Lead by Toyota (TM), Japanese car companies have had their way in the American markets. It is now estimated that the largest car company in the world will have 15% of the US market this year or next, passing Ford for the No.2 spot, with only GM ahead of its.
Honda (HMC) and Nissan have also done well here, outselling European manufacturers like Mercedes and BMW. If the Japanese continue to do well as a group, it is not unimaginable that they would own a quarter of the market in America by the end of the decade.
The Japanese are also gaining share in Europe at the expense of GM and Ford’s Europe operations along with the large continental car companies, especially VW and Fiat.
But, the Japanese cannot sell cars in their home market. In the twelve months that began in April, Japanese car sales will hit their lowest level in 23 years, In the last quarter, Toyota’s sales fell 12% and Nissan’s 20%.
The irony of this news is that the drop in sales is based on lack of new model introductions. "The domestic market will keep shrinking because of a lack of new attractive models," said Atsushi Kawai, an auto industry analyst at Mizuho Investors Securities in Tokyo. "Consumers are allocating their money to buy other things."
US car companies have not learned much from mistakes in their home market. It appears that the Japanese are headed in the same direction.
Douglas A. McIntyre
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