Honda Cars : Ford Demands Ultimate Sacrifice From Japan: Kill Some Car Factories, Then We Talk | 2013 New Honda Car Reviews 0

Steve Biegun of FORD

By Bertel Schmitt
Imagine what happened if the representative of a large Japanese or Chinese car company would demand that America should close some car factories before easier access to foreign markets would be contemplated. All hell would break loose, and the Seventh Fleet would steam in the direction of the loose cannon – if it is not already there. What happens if the representative of Ford says that Japan should be required to reduce the size of its auto industry before being allowed into regional free trade talks with the United States and eight other countries in the Asia Pacific? Business as usual.


Steve Biegun, Ford’s vice president for international government affairs, showed symptoms of severe disorientation when he gave an interview to Reuters. Not only did the former foreign policy adviser to Sarah Palin require that Japan shutters some car plants before the country is admitted into the proposed Trans-Pacific Partnership (TPP) pact. Biegun also claims that Japan is “the most protected automotive market in the developed world.”

This is a perplexing claim. The U.S. has one of the lowest tariffs on auto imports, 2.5 percent. It is outdone by Japan, which has the world’s lowest tariff: Zero.
Says Reuters:

 “But Ford contends the Japanese government maintains a number of regulatory and other “non-tariff barriers” to keep out most foreign cars and also intervenes heavily in currency markets to help its auto companies export cars.”

William Duncan, director of the Japanese Automobile Manufacturers Association’s office in Washington, says Biegun’s arguments are “rather bizarre,” and I agree.

Biegun’s claim that Japan manipulates its currency must be based on hallucinations, or drugs that trigger same. A look at a chart shows that the Japanese Yen is close to its all-time-high against the dollar, a fact that shunts Japanese exports more effectively than any trade policy. Claims that Japan manipulates its currency usually trigger a psychiatric evaluation, but don’t seem to be out of character for a Sarah Palin advisor.

Biegun repeats the old “non-tariff-barrier” talking points, but cannot name specifics. On that, Biegun and his colleagues are sitting in the glass house.  The U.S. market is surrounded by one of the highest non-tariff barriers in the world, the Federal Motor Vehicle Safety Standards, which are largely incompatible with the rest of the world that is more or less aligned behind UNECE standards or is derivatives.

A large part of the American cars that come into Japan don’t even have to adhere to Japan’s standard type approval. They are coming in under the Preferential Handling Procedure (PHP), a certification option for low-volume imported vehicles of less than 2,000 vehicles per vehicle type.  Under this procedure, cars can be brought into Japan with minimum paperwork, not even a test vehicle is required. Successful importers to Japan, such as Volkswagen, BMW or Daimler, have to contend with much more red tape than the Detroit whiners.

The Preferential Handling Procedure was,  says the Japanese manufacturer association JAMA, established in “1986 at the request of the United States Government to ease the burden on importers.”  The U.S. did not reciprocate and provides no such loophole for small volume imports.

Most of all, half of America’s automobile market, and the most profitable half, is surrounded by a tariff barrier as formidable  as the Chinese Wall: Since the early 60s, there is a 25 percent tariff on light trucks imported to the U.S., which pretty much stopped imports of light trucks to the U.S.

One continues to wonder what makes Ford and its Detroit friends resort to lies and distortions. More than 70 percent of all Japanese cars sold in the U.S. are already made there. With the yen being obscenely high (Sarah Palin won’t know, she rarely travels), exports from Japan get smaller by the day.

The moaning about being shut out of the Japanese market is ridiculous. American cars are largely unsalable in Japan. They are doing worse in Europe. GM exported a total of 109 cars from the US to Europe in the first three months of 2012, says ACEA. In the same period, GM exported 819 cars to Japan, says the Japan Automobile Importers Association.

Observers are scratching their heads when the U.S. car industry is going into hysterics about Japan and the TPP. Japan’s high yen is a much more formidable barrier to entry than  America’s 2.5 percent duty. Two possibilities:  Detroit wants to maintain the chicken tax. A silly exercise, given that even made-in-the-U.S.A. Japanese trucks are not taking the world by storm. Or, more plausible, the U.S. wants to keep Japan at a disadvantage when it comes to the emerging markets that are part of the TPP.

Source (via www.autoblog.com);
http://www.thetruthaboutcars.com/2012/05/ford-demands-ultimate-sacrifice-from-japan-kill-some-car-factories-then-we-talk/

Honda Cars : Struggling Mazda Looking for News Partners | 2013 New Honda Car Reviews 0

By Nat Shirley
Thursday, Feb 9th, 2012 @ 10:17 am
Facing what will likely be its fourth straight year of financial losses, Mazda is seeking partners to share development and manufacturing costs as the company tries to return to profitability.

Mazda CEO Takashi Yamanouchi says the company is “actively” seeking partners and is “considering every option” in an attempt to raise more capital to stave off a possible downgrade to its credit rating, Automotive News reports. Mazda has forecast a net loss of $1.29 billion for the fiscal year ending March 31, which would represent the automaker’s worst financial showing in 11 years.
Mazda’s struggles are partially attributable to the continued strength of the yen – Mazda exports a greater percentage of its vehicles from Japan than any other automaker, meaning more of its sales result in slim profit margins because of the unfriendly home currency. Another issue lies with several weak-selling products – in America, Madza’s entrants in the all-import midsize sedan and small crossover segments, the Mazda6 and Tribute/CX-7, have largely been sales disappointments.
Still, there is plenty of potential for the Zoom-Zoom automaker to return to financial health. The company is building a plant in Mexico to counter the strength of the yen, and its sales fortunes could soon improve with the launch of the new CX-5 crossover and as its fuel-efficient SkyActiv technology continues to spread throughout the model range.
A partner to help defray costs would also be an asset – Mazda has been going it alone since former partner Ford sold its shares in the Japanese automaker over the past few years.

Source;

http://www.leftlanenews.com/struggling-mazda-looking-for-partners.html

Honda Cars : Honda says studying shift overseas to avoid yen effect | 2013 New Honda Car Reviews 0

* Working under assumption of 80 yen to dollar over next 3 years

* Exports from Japan unsustainable at current dollar-yen rate -CFO

* Discussion of shifting output to continue until last minute -CFO

* Not optimistic that yen will weaken -CFO

* Honda move could put pressure on Toyota, Nissan (Adds details)

By Chang-Ran Kim, Asia autos correspondent



TOKYO, Aug 9 (Reuters) - Honda Motor Co is studying possible production bases overseas to replace export-bound car production in Japan that has been battered by a strong yen, a top executive said on Tuesday.

Japanese auto executives have repeatedly warned that the yen had strengthened beyond what domestic exporters could cope with, but Honda Chief Financial Officer Fumihiko Ike's comment was the first indication so far that any concrete steps are being considered to reduce output in Japan.

"We currently have a three-year plan under which we are assuming a rate of 80 yen to the dollar," Ike told a small group of reporters at Honda's headquarters in Tokyo.

"And under that assumption, the discussion to look for an alternative production base is inevitable."

Ike tempered his comments by stressing that jobs in Japan needed to be protected, and that the discussion would continue right up to the point when the board makes a formal decision, taking into account exchange rates at that time.

But he said he was not necessarily optimistic that the yen would weaken, and that Honda was bracing itself for further appreciation towards 70 yen to the dollar after Japan's solo intervention last week did little to stem the dollar's fall. The U.S. currency was fetching around 77.00 yen on Tuesday.

"Protecting Japanese manufacturing and building cars here is becoming more and more difficult," Ike said. "We can keep the technology here, but if we were to build cars in Japan, they may be good (quality) products but they would be too expensive. And an expensive product is not necessarily a good product."

EXPORT EXPOSURE

Among Japan's top automakers, third-ranked Honda is the least exposed to excessive domestic production, exporting just 30 percent of its Japan-made cars last year. Toyota Motor Corp exported 53 percent, while Nissan Motor Co shipped 59 percent.

All three automakers have a basic strategy of creating a natural hedge against currency swings by producing as many cars as they can where they are sold. But for smaller markets where demand is insufficient to build a factory, production has been concentrated in Japan.

"At these exchange rates we lose competitiveness on these exports, and that leads to a fall in sales, triggering a vicious cycle," Ike said. "And when that happens, the natural consequence is for that production (in Japan) to disappear."

Ike said Honda had already gone down that path with motorcycles, expanding production in India, Vietnam and Indonesia. Honda imports many motorcycles into Japan from Thailand and China.

If Honda takes a similar step with cars, it could put pressure on rivals Toyota and Nissan to do the same and lead to a hollowing out of Japanese manufacturing, one of the main drivers of the country's economy.

Toyota and Nissan have been more vocal than Honda about protecting domestic production, with Toyota pledging 3 million vehicles a year of output in Japan and Nissan pledging 1 million.

Nissan said this week it plans to boost its sales in the shrinking Japanese market to keep the 1 million annual production target as it shifts more export-bound output overseas.

"Car makers are trying hard to cut costs to absorb the currency impact, but there's a limit to the speed and scope of what they can achieve," said Credit Suisse auto analyst Issei Takahashi.

"Even if they build a lot in Japan, if they lose money by doing so they won't be able to protect jobs. I think it's inevitable that some production shifts overseas." (Editing by Edmund Klamann)

Source;

http://www.reuters.com/article/2011/08/09/honda-idUSL3E7J922O20110809

Honda Cars : Honda puts Honda FIT Shuttle intro on hold | 2013 New Honda Car Reviews 0

Not for the North American market....
The devastating earthquake and its aftermath in Japan have forced Honda to postpone the market launch of its new Fit Shuttle. The introduction of the car in Japan was scheduled to take place this month. Honda said it has not yet decided on a new release date and that the company will follow up with an announcement with more details soon.

The new Fit Shuttle is approximately 510mm longer than the hatchback, which is also known as the Jazz in Europe and other international markets. In Japan, it will be offered with a similar engine lineup to the hatchback model including a conventional 1.5-liter four-cylinder gasoline engine and a hybrid variant featuring a 1.3-liter gasoline unit and a 10 KW electric motor.

Suggested retail prices in Japan will start from 1.61 million Yen (about US$13,900) for the gasoline engine only model and from 1.81 million Yen (US$15,800) for the hybrid variant.

Source;

http://carscoop.blogspot.com/2011/03/honda-postpones-launch-of-fit-shuttle.html

Honda Cars : Japan to sell fuel cell cars in 2015 | 2013 New Honda Car Reviews 0

-100 refuelling stations by 2015
-Four areas in Japan to benefit
-Progress is being made in Europe, too

Sales of hydrogen fuel cell cars will kick off Japan in 2015, car manufacturers and hydrogen suppliers jointly announced recently.

Although numbers of vehicles have not been discussed, the partnership of Honda, Nissan and Toyota said 2015 would mark the start of 'mass production' of fuel cells.

Hydrogen suppliers have committed to establishing a network of 100 refuelling stations in Japan to serve the cars.

Japan's Ministry of Economy, Trade and Industry said it would support the expansion of the hydrogen network.

Work is also underway on developing fuel cells and hydrogen refuelling in Europe. There are already a chain of refuelling points along the HyNor 'hydrogen highway' in Norway, between Oslo and Stavanger.

Mercedes is already trialing fuel-cell versions of the B-Class, while Kia and General Motors have both said they will sell 10,000 fuel cell vehicles each by 2015.

Source;
http://www.whatcar.com/car-news/japan-to-sell-fuel-cell-cars-in-2015/254919

Honda Cars : Japan eyes oil refineries as a source of hydrogen for vehicles | 2013 New Honda Car Reviews 0

Nikkei, a Japanese news outlet, reports that Japan's government is expected to launch a public-private initiative aimed at developing technology that will allow hydrogen that is currently utilized in the oil refining process to be manipulated into a source of power for fuel-cell vehicles. Japan's Ministry of Economy, Trade and Industry (METI) is seeking a secure and readily available supply of hydrogen and believes that high-purity H2 can be obtained from oil refineries that are scattered across the island nation. However, hydrogen used in fuel-cell vehicles typically needs to be 99.99 pure, whereas the H2 that could come from the oil refining industry in this way has significantly more impurities.

METI, along with many unlisted collaborative partners, hopes to develop technology that can extract high-purity hydrogen from the less-than-pure H2 used in oil refining. The project is estimated to cost 500 million yen ($6.2 million U.S. at the current exchange rate) and should be completed by the end of 2014. METI is willing to dish out enough money to cover half of the program's total costs. Hat tip to Roy!

Source;
http://green.autoblog.com/2011/01/04/japan-eyes-oil-refineries-as-a-source-of-hydrogen-for-vehicles/

Honda Cars : Honda Says It Isn’t Planning U.S. Asset-Backed Security Sale | 2013 New Honda Car Reviews 0

March 6 (Bloomberg) -- Honda Motor Co. said it doesn’t plan to issue new securities backed by auto loans after a Japanese news agency reported that the carmaker’s U.S. credit arm seeks to raise about $1 billion every few months from such sales.

Japan’s Nikkei English News said today that Honda’s American Honda Finance Corp. would regularly issue 100 billion yen ($1.02 billion) of asset-backed bonds, citing no sources. Nissan Motor Co.’s U.S. finance arm plans to raise a similar amount with ABS issues, Nikkei said.

“We aren’t currently issuing asset-backed securities,” said Marcos Frommer, a spokesman for Honda’s U.S. unit in Torrance, California. Economic conditions don’t favor such sales, he said.
Fred Standish, a spokesman for Nissan’s U.S. unit, said the company doesn’t discuss future financing options such as ABS sales. Nissan raised $475 million from an ABS sale in December, he said.

Honda and Nissan are both based in Tokyo.

Source;
http://www.bloomberg.com/apps/news?pid=20601101&sid=ap5LWT7nHhZE&refer=japan#