The 57th United States presidential elections will take place on November 6, and naturally, Barack Obama is aiming for a second term. Politics being what it is, the automotive industry is pushing hard to get some things done.
One such issue is the inclusion of Japan on the Trans-Pacific Partnership negotiations, which Obama hopes will create a free-trade zone between the U.S. and the Asia Pacific region.
Currently, apart from the United States, there are eight other countries negotiating the plan including Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore and Vietnam. But three others want to join the talks that will be held this March in Melbourne.
The problem is that, while Canada and Mexico are welcome to join, Detroit's big-three automotive companies strongly object to Japan. Obviously, the largely industrial Midwest is not a region Obama can ignore if he wants to be reelected.
Matt Blunt, president of the American Automotive Policy Council that represents GM, Ford and Chrysler, told Reuters: “Adding Japan to the Trans-Pacific Partnership negotiations will lengthen those negotiations…by years and perhaps keep them from ever coming into fruition.”
Are American carmakers afraid of their Japanese rivals? Blunt dismisses the notion.
"As advocates for free trade, we're concerned about adding an economy like Japan," said Blunt. “We obviously compete with a lot of automakers here and for the first time (in 2011) since 1988, we gained market share. We’re making a very competitive product now that we export all around the globe."
In plain English, Detroit's Big 3 will fight against including Japan in the free-trade agreement talks unless it opens up its car market to their products.
To reinforce his argument, Blunt pointed out that Japan ranks last in auto imports among the 30 countries that participate in the Organization for Economic Cooperation and Development.
“Japanese automakers control more than 95 percent of their domestic auto market”, he said. "All other OECD members, except Korea, have an import market share of more than 40 percent."
A source from the Japanese government, who wishes to remain anonymous, refuted Detroit’s claims that its policy is what’s keeping imported cars out of the local market. “Japan has no tariffs on cars and our acknowledgment is Japan has non-tariff barriers either”, said the source.
So why do Toyota, Nissan, Honda et al practically have the market to themselves? The same government source has an explanation: “U.S. cars do not fit Japan’s market or Japanese consumers’ requirements because of size, high fuel consumption and higher prices. They need to have a line-up that suits Japanese consumers’ preferences.”
Story References: Reuters
18 Comments:
Hey, "big 3", shut up and make good cars, because we won't back your asses with out money if you fail again, but to be honest I think the White House is behind the objections, America won't be able to polarize the TTP with Japan in it, especially if Japan and Korea will stand together against American decisions. In the end, it's all about the money.
Japanese car makers owning a huge market share in Japan is a normal thing, look at how many kei cars are on Japanese streets(Americans don't make kei cars), at the huge gas prices in Japan, and at the taxes the Japanese government puts on over 2 liter engines. So, make cars that people need and then whine that they don't buy it, big 3 jerks.
Can somebody please tell me where to get a pair of those awesome-looking grasshopper legs the guy is wearing at the Honda plant?
Honda created them to provide more comfort for it's workers, don't know if they are for sale, just as Honda via email or fb.
http://www.wired.com/autopia/2008/11/honda-announces/
Enjoy this site.
Not really the big 3 anymore now that the German, Japanese, and Koreans are making cars in America while companies like GM are building cars in other countries but say they are USA built.
And that's where you're wrong. I've done the check last year for gm, and thankfully, I've saved the results.
In Canada, GM has 3 assembly plants and 2 engine plants. 5 total.
In Mexico, GM has 3 assembly plants and no engine plants. 3 total.
5 + 3 = 8 plants in NA outside the US.
In the US, GM has 20 assembly plants, 15 engine plants, and 15 stapping/componet plants.
20 + 15 + 15 = 50
Total GM NA plants = 58
Since MOST implys more than 50% of anything, saying that MOST GM plants are either in Canada or Mexico is not only wrong, but dishonest.
8 / 58 = 0.1379310344827586 or 13% or GM's NA plants are not located in the United States.
13% is not considered 'most' by ANY stretch of the imagination.
source: http://www.gminsidenews.com/index.php?page=factory_guide
As before, I can't speak for Ford or Mopar as I've not bother to do a check for them yet.
Are the Germans, Japanese, and Koreans now saying they are all built in their respective countries...NO......everybody builds cars everywhere..........it's a global economy we are mainly adults here so let's cut the bullshit.
American prefer to buy Japanese cars over American cars, so why force the Japanese to buy American?
Thanks - cool article.
Thanks - cool article.
How about "fair trade", not "free trade"? But I also agree with Cable. Why are the American companies balking at letting in the Japanese? If the American companies build a quality product at competitive prices then they shoudn't have to worry. Sure, they have gained market share, but that was because of a combination of factors, including natural disasters in Japan. Now, the American companies have to work even harder to maintain or gain market share. Just because they've had some success in improving quality and bringing to market some vehicles that consumers actually want, they can't rest on their laurels. Slapping a few cosmetic changes on current successful models in the coming years will no longer work. They have to become leaders in technology and keep their fingers on the pulse of what consumers want and need, now and in the future. Otherwise, they are doomed to make the same mistakes that they have in the past.
O'Bummer and his Evil Zion Jew masters trying to further Dumb-bend peoples minds. How is it Possible!?
Even though I'm a forced shareholder of GM (a.k.a.: the American taxpayer), Detroit and the 'AAPC' need to get a clue: Japan builds cars specifically for the American market, and guess what? They sell well in America. There's a lesson in there somewhere..........................
Please supply source for your statement.
You are living proof of the value of condoms.
Reg; " “Japan has no tariffs on cars and our acknowledgment is Japan has non-tariff barriers either”," Essential true, but ...> docs.google.com/viewer?a=v&q=cache:xjBmKMnDo-YJ:www.americanautocouncil.org/default_files/Japan's%2520Protected%2520Auto%2520Market.pdf+&hl=en&gl=us&pid=bl&srcid=ADGEESjo4gcF2diDUrjNqja6zFyXNIFgnaNg1jPw6U7-8kKp2RRerebIrDQszlhP_qbXVM911nbPtt4XSDIufr02MSkqBDtyvuXUfzvKUt_hOsbwQQanGTQu09_xQP4xv01XibN7SXKD&sig=AHIEtbR2GljnZ0HTuZcO_OKL7bXqju7Dcg&pli=1
"Cutting the Bullshit" Good luck on that Hugh, ridding CARSCOOP of the sand box mentality types...... spitting into the wind.
I am dead.... I am a an Angel.
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