Does Trump know why Japan does not purchase American automobiles? It’s style, not tariffs

Final month, US President Donald Trump introduced a commerce take care of Japan and hailed the opening of the nation’s market to American automobiles. However Japan had not charged any tariff on the import of automobiles since Seventies.

Japanese have by no means been keen about American automobiles not due to tariffs or any conspiracy, however due to a easy purpose that they don’t discover American automobiles adequate for them. That is additionally not a brand new phenomenon borne out of the decline of American manufacturing sector.

Since World Conflict II, the USA has been the principal ally of Japan — the nation was below full US occupation until 1952. However that would by no means lead to American automobiles turning into standard in Japan.

Final yr, prime 10 car-sellers in Japan have been all Japanese, with Toyota being the best-seller. Amongst American firms, Mercedes-Benz had a market share of round 1 per cent and Common Motors and Tesla had a share of lower than 1 per cent every.

The situation for American firms has been such that Ford exited Japan altogether in 2016 after saying that it had no path to profitability within the nation.

However why don’t Japanese need US automobiles?

There are a bunch of sensible, financial, and cultural the reason why Japanese don’t desire to purchase American automobiles regardless of the absence of any tariffs.

Firstly, Japanese prospects desire compact, fuel-efficient automobiles that go well with Japan’s slender roads and streets and tight parking areas. American automobiles are normally bigger and don’t go well with such situations. Therefore Japanese desire home automobiles which are fitted to such situations.

Secondly, Japanese automobiles are higher than American automobiles in terms of producing hybrid, fuel-efficient fashions.

Thirdly, Japanese prospects are typically loyal to home manufacturers like Toyota, Nissan, and Honda, and like them over international manufacturers.

Fourthly, Japan has excessive security requirements and plenty of American automobiles merely don’t meet them. Japan additionally has a right-side driving system versus left-side driving system of the USA. Because of this many American automobiles should be modified, creating extra burden on patrons.

Fifthly, many American automobiles have servicing points as service centres for such automobiles and the supply of spare elements and equipment can be problematic.