Japan makes gains in U.S. auto market
By Yuri Kageyama
Associated Press
CHIBA, Japan — Japanese automakers are showing off a lot more at the Tokyo auto show than their American rivals, a domination that underlines the industry's biggest share ever of the U.S. market.
While Japan's carmakers each unveiled several new cars to packed crowds at the show's opening for reporters Wednesday, some seats were empty at General Motors Corp.'s presentation, which centered around one car, the Chevrolet Cruze.
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Granted, Japanese automakers have the hometown advantage at the Tokyo Motor Show, which opens to the public tomorrow in this suburban town.
But in years past, it's been the American companies that have put on a more lively show.
The powerful presence of the Japanese reflects the advances they're making despite the global economic slowdown since the Sept. 11 attacks.
Analysts said Toyota Motor Corp., Honda Motor Co. and other Japanese companies are showing more resilience and selling power in the United States.
The U.S. market share of the five main Japanese automakers has risen steadily, hitting 24.7 percent this year, the highest since it reached 23.8 percent in 1991.
At the same time, market share for General Motors, Ford Motor Co. and DaimlerChrysler has dropped from a combined 70.5 percent 10 years ago to 63.1 percent, according to Goldman Sachs.
"Are we concerned with losing market share in the U.S. market?" said GM chairman Jack Smith in Tokyo for the auto show. "Yes, we are. We have to work very hard to offset that."
Auto sales in the United States in September were down 9 percent from the same month a year ago, although sales are picking up after GM and other automakers started offering no-interest financing.
Toyota is offering zero-interest programs on some of its models, but Honda has managed to record double-digit growth so far this month without it.
"It's not that we're afraid of selling too much," Honda president Hiroyuki Yoshino said. "It's just that we don't need to do it to sell our cars."
The consequences remain unclear and the equation is clearly unbalanced as far as market share for the Americans in Japan.
Battling an enormous image problem to woo Japanese buyers, U.S.-made cars comprise barely 1 percent of Japan's auto market. Toyota controls about 40 percent.
The United States and Japan recently agreed to replace a 1995 auto trade pact with regular consultations on efforts to boost sales of U.S.-made autos and auto parts in Japan. The first meeting is set for early next year.
When asked what he wanted from the talks, Smith said, "Start talking."
Some analysts said the days of Japan bashing, so prevalent during the '80s and '90s, are over.
At a time when patriotic feelings are running high in the United States, there is a slight possibility the Japanese may again be forced to start restricting exports to the United States, said Koji Endo, head of equity research at Credit Suisse First Boston Securities in Tokyo.
"When it comes to auto-related issues, it's not a logical issue. It's an emotional issue," Endo said.
