Japan’s new export market is none other than itself

Article by Christian Andrei, on September 3, 2012

Japan automakers used to strictly follow the mantra that products sold in Japan are made in Japan. But now, several products are being built abroad and are being shipped home due to the strengthening yen, aging workforce and the improved skills of overseas workers. It appears that Japan’s new export market is none other than itself. Nissan Motor Co. made this decision in 2010, paving the way for other automakers to import foreign-made vehicles.

Two of the largest companies in Japan -- Shiseido Co. and Toshiba Corp. – also took the plunge. According to government data, the shipments from the overseas plants of Japanese producers have more than doubled and have broken records. There was a 31% increase in the last couple of years, compared with a 61% increase in total imports over the past decade.

Masato Sase, an auto-industry analyst and partner at Deloitte Tohmatsu Consulting Co. in Tokyo, referred to Nissan’s move as “epochal.” The trend represents one of the most major departures from an industrial strategy, started by the Meiji leaders who drove out the last shogun in 1868 and established western-style plants, says Bloomberg. The global competitiveness of manufacturers may receive a boost with having a “made by Japan” model but they’d have to sacrifice jobs at home.

They will be perceived to have a lower regard for nationalism and this will deepen deflation pressures. Shiro Kakinuma, a salesman at Taiyo Nissan Auto Sales Co.’s Shibaura Chuo showroom in Tokyo, which sells the Nissan March subcompact that’s made in Thailand, said that people consider the shift as “a sign of the times.” He said that the quality of the new March was cast in doubt at first but this isn’t the case anymore.

Topics: japan

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries