Globalization, New Technology, New Products Bring New Dynamic To Japan's Auto Markets

WASHINGTON, June 30 -- Japan's vehicle market is developing a new dynamic based on rapid globalization and a race for new products and new environmental technology according to Japan Auto Trends, newsletter of the Japan Automobile Manufacturers Association (JAMA).

According to the newsletter, new models, exciting new features, and clean cars powered by advanced technologies all at reasonable prices are exciting consumer enthusiasm. These forces will likely be translated into higher sales in this and following years.

"Consumers are expecting more frequent model introductions and new gadgets to go with them. For example, a recent survey shows that sports car models must be introduced at least every two years to maintain steady sales," said William C. Duncan, General Director, JAMA USA.

"Foreign equity ownership and management participation are bringing new models to the market as well as cost savings to manufacturers through the use of common platforms, consolidation of parts supply and technology sharing.

"GM's Opel division introduced the Zafira, a SUV model built by Fuji Heavy Industries. Nissan shares vehicle platforms with Renault and markets Renault models through Nissan dealerships in Japan," added Duncan.

The newsletter's "Executive Highlights" also focuses on Wilfried Porth, President and Chief Executive Officer of Mitsubishi Fuso Truck & Bus, JAMA's 15th and newest member.

The company is a spin-off of Mitsubishi Motors, which created the new entity as a wholly owned subsidiary. In March, DaimlerChrysler, which holds a 37 percent share of Mitsubishi Motors, acquired a 43 percent stake in the new Mitsubishi Fuso.

Porth tells the newsletter that success would come from nurturing the alliance with DaimlerChrysler, which will allow the company to improve cost performance, quality control and overall product marketability.

Porth announced, within weeks of becoming company president, that Daimler's overseas dealership network could sell Mitsubishi Fuso products in the future.

The newsletter also reveals the thinking behind naming car models in Japan. More than 100,000 names have been trademarked adding to the challenge to those who must come up with new names. The underlying rule in Japan is that the name must appeal to customers, while also capturing the essence of the car.

  Other stories featured in today's newsletter include:

  * Sales in Japan's car market in the last fiscal year;
  * A review of Japan's sports car market;
  * Japanese automakers' investment in diesels;
  * The design of easy-to-recycle vehicles;
  * Nobel Prize-winning economist Joseph Stiglitz's remarks at the Annual
    JAMA Lecture on globalization at George Washington University.