Sunday May 27, 2012

It remains the most closed auto market in the developed world. Imports make up less than 5% of all vehicle sales in Japan compared to 45% in the U.S. This is clearly not two-way trade nor the result of market forces at work. The one-way street is a U.S. job killer.

Rep Sander Levin, one of 4 key members of Congress on trade issues, who say that Japan must first reverse decades of protecting its home auto market before they should be invited to join the TPP. (Detroit News)

  • 0

    Godan

    Been following this issue for over 20 years and I have come to the following conclusion: As Mr. Levin surely is aware of (he's got some impressive academic credentials) America just doesn't care about selling cars in japan. However, when you talk about "big-ticket" items: airplanes, jets, military hardware, etc... Boeing and other American companies have a lot less trouble selling their goods here. Heck, America even got the Japanese to open (kind of) their insurance and financial markets. America, for some reason, just doesn't think it is important to sell cars here. I recommend Mr. Levin stop this grandstanding and investigate why Washington DC doesn't think selling cars in Japan is important.

  • 0

    Harry_Gatto

    Don't understand why he says that the market is "closed", US makers are represented here but the buying public doesn't buy many of them. German makers are also represented here and they do very well, especially in the prestige/luxury segment where their penetration far exceeds the overall average of 5%. Market forces, of course but you may speculate as to why this is.

  • 0

    VicMOsaka

    As far as I know, there is nothing stopping the USA from selling their cars in Japan. Instead of moaning about it, why don't USA car makers set up their own dealerships in Japan like the Europeans have. Trouble is, Japanese are not that keen on American made cars. And, what about the Japanese car companies in the USA who have set up factories thereby giving many Americans employment.

  • 1

    Michael J. Morris

    Up until recently cars made in the Us were shoddy, in my opinion. Here are two examples of why I know drive a Japanese car. I first had a Jeep Cherokee, and while it was a good SUV, I had an accident after being cut off by another car. Smashed into a utility pole. did major damage to the front end, and then had to wait almost 4 months for it to get repaired as they had to order all the parts from the US and it took so long to get here. Then after visiting home one summer, my wife really like the Chrysler Voyager minivan, the best seller in North America, bought it here, and proceeded to have more than 7 recalls to repair problems. When I wanted to repair, replace or change something, could never find the parts, hell the battery for the remote cost almost Y5000. Since then have been driving a Toyota Mark X , not a problem, no recalls, can find everything I need at any shop around. Another point, when I first came to Japan the big three were so arrogant, they were selling cars that were all right hand drive, luckily then decided that to gain customers they needed to rectify that problem, but you can see in a nut shell why US cars are not popular here.

  • 0

    GW

    Godan

    the reason Japan buys those big ticket items is because they dont make their own, except some parts, so they buy from the US, partly to fend off criticism, & because they need the stuff.

    Look at grapefuits, imported, because Japan dont grow them, at least not in any quantitty I am aware off, but try selling apples.........

  • 0

    GW

    US car makers blew in the 70s-80s, they refused to get INTO Japan in a serious way, no dealers, no parts inventory etc, & the locals are superb at brainwashing the Japan made = good, foreign made = NOT good, in more than just cars.

    And here we are. I doubt US makers will do much now as Japan is in decline, it just isnt worth the bother now, we see how foreign oil refiners are getting out, selling, closing down, the writing is on the wall. Plus other countries are easier to deal with so why butt yr head in Japan.

    Having said that & because Japan status/power is seriously heading south you will see other countries take a firmer stand with Japan where 20yrs ago they wudnt dare, frankly its incredible to see how far Japan has fallen since I landed here.

  • 0

    Reckless

    I have owned US cars and don't think there is a big gap in quality. The real issue is the extremely high tax on owning a car, gasoline and the narrow roads. US cars are generally bigger, with much stronger engines, and less fuel efficiency. I would love to have a Chevy Tahoe in Tokyo, but I couldn't afford the gas, so I stick with a Honda.

  • 0

    kurisupisu

    Let the Japanese start subsidising Porsches and I'll buy one -no problem!

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