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

Remember Zenos Cars, a British carmaker that specializes in designing and building lightweight and high-performance sports cars? If you are wondering how the company is faring with their E10 lightweight...
by - January 21, 2017
Mercedes-Benz has revealed that in 2017, its series 124 coupé will be celebrating its 30th anniversary. While this itself is a significant event, it will also mean that this model...
by - January 21, 2017
BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Amazon is now moving beyond the four corners of online retailing. Only recently, the retail giant has been awarded a patent for its Road Network system. Since the patented technology...
by - January 20, 2017
The newest version of the Lamborghini Huracan is not a Superleggera, but a Performante. When Lamborghini filed for a patent for a new name, there were still debates whether this...
by - January 20, 2017
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