Japanese automakers and car makers

51
Japanese carmakers

Transcript of Japanese automakers and car makers

Page 1: Japanese automakers and car makers

Japanese carmakers

Page 2: Japanese automakers and car makers

The Japanese automotive industry is one of the most largest industries in the world. Japan has been in the top three of the countries with most cars manufactured since the 1960s, surpassing Germany. The automotive industry in Japan rapidly increased from the 1970s to the 1990s (when it was oriented both for domestic use and worldwide export) and in the 1980s and 1990s, overtook the U.S. as the production leader with up to 13 million cars per year manufactured and significant exports

Page 3: Japanese automakers and car makers

began building their first automobiles in the middle to late 1910s. The companies went about this by either designing their own trucks (the market for passenger vehicles in Japan at the time was small), or partnering with a European brand to produce and sell their cars in Japan under license.

Page 5: Japanese automakers and car makers

The First Passenger Car Produced in Japan

Page 6: Japanese automakers and car makers

• Cars built in Japan before World War II tended to be

based on European or American models. The 1917 Mitsubishi Model A was based on the Fiat A3-3 design. (This model was considered to be the first mass-produced car in Japan, with 22 units produced.) In the 1930s, Nissan Motors' cars were based on the Austin 7 and Graham-Paige designs,

before World War II

Page 7: Japanese automakers and car makers

beginning of World War II

• 1925 until the beginning of World War II, Ford and GM had factories in Japan, where they dominated the Japanese market. The Ford Motor Company of Japan was established in 1925 and a production plant was set up in Yokohama. General Motors established operations in Osaka in 1927. Chrysler also came to Japan and set up Kyoritsu Motors. Between 1925 and 1936, the United States Big Three automakers' Japanese subsidiaries produced a total of 208,967 vehicles, compared to the domestic producers total of 12,127 vehicles.

Page 8: Japanese automakers and car makers

During World War II• During World War II, Toyota, Nissan, Isuzu and Kurogane

 built trucks and motorcycles for the Imperial Japanese Army, with Kurogane introducing the worlds first mass-produced four-wheel-drive car, called the Kurogane Type 95 in 1936. For the first decade after World War II, auto production was limited, and until 1966 most production consisted of trucks (including three-wheeled vehicles). Thereafter passenger cars dominated the market. Japanese car designs also continued to imitate or be derived from European and American designs. Exports were very limited in the 1950s, adding up to only 3.1% of the total passenger car production of the decade.

Page 9: Japanese automakers and car makers

World leader• Japanese manufacturers producing very affordable,

reliable, and popular cars throughout the 1990s, Japan became the largest car producing nation in the world in 2000. However, its market share has decreased slightly in recent years, particularly due to old and new competition from South Korea, China and India. Nevertheless, Japan's car industry continues to flourish, its market share has risen again, and in the first quarter of 2008 Toyota surpassed American General Motors to become the world's largest car manufacturer. Today,

Page 10: Japanese automakers and car makers

Japanese Automobile Industry

• : A Brief Review of Economic Relations of Japan

Page 11: Japanese automakers and car makers

Departing from U.S. Practices

• In the lean years following World War II, Japanese managers were not sure how to accommodate these changing market needs and the potential export requirements of low-cost, high-quality vehicles. Not surprisingly, many Japanese managers, especially at Nissan, first believed that the best way to compete in automobile manufacturing was to continue to copy as closely as possible the best techniques perfected at Ford, GM, and other mass producers.

Page 12: Japanese automakers and car makers

JUST-IN-TIME MANUFACTURING.

• 1950 at Toyota and in the mid-1950s at Nissan, managers introduced the “just-in-time” (JIT) concept for in-house production (or assembly) and deliveries of components. This required several departures from U.S. practices. Faster setup times for machine tools and stamping presses meant that each piece of equipment could be used for different models or components without long waiting times.

Page 13: Japanese automakers and car makers

• Japan is currently the world’s 3rd (with an annual production of 9.9 million automobiles in 2012.) and 1st from 1980-1993 and 2006-2008 the largest automobile manufacturer and exporter and has sixth of the world’s ten largest automobile manufacturers in ranking. In addition to its massive automobile industry,

Page 14: Japanese automakers and car makers

• The automotive industry in Japan rapidly increased from the 1970s to the 1990s (when it was oriented both for domestic use and world-wide export) and in the 1980s and 1990s, overtook the U.S. as the production leader with up to 13 million cars per year manufactured and significant exports. After massive ramp-up by China in the 2000s and fluctuating U.S. output. Japanese investments helped grew the auto industry in many countries throughout the last few decades.

Page 15: Japanese automakers and car makers

How Japanese Cars Changed the World: • competiveness between the U.S.A

And Japanese carmakers .• How to kill the u.s.a carmakers by

Japanese carmaker.

Page 16: Japanese automakers and car makers

• In recent years U.S. companies in a number of industries have improved their competitive performance. In automobiles, U.S. companies have responded to pressure from Japanese competitors, and Japanese investments have contributed to overall U.S. capabilities. In semiconductor manufacturing equipment, a resurgence of the U.S. semiconductor device industry and improved cooperation between companies and with government have played major roles.

Page 17: Japanese automakers and car makers

• Japanese companies are still major competitors, and Japanese government and industry are still pursuing policies designed to attain global technological and market leadership. But changes are occurring as well. Japanese companies are more open to reciprocal relationships. Japanese markets are somewhat more open, particularly in consumer products.

Page 18: Japanese automakers and car makers

AUTOMOBILES

• Besides being a significant contributor to the U.S. and Japanese economies as the largest employer among manufacturing sectors, the automobile industry is increasingly a high-technology sector, owing to its growing utilization of electronics, advanced materials, and information systems. If production and engineering systems are included in the definition of "technology," it is clear that a great deal of U.S.-Japan technological interaction (competition, learning, technology transfer through direct investment) has occurred over the years and continues in this industry.

Page 19: Japanese automakers and car makers

Market Access• The competitiveness setbacks suffered by the U.S.

auto industry and the corresponding gains by Japanese manufacturers during the 1970s and 1980s One advantage enjoyed by the Japanese auto industry from the early postwar rebuilding period is the asymmetry in market access between Japan and other major auto producing and auto-consuming countries, most notably the United States. Japanese autos were making considerable headway in the United States.

Page 20: Japanese automakers and car makers

Japanese Industry Advantages

• The Japanese auto industry's gains during the 1970s and 1980s

• The first advantage was in management

• General Motors and Ford were (and still are) the largest manufacturing companies in the world Their competitive environment during the post-World War II period allowed them to focus on the lucrative U.S. market and on each other as competitors competitive environment that emerged in the U.S. market and globally in the 1970s.

Page 21: Japanese automakers and car makers

second advantage

• A second advantage enjoyed by Japanese auto companies was in cost structure. Lower Japanese labor costs relative to the United States and the fact that wage increases lagged behind productivity gains gave Japanese auto companies a significant edge by the late 1970s. The gap was widened by a strengthening of the dollar in the early 1980s.

Page 22: Japanese automakers and car makers

Third advantage

• The rapid rise in oil prices during the 1970s led to greater demand for small cars in the U.S. market, which Japanese companies were better equipped to fill. Simultaneous pressure to meet new environmental standards and increase fuel economy strained the engineering capabilities of the Big Three and contributed to declining quality and performance.

Page 23: Japanese automakers and car makers

U.S. Resurgence

• Over the past 15 years or so, the U.S. auto industry has been engaged in the sometimes slow and difficult effort of responding to Japanese competition and closing these gaps, Prompted by competitive pressure At the same time, the Japanese auto industry suffered from sluggish demand in the domestic market and cost pressure on exports of vehicles and parts to the United States. Most Japanese automakers reported losses during this period. Some of the second tier Japanese producers, such as Mazda, have suffered a great deal during the downturn.

Page 24: Japanese automakers and car makers

Japanese recovered

• More recently, the Japanese vehicle market has recovered somewhat, the dollar appreciated considerably during 1995 and 1996, and conditions for Japanese automakers have stabilized and improved. Even during the 1993-1994 period, Japanese automakers as a whole did not lose a significant amount of market share in the United States, particularly in passenger cars. Transplant production has played an important role.

Page 25: Japanese automakers and car makers

Future Technology and Competitiveness Issues

• (1) continuous improvement in manufacturing and product development performance to deliver value to customers.

• (2) achieving effective participation in emerging markets, particularly in Asia, while balancing related technology and production transfer demands.

• 3) companies and national industries may create competitive advantage for the twenty-first century based on new technologies such as "intelligent" vehicles and highways.

The Japanese and U.S. auto industries, and individual companies, bring different strengths to this competition.

Page 26: Japanese automakers and car makers

Manufacturing and Product Development

• High-quality manufacturing and effective product development performance are fundamental competitive necessities for auto manufacturers seeking to establish and maintain leading positions in the most sophisticated and profitable markets. Although the top Japanese companies remain the world benchmarks in these areas, U.S. companies have made considerable strides in recent years. During the 1990s, for example, Chrysler adapted a number of lessons from Japanese "best practices" and improved its product development process considerably.

Page 27: Japanese automakers and car makers

In Canada.

• Japanese automakers Toyota, Nissan, and Honda, among many others, have long been considered the leaders at producing smaller, fuel-efficient cars. Their vehicles were brought to the forefront, due to the 1973 oil crisis which had a major impact on the auto industry. For instance, the Honda Civic was considered superior to American competitors such as the Chevrolet Vega and Ford Pinto. The Civic is the best-selling car in Canada for 12 years in a row.

Page 28: Japanese automakers and car makers

Japanese suppliers

• Although a number of U.S. auto manufacturers and suppliers are pursuing continuous improvements in manufacturing and product development by adapting Japanese practices and have achieved world-class performance, many others, particularly smaller suppliers, have not yet implemented these approaches successfully. Recent studies indicate that Japanese auto suppliers remain the most productive and deliver the highest quality

Page 29: Japanese automakers and car makers

Examples of Asian Parts Utilized by Japanese Automakers in U.S.-Built Vehicles

• Company Part Country

• Toyota Cylinder block Thailand • Honda Cast and forged components China• Mitsubishi Press components Korea• Mazda Radiator Korea

Page 30: Japanese automakers and car makers

Global Strategies and Approaches to Rapidly Growing Asian Markets

• Tapping rapidly growing markets in Asia will be key to future growth for U.S. and Japanese automakers. Asia has long been a secondary overseas market focus (after the United States) for a number of Japanese auto companies. These efforts have given Toyota, Mitsubishi, and others a head start in several of the most important markets. For example, Toyota hopes to build a leadership position in the rapidly growing Asian auto market through the development of its "Asia car."

Page 31: Japanese automakers and car makers

U.S. auto industry had "written off'

• Although it had appeared until recently that most of the U.S. auto industry had "written off' Asian markets besides China, the Big Three and a number of major suppliers are now pursuing more aggressive initiatives. With trade barriers in Asia likely to fall in coming years,

Page 32: Japanese automakers and car makers

During 1995• U.S. automakers stepped up plans to increase

their presence in Asia. Ford, which has 11 existing plants and engineering sites in Asia, announced plans to invest $53 million in two component plants in Thailand. China's leading automaker chose General Motors for a $1 billion venture, and as of this writing GM was in the process of choosing a location for a large manufacturing operation in Southeast Asia.

Page 33: Japanese automakers and car makers

The Effects a U.S. Free Trade Agreement with Japan would have on the U.S. Automotive Industry

Page 34: Japanese automakers and car makers

• Automotive issues often dominate trade discussions between trading partners and for good reason. Due to the large economies of scale that are required in this sector and the high value-added nature of the goods and services that are produced, the ability to design, engineer, and manufacture an automobile is often viewed as a crowning achievement for any economy. it has continually been demonstrated there is an “employment multiplier” of 9 or 10 jobs for every auto manufacturing assembly job that exists with a given market

Page 35: Japanese automakers and car makers

Japanese Automotive Exports to U.S.: 1985-2011

AutoParts MotorVehicles70,000

60,000

50,000

40,000

30,000

20,000

10,000

-. Japanese manufacturers maintain a 95 percent share3 of their home market largely due to a variety of factors that include long-standing non-government, non-tariff barriers .

Page 36: Japanese automakers and car makers

U.S Automotive Exports to Japan AutoParts MotorVehicles

6,000

5,000

4,000

3,000

2,000

1,000

-

Japanese government to intervene in currency markets to keep the real value of the yen at predictable levels, thereby keeping Japanese auto production cost competitive. This can provide Japanese manufacturers with both a stable planning horizon as well as a competitive advantage.

Page 37: Japanese automakers and car makers

The Trans Pacific Partnership (TPP) Agreement

• the effect of such tariff reductions almost always leads to an increase in exports of the products subject to tariff reversal. The possible FTA known as the Trans Pacific Partnership (TPP), now being negotiated between the U.S government and a number of Pacific Rim nations would presumably reduce tariffs on imported vehicles eventually to a level of zero. Japanese vehicle imports into the U.S market now face tariffs that range from 2.5 to 25.0 percent.

Page 38: Japanese automakers and car makers

A Model of Japanese Vehicle Exports to the U.S.

• The model forecasts Japanese vehicle exports to the United States in nominal yen. The model controls for such explanatory variables as the real yen-dollar exchange rate, total light vehicle sales in the U.S market, light vehicle production by the Detroit 3 in North America, light duty vehicle production by Japanese automakers in Japan, a special variable to allow for the effects of the great recession of 2009 and the great Japan earthquake in 2011, and the U.S inflation rate. The final explanatory variable is a reasonable proxy for the relative import price of Japanese vehicle exports to the United States.

Page 39: Japanese automakers and car makers

The Effect of a Changing Exchange Rate

• Japanese light vehicle exports to the United States. The essential findings show that eliminating the 2.5 percent U.S motor vehicle tariff will result in an increase in Japanese light vehicle exports of 6.2 percent. Of course, fluctuations in the yen/dollar exchange rate could mask the effect of the elimination of the 2.5 percent tariff reduction or appear to magnify it in a very short period of time because of the power of the exchange rate to affect exports.

Page 40: Japanese automakers and car makers

Behind Japan’s Success

Page 41: Japanese automakers and car makers

• the postwar success of the Japanese automakers is both an impressive and a puzzling achievement. The success is obvious and measurable; the reasons for it, far less so. Seeking explanations. To it they ascribe a continuous application of single-minded energy; from it they expect a continual flow of industrial.

Page 42: Japanese automakers and car makers

Take Competitiveness Seriously

• One of these habits is to consider thoroughly a proposed policy’s impact on the productivity of Japanese industry, on Japan’s competitive strength in the world market, and on Japan’s

Page 43: Japanese automakers and car makers

untried Japanese manufacturers

• compete against the likes of GM, Ford, Fiat, and Volkswagen. It has also been quite fearful that a large automobile market in Japan would provoke irresistible demands to open Japan to foreign imports, the one thing it has been determined to prevent.

Page 44: Japanese automakers and car makers

ability to earn her way in the world economy

• The more successful the Japanese automobile industry. The automobile, it has pointed out, requires the two raw materials that are in shortest supply in Japan: petroleum and iron ore. It also requires the diversion of scarce resources, both food-growing land and capital, to highways and highway construction. Instead of an automobile industry,

Page 45: Japanese automakers and car makers

• Toyota, Nissan, Mazda, Subaru Celebrate 50 Years Of Japanese Auto Industry

Page 46: Japanese automakers and car makers

53-year-old S360 sports car concept, signifying a definitive maturing of the Japanese car industry

Page 47: Japanese automakers and car makers

1966 Corolla, the world’s biggest selling car, an accolade the manufacturer picked up as early as 1977 when it surpassed the VW

Beetle’s sales.

Page 48: Japanese automakers and car makers

The Nissan stand featured four cars: the blue Prince Skyline GT on the left, the red Prince R380-A at the front, the silver

colored original Nissan Skyline GT-R to the right and the latest 2016 model year GT-R at the back. 50 years of history in four cars!

Page 49: Japanese automakers and car makers

Bibliography

• book.-Japan Technology and Competitiveness Trends in Key

Industries.• websites-• www.japanese auto industries.com• www.usa auto industries.com

Page 50: Japanese automakers and car makers
Page 51: Japanese automakers and car makers