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Businesses Transportation Japan Technology

'The Supremacy of Japanese Cars Has Been 40-Plus Years In the Making' (bloomberg.com) 293

American business journalist Joe Nocera writes in a Bloomberg article about "how badly things have deteriorated for the U.S. car makers," after the recent news that both General Motors and Ford will soon be exiting the sedan market in the country. Slashdot reader gollum123 shares the report: Much of the analysis about Ford and GM's exit from the sedan market stressed that sedan sales have lost ground in recent years "as consumers have gravitated toward pickup trucks and sport-utility vehicles," as the New York Times put it. If you look at the historical sales figures of the top Japanese sedans, you'll see a small decline in recent years, but nothing like the big drop-off in sales that have hammered the American companies. So in addition to the overall decline in sedan sales, there is a second, largely overlooked, dynamic taking place: Americans have only stopped buying American sedans, not Japanese sedans. The American car companies now say they are going to count on profits from trucks and SUVs while moving toward autonomous and all-electric vehicles. They had better hope that transition takes place quickly.

I couldn't help noticing that while the top three selling vehicles in the U.S. are, indeed, American-made trucks, No. 4 on the list is Nissan's top SUV, the Rogue, the sales of which have gone from 18,000 in 2007 to 403,000 last year. No. 5 is a Toyota SUV, the Rav4 (407,000 in 2017). No. 6 is the Honda CR-V (378,000). And the leading American SUV? It's the Chevy Equinox. Last year, Chevrolet sold 290,000 of them -- 100,000 fewer than the Toyota Camry.

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'The Supremacy of Japanese Cars Has Been 40-Plus Years In the Making'

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  • Comment removed (Score:5, Insightful)

    by account_deleted ( 4530225 ) on Thursday November 29, 2018 @06:44PM (#57723016)
    Comment removed based on user account deletion
    • by Tuqui ( 96668 )

      The most insightful comment this year

    • by jbengt ( 874751 )
      Yeah. I once walked out on a dealer because every time I tried to negotiate the price, he talked about monthly payments. The only time I've financed a car through a dealer is when the interest rate offered was less than inflation.
  • Comment removed (Score:5, Interesting)

    by account_deleted ( 4530225 ) on Thursday November 29, 2018 @06:48PM (#57723038)
    Comment removed based on user account deletion
    • They would be huge with no corresponding benefit. At least the smaller cars from today are easier to park.
      • Not really. Go find a picture of any of the current "retro" muscle cars parked next to one of the original classics - the new models are comically huge in comparison. They don't look big to our modern eyes because everything else has grown in size so much. Even a lot of the land barges from the 1970's aren't even as large compared to modern cars. They may be a bit longer, but the modern car is just as wide and much taller, and weighs more too.

        It's not just the Americans either. The largest Honda from 4

    • I like your idea.

      Look at recent trends for TV reboots like Magnum, PI, Hawaii 5-0, Murphy Brown ...

      Look at the record players (Bluetooth for crying out loud) and the booming vinyl business.

      I'd go for a vintage reboot of Mustang, Impala, Cougar XR7, etc.

    • by Trogre ( 513942 )

      Good idea. I'd happily drive an electric carbon-fiber Charger.

    • by kackle ( 910159 )
      You can't. Why? Because the MPG laws today won't allow such sizes; that's why we're stuck with mostly "bubble cars" today.
  • Meh (Score:5, Insightful)

    by alvinrod ( 889928 ) on Thursday November 29, 2018 @07:00PM (#57723106)
    Given how the modern automotive industry works, I'm not sure if it matters. Japan manufacturers a lot of the cars that it sells in the U.S., in the U.S. so I don't think there's much worry over jobs being lost. Also, all of the Japanese companies are publicly traded, with a few of the largest shareholders being American companies, American banks, or other foreign firms that are in turn partially owned by Americans. If it gets American companies to invest in electric vehicles in the hope of regaining market share, I don't see how anyone could really complain.
  • by bobstreo ( 1320787 ) on Thursday November 29, 2018 @07:07PM (#57723140)

    cars.

    Rust was the worst issue, but when Japanese and Korean cars started flooding the market for less money and lasting about 30-50% better (in terms of mileage and gas economy)
    it seemed to be a wake-up call for US car makers. This was hubris on the part of Ford, Chevrolet, Chrysler... They had their cheaply manufactured, planned obsolescence system and they were going to stick with it.

    I'm guessing at this point, more US vehicles are produced in Canada and places like the Toyota factory in South Carolina build more vehicles than Detroit.

    New technology (self driving cars, electric cars...) eventually mean that people don't need to buy a vehicle unless it's for work. Need a ride someplace, just order a car...

    • by nwf ( 25607 )

      Many non-American brands make vehicles in the US, e.g. Honda, BMW, Toyota, etc. For SUVs they can get around some tariffs by doing so, plus it costs more to ship huge SUVs across the Pacific. I just got an Acura SUV that was made in Ohio.

    • by Xylantiel ( 177496 ) on Thursday November 29, 2018 @08:05PM (#57723388)
      And this is why tariffs are mostly bad. Frequently foreign competition wins because it is making a BETTER PRODUCT. This means by slapping a tariff on it you are hurting the competitiveness of all users of that product to reward the poor management of those that make it domestically. Sounds a lot like the government choosing winners, and particularly bad because it only works by artificially turning losers into winners. This is a long way of saying that protectionist trade policy is nearly always, in the end, self-defeating. There are reasonable interim measures to prevent dumping and market shocks (including the labor market), but straight up protectionism is basically a bad idea from an economic and security standpoint. We want interdependent economies because they increase efficiency, prevent wars, and make the world more equal.
      • Re: (Score:2, Troll)

        It was a one-way street. Japanese could sell their cars in America, but Americans were blocked - by tariffs - from selling in Japan. How could there have been any other outcome? It was unfair from the beginning.

        Tariffs - great for every other country but America, but God forbid if we want to protect our workers by raising the cost of foreign goods. It's just bizarre how these tariffs work spectacularly well for Japan, Germany, China, Canada, etc.

        Import tariffs are necessary to protect US quality of li

        • by trawg ( 308495 )

          That is a bit different to the picture painted by this other comment here: https://tech.slashdot.org/comm... [slashdot.org]

        • by AmiMoJo ( 196126 )

          It's not a one way street, Trump wants US companies to build cars in the US and export them to Japan. Japanese companies built factories in the US.

          US companies could build factories in Japan if they wanted to, but US cars aren't really suited to the Japanese market. US cars are too inefficient, too large, don't have the features and localization that Japanese people expect. The US is claiming that it's strict Japanese emissions standards that are to blame, but even if those were relaxed they wouldn't sell m

        • by Sique ( 173459 )
          I know the story of the alleged German tariffs on imported cars, the infamous 19%. But what never got into the heads of the U.S.: German manufacturers have to pay them too! Every car sold in Germany has 19% taxes on it. It's called VAT, and it applies to most goods.

          When I heard that the U.S. government complained that German customers have to pay VAT on U.S. cars, I was wondering if I was in some bizarro parallel world like Alice in Wonderland.

      • And this is why tariffs are mostly bad. Frequently foreign competition wins because it is making a BETTER PRODUCT. This means by slapping a tariff on it you are hurting the competitiveness of all users of that product to reward the poor management of those that make it domestically.

        Somehow lost in the debate is that before the income tax tariffs were a key, maybe even primary, form of paying for government. If the tariff debate were re-framed as applying to all imported goods (no exceptions!!) and the income tax being abolished for example that would be a great trade that most people could get behind.

        We want interdependent economies because they increase efficiency, prevent wars, and make the world more equal.

        That was the thinking behind the world not having WW1. It wasn't true then and still isn't true now.

  • Study US and UK weather conditions.
    Listen to what people who buy and sell cars say about local conditions.
    Cold morning in winter? Car has to start to get car owner to work on time. Test car during design until it can start in cold weather conditions.
    Understand normal people have jobs and have to get to work on time. Having a car that can start without needing repair work is important.
    Understand the politics of pollution. Have something like CVCC ready for political winning.
    Make car look great every
  • I wanted to buy a Chevy Cruise back in 2012, but then I remembered how much "fun" my GM Alero had been. Also, I was still stinging from the $1000s I lost in stock when GM got its bailout. I bought a Mazda 3i and I love it. By by American cars forever.
  • They lost sales because they cost too much.

    They can aggressively price their cars, offer incentives and it will sell.

    Those cars sold more in the previous years because they got the dealerships to sell more with financial incentives.

    Go out buying a car and the prices of cars are all over the place. There are leases being offered that are hundreds of dollars different between the same class of cars. Even the same car can be leased for $300 one year and it's $550 the next year.

    I've noticed that east an

  • in with the new.

    America is stuck in the present and too goddam greedy to be farsighted (just look up Gary Larson).

    The old Capitalism was, "If you don't have to change, then fon't spend the money."

    Long-term planners see around corners and are flexible and welcome the capital advantage of change.

    The American automobile manufacturing plants are going the way of textiles, shoes, toys, etc.

    Every goddam time David Muir presents the "Made in America," snippet, the fucking stuff is mom & pop and useless as tits

  • It was the 4th car I'd owned, first one bought new. Biggest pile of shit I've ever driven. Remember, this was the days of "Quality is Job 1". Within a year I'd replaced every light bulb in the car. At 2 years I went out to go somewhere, dead battery. No warning, just dead one day. Fortunately it was a stick so I could push start it (by myself, yay me!) to get a new battery. The fucking seat broke. This was when I was still a skinny ass, maybe 170 lbs fully dressed with full pockets. Took it to the
    • First car I bought was an 86 Mercury Lynx. It was used and was about 6 years old when I bought it so I was able to pay in cash, about $1,800 at the time.

      I too had the battery slowly die but it had a manual transmission so it just needed a push. The worst part that I experienced was when the computer died. I had to get it towed to get the part replaced. But it was about 10 years old at that point. The one problem that I did run into was that sill under the hood rusted through, which dripped water into t

  • by Tablizer ( 95088 ) on Thursday November 29, 2018 @09:05PM (#57723640) Journal

    To put it another way, the American car companies have never been able to shed the reputation they gained in the 1970s for making lousy sedans. [Even though newer sedans are comparable]

    Once you get a bad broad reputation, it's hard to kick. Your newer stuff has to be better than the competition to correct the reputation. "Equal" is not strong enough. That's just human psychology in action.

    It's like somebody with a notorious reputation for lying. To clean their reputation, they'd have to lie less than average for a good while to get back in good graces. Lying the same amount would supply enough lies to reinforce their existing reputation.

    You hear that Microsoft, Oracle, Comcast, and IBM?

  • by williamyf ( 227051 ) on Thursday November 29, 2018 @09:48PM (#57723854)

    ... from now we will be reading an article saying that "The supremacy of *Korean* cars has been 40 years in the making", and in 30 to 40 years from now, we will be reading an article titled "The supremacy of Chinese cars has been 40 years in the making"

    that is the cycle of such things. Happened with cars, consumer electronics, tvs and monitors, computer components, appliances, the works.

    I was born in late 1972, and I do remember a lot of things...

    Remember the the 70's when japan was the place were cheapo-low-quality plastic toys and shoody appliances were made? everyone wanted a Zenith or GE, or RCA TV. No stinking toshibas, or Hitachis! And cars, everyone wanted a chevy or a ford (or a european). Japanese cars were a synonym of cheapo-low quality.

    Remember the 80s when having a "Samtron" monitor in your computer was a sign of low quality? Rember in the 80's, when no one in their right mind would buy a Hyundai car? Nope, everyone wanted a toyota then, and a trinitron TV, or a NEC monitor. Samsung and Lucky Goldstar TVs were for loosers!

    Remember the '90s and early 00's, when no one in their right mind would buy a Chery or a Geely car? Or a Haier TV or appliance? What now, GE appliances is a wholy owned subsidiary of Haier, which is the bigest Appliance manufacturer worldwide, while Geely owns both volvo and Lotus, and chery is assembling jaguars and land rovers for the chinese market.

    So, countries upend other countries. do not dismiss them on the base of "percieived" quality (it will improve) or "perceived lack of innovation" (for they will innovate). Just take solace in that, just like in Japan, the chinese juggernaut will stop, and be upended by someone else...

    • by djinn6 ( 1868030 )

      I think what you're describing is the result of a cycle that all countries go through:

      1. The beginning:

      A country has sensible laws, lots of unsatisfied demand and few established players. The public is engaged and investment in infrastructure, education and research is high. This leads to low costs, easy access to skilled labor and untapped technology. Countless individuals rise up to take advantage of the opportunities, creating numerous small businesses.

      2. The rise:

      The most effective small businesses expe

  • And they succeeded. But they had to work at it some because over the years they accidentally put out some perfectly fine cars.

    I drove a Pontiac Grand Am (with the aluminum 4-cylinder, not the iron V6 boat anchor, up front) all over the country for more than a decade, my brother drives it still. And I bought it used. The Ford Fusion of recent years was my preferred flavor of rental car, vastly better than getting stuck with a Kia on trips. I always thought that it would be nicer if it stuck out a little le
  • Our Honda Civic Hybrid was a dog. Lots of transmission trouble and other weird issues. I've owned Nissans and Toyotas and after 5 or 6 years they start falling apart and turn into beaters.

    Our 2008 Mercury Mariner has been trouble free for over 10 years. Our 2013 Tesla Model S has also been pretty much trouble free.

    In my experience, the supremacy of Japanese cars is a myth. They are not more reliable. Don't get me started on Jaguar and Volkswagon... If you wisely select the right models, American cars ar
    • Just like you, I am only speaking from personal experience.
      I have owned a RAV4, Highlander, and two Tacomas.
      All have lasted 10 years with 150,000+ miles, when I traded them in for a good chunk of $ to buy a new one (Highlander is on year 6 right now). Never had any issues other than normal wear and tear.
      I did have the misfortune to own a Dodge Durango. It lasted just past it's 3 year warranty when major repair jobs started happening with frequency. After thousands of dollars I dumped that POS and got
    • I had to get a replacement daily driver in 2009 and found a 1990 Toyota Corolla with working A/C for $3,000. I drove it for around a year before replacing it with my Wife's 2004 model, she started driving a minivan. The only two things that I could find that didn't work or weren't quite right was the cassette deck that was jammed, and nobody had a battery with terminals of the same dimensions as the original, so I had to replace the clamps on the wiring. That was the first car I've ever owned that I bought

      • Could be luck of the draw. Maybe I just picked the wrong models...
        • I think there probably is a lot of misplaced hype in brand names. I count Corollas as being exceptionally reliable. But I have a few friends that have owned 4runners and had lots of problems with them.

          In part that is why I plan to get a Tesla in a decade or so. By then the Model S and 3 should be well established enough that they should be nearly bullet proof. That is of course provided that they don't completely revamp the designs multiple times between now and then.

          • Our model s is coming up on 6 years and it has been amazing. I'll buy another Tesla when this one hits 8 years. I still recommend the extended warranty though for the peace of mind. Electric cars are way more reliable, but when something goes wrong it can be pricey to fix. So far I would be ahead without the extended warranty but I'm glad I have it. My $.02
  • That summary reads like a case study straight out of Peter Senge's The Fifth Discipline... Detroit making all the wrong decisions for short term gain (and long term demise). Don't they read Senge in Detroit?

    For that matter, the software industry with their Agile fad should also read it.

    Anyway, my 19-year-old Toyota pickup truck with 230 000 miles on the clock still goes like a rocket (as far as diesels CAN go like rockets...). And despite all the scratches and dents (but without rust), not a week goes by

  • I had a 2014 Nissan Rogue. It's actually a rather nicely designed vehicle with a good layout, nice controls, and a lot of functionality. It is also one of the few mid-sized vehicles with a 3rd row seat. This is essentially, a modern station wagon with AWD.

    However, I encountered two issues with my Nissan Rogue AWD.

    ISSUE 1) Fuel Economy - It never came close to the estimated EPA mileage - not even in the ballpark. In fact if you review

    RATED: 25 City, 31 Highway, 27 Combined.

    Over the life of the vehicle I averaged 23.5 MPG. Now I drove nearly a 100 miles a day, mostly highway. And if you look at FuelEconomy.gov, you'll see my mileage was the norm.
    https://www.fueleconomy.gov/fe... [fueleconomy.gov]

    Frankly, I believe that Nissan used a computer algorithm to put the vehicle in a more efficient low-power fuel economy mode for testing. I believe you only enter this mode if you are driving like 50 MPH. It is one thing, to expect EPA estimates to be off. But usually, when you buy a vehicle, you at least expect your HWY mileage to be better than the CTY rating. And considering my prior vehicle was a Nissan Versa, rated at 30CTY, 37HWY, 33C, in which on the same commute I averaged around 36.5MPG. So yes, I felt very deceived.

    ISSUE 2) 36K/3YR warranty - so I added the extended warranty at purchase as well. I had an intermittent issue with the AC they told me to bring it in when it was occurring. However, when it finally did and completely failed. The vehicle was at 37,000 miles and 13 months of age. Took them a week to diagnose and fix the problem. Which they claimed was the blower motor fuse, and that the blower motor was fine. Nissan refused to cover it under warranty. A 13 month old vehicle that had the problems in it's first year. Fuses are considered replaceables, so the extended warranty didn't cover it. $700+ to fix a brand new car. I fought with Nissan national, and they finally covered half the cost. Within 6 months, the problem was back. Nissan wanted more money to diagnose.

    Driving a 100 miles a day in summer heat sweating while going thru a nasty divorce and battling depression is NO FUN. There were days I damn near wanted to drive the thing off the road, or into a showroom. Finally, I gave up, why fight to struggle and pay for a vehicle that wasn't working. It needed a set of four new tires - runflats so about double the price. And I gave up and let the bank take it.

    Thanks Nissan...

    Love the car, but the fact Nissan wouldn't stand behind their product when it was only a year old. NOT COOL!!!!

    (And without a doubt they are cheating on the EPA mileage and need to be penalized on it like Kia was.)

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