U.s And Japan Car Industries :: essays research papers

U.S and lacquer Car IndustriesIt is unfortunate that the U.S. chose to use automobiles as its wedge to openthe alleged "closed" markets of Japan. One Japan-based managing executive of the bombastic Three has even admitted that they consider the Japanese automobile market tobe open. Japan is not the island of protectionism in a sea of free trade thatits tyro allege. The problem for the U.S. auto-makers is not a lack of marketaccess, but a lack of effort. The first step required for the U.S. auto makersto sell competitively in Japan is not to impose of ridiculous tariffs, but tohave Detroit bring up the quality to Japanese standards. All in all, the U.S.sdecision to use automobiles as its wedge to open the Japanese market was surelya dangerous one. In addition, the utilization of unilateral actions by the U.S.is clearly a violation of external trade law. Not only is this decision aresemblance of managed trade but a policy which will weaken the leadershipposition of the U.S. in the world economy as well.The U.S. needs to do what the Japanese did when they penetrated the Americanmarket hard market research and heavy investment. The Japanese spent billionsof dollars perusing American taste and manufacturing models that suited them.The Big Three have generally confined their efforts to sending models that theyhave made specifically for Americans. Bill Duncan, the head of the JapanAutomobile Manufacturers Assn. states that "it was the basic principals ofcompetition that made the Japanese automobile industry strong."One example which reflects the short-sightedness of the Big Three is theinsufficient number of right- mickle models addressable in Japan. Since cars in Japanare driven on the left side, all domestic makers produce right-hand drives. Itssimple, the inconvenience of a left-hand drive, at tolls, parking lots or whenovertaking another car is too dangerous. Naturally when the Japanese exporttheir cars to the U.S., in each of the 190 versions sold, they provide Americandrivers with a steering wheel where they expect it on the left side1. On theother hand U.S. exports have a grand total of 2 models which possess a right-hand drive. The Big Three sold a measly 22,000 left-hand models in 1994. Jeepsold 11,000 on their Cherokees alone, just because they remodeled it to a right-hand model2.Another area in which Detroit must seek change is in car size. In Japan, thenormal American cars are just too big. 80% of the cars in Japan are under 2000cc(2L.) Imagine yourself driving on the jammed packed, narrow streets of Tokyo.