Japanese Automakers step up assault on Europe
09-28-04, 05:41 AM
#1
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Japanese Automakers step up assault on Europe
Keizo Matsuzaki and Takao Kuroi / Yomiuri Shimbun Staff Writers
Japanese automakers are stepping up their assault on the European market.
Thanks mainly to the expansion of local production and stronger lineups of the diesel cars that are popular in Europe, the market share of Japanese automakers has been rising for the past three years and is this year expected to top 13 percent.
At the 2004 Paris Motor Show, which opened to the public Saturday, Nissan Motor Co. unveiled the Tone--a family-oriented compact car--and six other new models that will hit the European market in 2005 and 2006. The Tone model is sold under the name Note in Japan.
Nissan Motor Executive Vice President Patrick Pelta, who is in charge of the company's European operations, said at a press conference that Nissan's new lineup was unprecedentedly ambitious.
Honda Motor Co., meanwhile, unveiled its new FR-V minivan, known as the Edix in Japan, and a diesel version of its CR-V sport-utility vehicle. Targeting sales of 280,000 units in the European market in 2005, Honda Motor Director Shigeru Takagi said 300,000 units was an achievable target.
Toyota Motor Corp. is not showing new models at the show, but gave the impression it was enjoying good business in the European market when it revised upward Wednesday its target for sales in Europe next year from 860,000 to more than 900,000.
Even Mitsubishi Motors Corp., which has been hit by a slump in sales in the Japanese market, is expected to meet its sales target for Europe in fiscal 2004. "Sales in this market are expected to hit 260,000 units--an increase of 21.4 percent from fiscal 2003," said MMC Managing Director Osamu Masuko.
13% market share and rising
According to the European Automobile Manufacturers Association, Japanese carmakers had a total market share of 13.2 percent in 18 Western European countries during January and August, beating the 12.7 percent share in the same period last year and marking the highest figure in 13 years.
Toyota held onto top spot among Japanese carmakers with a market share of 5 percent--close behind German auto giant DaimlerChrysler AG.
The robust sales by the Japanese automakers are believed to have been supported by their growing local manufacturing capacity. Japanese carmakers have been focusing on local production to avert 10 percent tariffs imposed on cars exported to EU countries from non-EU members.
Toyota, which began car production in France in 2001, will start manufacturing cars in the Czech Republic in 2005 in a joint venture with PSA Peugeot Citroen.
Nissan produces about 80 percent of the cars it sells in Europe at EU plants.
Japanese carmakers also are active in producing diesel-powered vehicles that are popular among environment-conscious Europeans.
Starting in 2005, Toyota will mass-produce new diesel engines in Poland for use in the company's midsize Avensis model.
Honda, which started installing diesel engines in its Accord cars at the end of 2003, is planning to boost the ratio of diesel-powered vehicles it sells in Europe to more than 40 percent from about 15 percent now.
"We're targeting sales of 1.2 million diesel-powered vehicles in 2010," Toyota Motor Executive Director Tokuichi Uranishi said. "We also want to strengthen sales of our gasoline-electric hybrid cars which are currently less known in Europe."
Differing strategies
There are differences, however, among the Japanese automakers in terms of future business strategies. Toyota is focusing on expanding its European market share, while Nissan and Honda are aiming at improved profitability.
Despite the low profit margin on compact cars, Toyota is aiming at improving cost-efficiency through increased sales of such models, banking on high sales volumes. But Nissan and other automakers are focusing on sport-utility and other vehicles that have high profit margins and that are less of a specialty for European automakers.
Differences between Toyota and other Japanese automakers are becoming clear. The former is making a real challenge in the European market--the world's most competitive--while the latter are giving priority to the faster-growing Asian market and North America, the world's largest market.
German firms in trouble
European automakers, meanwhile, have experienced difficulties as a result of the surge by Japanese manufacturers.
The January-August sales share of Volkswagen AG of Germany, the largest European carmaker, fell to 17.7 percent from 18.1 percent in the same period last year. France's PSA--Europe's second-largest carmaker--saw its market share dwindle to 14.5 percent from 15.3 percent.
German automakers in particular are having a hard time.
Volkswagen's net profit during the January-June period fell 35.7 percent from the same period last year, obliging the firm to propose cutting wages of factory employees in West Germany by 30 percent by 2011.
DaimlerChrysler also has agreed with its labor union to freeze pay rises for the time being.
German automakers are trying hard to win back market share by offering air conditioning and other options at no extra cost. So far, however, their sales have refused to rise, however.
source HERE
Japanese automakers are stepping up their assault on the European market.
Thanks mainly to the expansion of local production and stronger lineups of the diesel cars that are popular in Europe, the market share of Japanese automakers has been rising for the past three years and is this year expected to top 13 percent.
At the 2004 Paris Motor Show, which opened to the public Saturday, Nissan Motor Co. unveiled the Tone--a family-oriented compact car--and six other new models that will hit the European market in 2005 and 2006. The Tone model is sold under the name Note in Japan.
Nissan Motor Executive Vice President Patrick Pelta, who is in charge of the company's European operations, said at a press conference that Nissan's new lineup was unprecedentedly ambitious.
Honda Motor Co., meanwhile, unveiled its new FR-V minivan, known as the Edix in Japan, and a diesel version of its CR-V sport-utility vehicle. Targeting sales of 280,000 units in the European market in 2005, Honda Motor Director Shigeru Takagi said 300,000 units was an achievable target.
Toyota Motor Corp. is not showing new models at the show, but gave the impression it was enjoying good business in the European market when it revised upward Wednesday its target for sales in Europe next year from 860,000 to more than 900,000.
Even Mitsubishi Motors Corp., which has been hit by a slump in sales in the Japanese market, is expected to meet its sales target for Europe in fiscal 2004. "Sales in this market are expected to hit 260,000 units--an increase of 21.4 percent from fiscal 2003," said MMC Managing Director Osamu Masuko.
13% market share and rising
According to the European Automobile Manufacturers Association, Japanese carmakers had a total market share of 13.2 percent in 18 Western European countries during January and August, beating the 12.7 percent share in the same period last year and marking the highest figure in 13 years.
Toyota held onto top spot among Japanese carmakers with a market share of 5 percent--close behind German auto giant DaimlerChrysler AG.
The robust sales by the Japanese automakers are believed to have been supported by their growing local manufacturing capacity. Japanese carmakers have been focusing on local production to avert 10 percent tariffs imposed on cars exported to EU countries from non-EU members.
Toyota, which began car production in France in 2001, will start manufacturing cars in the Czech Republic in 2005 in a joint venture with PSA Peugeot Citroen.
Nissan produces about 80 percent of the cars it sells in Europe at EU plants.
Japanese carmakers also are active in producing diesel-powered vehicles that are popular among environment-conscious Europeans.
Starting in 2005, Toyota will mass-produce new diesel engines in Poland for use in the company's midsize Avensis model.
Honda, which started installing diesel engines in its Accord cars at the end of 2003, is planning to boost the ratio of diesel-powered vehicles it sells in Europe to more than 40 percent from about 15 percent now.
"We're targeting sales of 1.2 million diesel-powered vehicles in 2010," Toyota Motor Executive Director Tokuichi Uranishi said. "We also want to strengthen sales of our gasoline-electric hybrid cars which are currently less known in Europe."
Differing strategies
There are differences, however, among the Japanese automakers in terms of future business strategies. Toyota is focusing on expanding its European market share, while Nissan and Honda are aiming at improved profitability.
Despite the low profit margin on compact cars, Toyota is aiming at improving cost-efficiency through increased sales of such models, banking on high sales volumes. But Nissan and other automakers are focusing on sport-utility and other vehicles that have high profit margins and that are less of a specialty for European automakers.
Differences between Toyota and other Japanese automakers are becoming clear. The former is making a real challenge in the European market--the world's most competitive--while the latter are giving priority to the faster-growing Asian market and North America, the world's largest market.
German firms in trouble
European automakers, meanwhile, have experienced difficulties as a result of the surge by Japanese manufacturers.
The January-August sales share of Volkswagen AG of Germany, the largest European carmaker, fell to 17.7 percent from 18.1 percent in the same period last year. France's PSA--Europe's second-largest carmaker--saw its market share dwindle to 14.5 percent from 15.3 percent.
German automakers in particular are having a hard time.
Volkswagen's net profit during the January-June period fell 35.7 percent from the same period last year, obliging the firm to propose cutting wages of factory employees in West Germany by 30 percent by 2011.
DaimlerChrysler also has agreed with its labor union to freeze pay rises for the time being.
German automakers are trying hard to win back market share by offering air conditioning and other options at no extra cost. So far, however, their sales have refused to rise, however.
source HERE
09-28-04, 09:30 AM
#3
Lexus Fanatic
Re: Japanese Automakers step up assault on Europe
Originally posted by SexySC
[German automakers are trying hard to win back market share by offering air conditioning and other options at no extra cost. So far, however, their sales have refused to rise, however.
source HERE [/B]
[German automakers are trying hard to win back market share by offering air conditioning and other options at no extra cost. So far, however, their sales have refused to rise, however.
source HERE [/B]
THIS is the root cause of the German car problems.....quality, not content.
09-28-04, 10:19 AM
#4
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Posts: n/a
[QUOTEThere are differences, however, among the Japanese automakers in terms of future business strategies. Toyota is focusing on expanding its European market share, while Nissan and Honda are aiming at improved profitability.
Despite the low profit margin on compact cars, Toyota is aiming at improving cost-efficiency through increased sales of such models, banking on high sales volumes. But Nissan and other automakers are focusing on sport-utility and other vehicles that have high profit margins and that are less of a specialty for European automakers.
Differences between Toyota and other Japanese automakers are becoming clear. The former is making a real challenge in the European market--the world's most competitive--while the latter are giving priority to the faster-growing Asian market and North America, the world's largest market. [/QUOTE]
Again, Toyota just is on some other stuff. I am sure long-term, it means great success. Nissan can't see 5 days ahead of them and Honda refuses to acknowledge any other way but theirs.
Despite the low profit margin on compact cars, Toyota is aiming at improving cost-efficiency through increased sales of such models, banking on high sales volumes. But Nissan and other automakers are focusing on sport-utility and other vehicles that have high profit margins and that are less of a specialty for European automakers.
Differences between Toyota and other Japanese automakers are becoming clear. The former is making a real challenge in the European market--the world's most competitive--while the latter are giving priority to the faster-growing Asian market and North America, the world's largest market. [/QUOTE]
Again, Toyota just is on some other stuff. I am sure long-term, it means great success. Nissan can't see 5 days ahead of them and Honda refuses to acknowledge any other way but theirs.
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