people haven't weighed yet on this thread. It's a popular topic. Hopefully some Toyota owners will confess to how Toyota jacks up their baseline price with options you need, then options you want.
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NetNinja
OH, One thing. I forgot. Perfect example. You can all go see for yourself. Toyota Aqua has this ugly blue line of rubber in it's dash. It's easy to see it's super distracting and most customers don't like it. You can buy an option package to change it to black which looks a lot better. Suzuki did not play games like that.
Sorry I should have added that to the post above but I remembered it after submit. That's a good example of how Toyota rolls.
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PeaceWarrior
NetNinja, I don't want to make you angry but if you tell me that you have a quote for a Toyota Vitz, 1.4L for 2.7 million yen, I have to tell you that there is something wrong with the quote. The only 1.4L available on a Vitz was a diesel engine and not a gasoline engine. I am pretty sure that it was never offered in Japan.
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NetNinja
Toyota Vitz G's version. Don't worry, you aren't making me angry. With a name like PeaceWarrior I can't imagine you being a troll.
You are right about one thing though. There is something wrong with the quote. That number 2.7. That's why I bought the Suzuki.
Anyway, check it out for yourself. Toyota Vitz G's (Gazoo Racing) version. The outside is frickin awesome. The inside...WTF?? Somebody seriously forgot to do the inside. That's where you come in......you come in, after options, at 2.7 million.
You don't have to take my word for it. Toyota MegaWeb. Make a reservation online *You must. Go down there and test drive it. You'll love the outside, you'll hate the inside. Suzuki didn't play that kind of game with their car. Suzuki Swift Sport is so good in fact that you don't need a single option they offer. Then they lowered the price a little bit more and let me pick and choose LEDs and little custom options such as custom base plates for the door wells, interior lighting near the floorboards.
Once again, don't get me wrong. I wanted the Toyota but Suzuki was literally 500,000 yen cheaper with almost every option they have. Again, go see for yourself. Suzuki Swift Sport.
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PeaceWarrior
Ah, it's a special edition. I got it. It does have a 1.5L engine. It is quite a beaut:
http://toyota.jp/vitz/gs/
They've used a turbo charger to bring it up to 180PS. It's got a new lower suspension and a better braking system plus a nicer body kit. In my opinion, Gazoo is the one pushing the price NetNinja, not Toyota.
Like you, I would go for the Swift (in my case because of the huge difference in interior space) as it would probably be the best day driver. But anything that pushes 180PS must be a lot of fun to drive.
If you want to make the best comparison between two automakers like Suzuki and Toyota, I would probably go for a comparison between the RS and the Swift Sport rather than a special edition car.
I'll have a look at that RS G though. Thanks for the info.
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ExportExpert
Wow Netninja they saw you coming with those quotes, I am in the trade in Japan and can tell you there is no Vitz with a List price over 1,790,000yen and we can very very often beat this price by miles. Same goes for Suzuki, honda, nissan in fact any make or model, they are always way way cheaper than what you'd pay at the showroom sales office.
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NetNinja
BTW. Gazoo is Toyota. Don't let the smooth taste fool you. Suzuki does not have that subsidiary anymore. Suzuki Sport was closed last year and became Monster Sport but they are separate from the company. Toyota Vitz G's version is a package that Toyota offers.
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herefornow
NetNinja -- did you bother reading the article, or at least attempting to understand the context? The author is talking about the CANADIAN auto show and how the Japanese car companies are faring OUTSIDE of Japan -- not within its protective borders, where they enjoy about 90% market share, and having boring styling and mediocre interiors is OK, because there is no real competition. But, here in the states, where folks regularly might shop one or two domestics (Ford or Chevrolet) , a couple of Japanese makes, and now at least one of the Korean brands (Hyundai or Kia) -- and all in a day or two, since the lots are often located in huge auto malls -- the Japanese are losing share. That is un-arguable. The Tokyo Auto show is completely unrepresentative of the auto world in general -- hell most of the foreign firms did not even bother showing up last year. To try to extrapolate your experience to the car-buying public anywhere but in Japan is pure folly. And that is coming from the owner of a Mazda. But what it is representative of is how Japan's isolation and protective market are hurting it in its international competitiveness in cars, just like it has done in other industries.
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NetNinja
@herefornow It works like this. If you can't make cars for the foreigners here, then you most certainly can't expect to go overseas and gain market share.
We both MIGHT agree that American cars are not necessarily getting better by large margins but Japan's own implosion is it's downfall. Practice makes perfect is NOT true. Only PERFECT practice makes perfect. The cars they are making here are sent / made overseas under different names. Some models are localized but not so often. Again my argument was targeted at the small compact sporty models that are more in demand due to the Global Economy.
As for the topic of cars.....well, I love talking about cars. It's always a good topic. I appreciate your opinion though. You are right about many things. The only thing you may have misunderstood was that my original post was to add to what the author talked about from a different point of view. I simply shared an experience that hopefully put a little more food for thought on the table.
Thanks for the post though.
-1
JapanGal
@Export....where can you buy a car not from the show room?
0
Foxie
I would definitely never buy a Vitz - 1. the name alone adding a wordgame means joke. 2. I rented one of those in Okinawa and the wind almost blew it over on the highway. The new eco-cars on the market make me puke, what an ugly design. Where are all the great sport cars Japan once used to make? Hyundai has some awesome designs out lately and I would even buy one of those but unfortunately that is no longer possible. Europe is swamped with Kias and for little cars, they really are great. I hope that Japanese carmakers come back with their imagination soon.
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cubic
That Vitz is a piece of plastic garbage
1
ExportExpert
JapanGal new cars going through the dealers auctions here alomost everyday, registered by the dealers to give them enough numbers to get the manufacturers bonus then sold at auction.
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tomatoflight
The creativity and boldness are gone. I remember cars like the Integra, RX-7, and Supra. All gone. The s2000 is gone. The Lancer EVO and WRX STI are still around but that and the GT-R/Fairlady Z are it. Where are all the fun cars? Japan is too focused on eco-cars.
0
avigator
No more Japanese cars for me if I resettle back in the US. Finito! For now, while I am here, no choice but to buy used Toyotas.
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gyouza
Spot on. Toyota dropped from being number 1 to number two. Disgraceful performance, right? The author does himself no favours here, I thought the last article was off the mark, but this one seems even worse.
The real challenge for the Japan industry will be to repeat what it did in the 1970's and take the game to the next level. That is what Korea is trying to do now (and doing well globally), but to suggest Japan is a dead duck is just bizarre. Toyota and Honda didn't just "make the cut" in the JD Powers survey, they excelled. Given the volumes of cars they sell (and even given the number of high profile recalls) that is pretty amazing.
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sfjp330
gyouzaFeb. 23, 2012 - 09:25AM JST. Spot on. Toyota dropped from being number 1 to number two. Disgraceful performance, right? That is what Korea is trying to do now (and doing well globally), but to suggest Japan is a dead duck is just bizarre.
Toyota is doing just fine. JD Powers top five cars, 1. Lexus, 2. Cadillac, 3. Porsche, 4. Scion, 5. Toyota. Three out of five top cars are from Toyota. not bad. Korean cars got a ways to go. Hyundai Sonata is let down by its numb steering, which has a dead spot on center and feels disconnected from events related to the front tires. The 2.0 engine is also less than perfect. It pulls strongly at high revs but offers all the sound of a hair dryer, and it lacks the refinement of the Toyota, Honda or VW engines. The Sonata’s styling looks like copy cat of Mercedes CLS550 or VW. Even high end Aquuas look like a carbon copy of S550. Can Koreans come up with any original design of their own? Maybe not. Hyundai still lack of refinement and there need much improvement. Just because sales are up but how about reasale value of 5 years old Sonata compare to Toyota Camry? That is a reflections of true value of the car. Hyundai is worthless after 5 years.
0
gyouza
Just to qualify...
That is volume of cars, not quality.
I was looking at JD Powers survey again, and their "APEAL" awards for 2011 and only Korean car appears, but multiple Japanese manufacturers are in their with a variety of models across a broad range of niche's. That is not an industry in decline.
The fact is that the Koreans are getting much better, let that continue as the outcome will be better choice for consumers.
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gyouza
sorry!
1
ExportExpert
Japanese auto makers and Japanese cars a far from DONE, give them some space to get some steam up again, they'll be back.
-1
herefornow
Export -- agreed, Japanese cars are far from done, but that "steam" you refer to is going to be hard to get back again, especially when they have apparently lost their sense of where at least the American market is going style-wise. Hell even the "new" Camry looks like a two-year old Buick or Ford. In addition they're mis-steps over the past few years have given the Koreans and American brands some real momentum. Finally, they are way behind GM and VW in the China market. Respectfully, anyone who is thinking this is just a small blip, and the Japanese will come roaring back as soon as the problems associated with Tohoku and Thailand are fixed, has not read a U.S. car review in the past couple of years, nor driven an American highway either. The disasters just made the Japanese weakness that much more accute.
0
herefornow
NetNinja -- LOL. that is easily the most twisted logic I've read in a while. To believe that because foreigners in Japan -- a captive audience with limited choices -- purchases Japanese cars, and, therefore, those products will please foreigners actually living abroad is absurd. Or vice versa. The Ford F-150 is America's number 1 selling vehicle, but is not even sold in Japan. Japan is ONLY representative of Japan, especially with its restrictive laws, small roads, high gas prices, strange vehicle taxing system, etc. Stop kidding yourself. That is what the J-car companies are doing, and it is catching up with them.
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sfjp330
herefornowFeb. 24, 2012 - 02:31AM JST. the American market is going style-wise. Hell even the "new" Camry looks like a two-year old Buick or Ford. In addition they're mis-steps over the past few years have given the Koreans and American brands some real momentum.
I’m glad that you are so patriotic. When you look at the design and performance history of American automakers and European and other foreign marques, you notice a significant pattern. Mercedes-Benz, Audi, or BMW will introduce a new feature or change the aesthetics of the design of its vehicles, which will be mimicked by Toyota, Nissan, or Honda and Hyundai and their subsidiaries, and the Japanese equivalent will be almost copied five years later with the release of a new American vehicle. In my opinion this is why no one wants to drive American vehicles, they are all too little, too late. And yes, no matter how you spin it, Toyota has a ridiculously better safety record and recall record than Ford. Period.
U.S. government is taking this opportunity to pin the Japanese carmakers to spruce up its U.S. car industry Everyone’s need to remember the rule is: if the production focus only on volume and not focus on quality normally will get problem, specially the defect product involves with death and injured, human life can’t replaceable. You are aware that GM cars have 25 percent of the total recalls and Chysler is right behind them.
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marcelito
I agree with Export expert - the Japanese car companies just need to refocus a bit , replace some of their designers ( Subaru anyone ? ) get more input from European design centres ( like Kia and Hyundai do ) and they,ll be back on top of the game. The article is too quick to write them off.
0
marcelito
Netninja - what color did you get mate? Swift sport looks cool and based on all the journo reviews is a great drive too - good choice no doubt.
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NetNinja
http://www.caradvice.com.au/159962/2012-suzuki-swift-sport-review/
See for yourself. Metallic Grey.
I know how to pick a good car. I always have.
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ExportExpert
herefornow
what laws are these ? please tell us the laws you refer to in relation to american vehicles in japan!
If Noda gave toyota and nissan 100s of billions of $s what do you think would happen, with out the hand out US car makers got they would have gone the way of the dodo bird.
Chrysler is a disgusting example of what not to build .
0
marcelito
Netninja...looks like we read the same websites mate...I read the caradvice.com review the day they put it out...Aussie press are all raving about the swift sport...I,m also considering it as my next car... Nice
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