Japanese auto production down, exports up

Auto sales and production continue to slip in Japan, according to April figures released by the Japanese Auto Manufacturers Association (JAMA).  The data, which show a 3.8 percent decline in Japanese production and an 8.7 percent decline in Japanese sales, reinforce the importance of the North American auto market for Toyota, Honda and Nissan.

While sales and production are dropping in Japan, export of cars, trucks and busses from Japan to other countries rose by 2.3 percent, the 21st consecutive monthly increase.

For Toyota, Japan’s leading auto manufacturer, the U.S. market accounted for 28.9 percent of total sales in 2006.  The company sold 2.5 million vehicles in the U.S. that year, but just 1.7 million in Japan.

The strength of the U.S. market for Toyota and other Japanese companies means that these firms rely more than ever on their U.S. plants – and U.S. workers – to help them build quality vehicles and earn profits for their shareholders.

Sales are down, but bonuses are up for workers at Toyota Japan

Toyota has agreed to give bigger bonuses to unionized Toyota workers in Japan, despite falling sales of Toyota vehicles in Japan. Toyota’s Japanese union members will take home a record $21,964 each in bonuses this year. Toyota has no problem negotiating compensation with representatives  elected by workers in Japan, and never calls the Japan Auto Workers (JAW) union a “third party.”  Why are workers in the United States treated differently?

Automakers join forces to fight unworkable rules on fuel economy

When it comes to competing for sales and market share, auto companies based in the United States, Japan and Europe are often on opposite sides of the fence.

But there’s one issue that automakers on all three continents agree on:  Extreme proposals to impose unworkable regulations on the auto industry would lead to higher prices and less safe vehicles.

The Alliance of Automobile Manufacturers, which includes eight global auto firms, is running print and radio ads warning consumers about the negative impact of plans to dramatically increase fuel economy standards, which are technologically unworkable and will limit consumer choice.

Alliance members include BMW, Chrysler, Ford, General Motors, Porsche, Toyota and Volkswagen of America.  The organization has established a Web site, www.drivecongress.com, to assist consumers who want to communicate with legislators on this issue.

Big Three dilemma:  Dealers, not unions

The challenges facing Detroit automakers are being felt in auto dealerships throughout the United States through lower sales.  But the dealers say it’s not union wages and benefits that are hurting their bottom lines, it’s too many dealerships competing for fewer customers in an outdated dealer system constructed during the Big Three’s sales heyday. “It’s not unions; it’s not pensions,” Frank Ursomarso, a mega-dealer based in Delaware told the Detroit Free Press.  “It’s their failure to understand the franchise part of the business.”   Industry experts say roughly 20 percent of domestic auto dealerships aren’t needed, which hurts automakers’ sales to the tune of $4 billion a year.