The Japanese Auto IndustryA Window on Japans Economy.ppt

The Japanese Auto IndustryA Window on Japans Economy Michael Smitka Professor of Economics Washington and Lee Alumni College July 20, 2000 Japans Car Market…?! Price -- a mere ￥16,800,000 Exchange rate: ￥108 per US$ (Wednesdays rate) Price in dollars: $155,555.55 And this is after the 10% strong yen sale discount!! Luxury Cars arent Representative Mercedes will sell 50,000 cars in 2000 2.8 million -- regular cars 2.0 million -- minicars 1.0 million -- light trucks 0.3 million -- imports Japanese Auto Firms Toyota Daihatsu Nissan Hino Honda Nissan Diesel Mitsubishi Motors Suzuki Mazda Isuzu Fuji Heavy Industries (Subaru) Defunct: Prince .. Ohta .. Kurogane .. Several others The Domestic Industrys Geography Firm All Cars Regular Minicars Toyota 917,120 917,120 Daihatsu 286,555 286,555 Nissan 388,548 388,548 Honda 375,725 223,506 152,219 Mitsubishi 307,949 161,815 146,134 Mazda 165,613 142,436 23,177 Suzuki 324,059 324,059 Fuji (Subaru) 151,100 64,799 86,301 Isuzu 35,529 35,529 Cars 3.061 mil 2.043 mil 1.018 m Trucks Buses 0.051 mil Import Brands VW 33,078 D/C 28,248 BMW 20,110 GM 14,217 Ford 13,511 All less than 1% share in a 3 million car market…. Definitions Production inside Japan versus global production Honda is almost as much American as Japanese! Toyota is rapidly internationalizing Missing from List?! Nissan is owned by Renault Mazda is owned by Ford Isuzu is owned by GM Suzuki, Fuji are partly owned by GM Mitsubishi will be owned by DaimlerChrysler Hino Daihatsu are now owned by Toyota Nissan Diesel is (?) Volvo Definitions (ii) Production by Japanese firms Mazda, Isuzu and Nissan are all controlled by non-Japanese companies Suzuki, Fuji Heavy Industries (Subaru) and Mitsubishi have foreign firms as major if not dominant shareholders Only Honda and Toyota are Japanese Production outside of Japan Asian expansion The Auto Industry 888,000 Manufacturing (1.3% of labor force) 262,000