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Japan Is The World's #1 Automaker: How Does This Sit With You?

Agent009 submitted on 07/02/2007 Official AutoSpies Timestamp: 10:27 AM
from: www.cnbc.com

[67] user comments | category: Misc News

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Japan Is The World's #1 Automaker: How Does This Sit With You?

The headline this morning from Automotive News is hardly surprising, but it is another reminder of how the U.S. Auto industry has changed dramatically in recent years.

The latest data shows Japan surpassed the U.S. last year to become the world's #1 vehicle producer. It's the first time in 12 years Japan has outpaced the U.S. Not only that, but the Asian country is on track this year to expand its lead.

I can see the e-mails already from those of you who think I'm writing this to bash the Big 3 and the struggles they have and are facing--while cutting more than 80,000 blue collar jobs. Sorry folks, I'm not bashing Detroit. I'm simply stating the facts that should make Americans wake up and realize we are in a global economy, where cost wise it's cheaper for companies (including the Japanese at home) to build vehicles outside the states.

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w209w114 - 7/2/2007 10:33:34 AMView My AgentSpace

+3 Boost

This is true. They are the #1 automaker with very competitive products

HOWEVER, this doesnt mean they make the #1 cars

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printhan - 7/2/2007 11:02:57 AM

+1 Boost

A VERY TRUE FACT!

Designer1 - 7/2/2007 12:50:51 PM

-4 Boost

Any #1 product is the one that lasts longer, if the Japanese cars lack a bit of sporty feelings, then the heck with that when they're on top of quality, reliability and safety. So that makes the OTHERS definitly NOT # 1, i.e. the Germens, cause all they top with is the sporty driving and they're always behind with the quality, reliability and equal or not as good in safety.

So this does make the Japanese cars #1.

Agent004 - 7/2/2007 12:52:44 PMView My AgentSpace

-3 Boost

Exactly - Quantity != Quality

Willis - 7/3/2007 7:14:26 AM

+3 Boost

Designer1,

The Germans are also leaders in safety and quality and their reliability is improving. Cut the trolling already.

Htay7500 - 7/2/2007 11:27:27 AM

+4 Boost

how is it junk if you never owned one?

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Htay7500 - 7/2/2007 11:40:08 AM

+1 Boost

would I worry if I was an american? no, because I need something tht benefits my needs like, quality, reliability, low maintenence, history and reputation, ownership, testdrive, etc. not because of where its from. I really don't care about the car industry.

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LexusLunatic - 7/2/2007 5:40:35 PM

0 Boost

funny how many of us live in america ..

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Htay7500 - 7/2/2007 8:53:45 PM

0 Boost

"How can Japanese vehicles be junk if you have never own one??? STFU already, you're making Americans look stupid with your ignorant comments." me?

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adoptgreyhounds - 7/2/2007 9:09:33 PM

0 Boost

e90- from a multi BMW owner to a new one wait till your fuel pump, turbos, window switch, radio, door locks, HVAC or many other items fail. As you should know BMW is the best everyday sports salooncoupe but not the most reliable.
Enjoy the 335i. I hope you drive it the way it's designed smart, safe, curtious, and fast in that order.

You should go to Spartenburg for the driving schools, best time outside Euro-delivery.

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nozferatu - 7/2/2007 11:20:48 PM

0 Boost

SPEND LESS ON WARS AND YOU MAY HAVE A CHANCE TO MAKE DECENT CARS AND HAVE A BETTER QUALITY COUNTRY TO BOOT.

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sold2early - 7/2/2007 10:55:28 AM

+8 Boost

That sits just fine with me. Like the article said, if we can't compete in the global economy with quality products that people want to buy, then we deserve to lose...even if it's partly because playing field isn't level.

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jon21 - 7/2/2007 11:00:20 AM

+3 Boost

No problem with me.

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Htay7500 - 7/2/2007 11:21:15 AM

+3 Boost

doesnt bother me, the term "buy american" does.

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ctsang - 7/2/2007 11:23:24 AM

+8 Boost

who cares where it is made as long as it is good.

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Caddyman07 - 7/2/2007 1:00:14 PM

+3 Boost

DITTO

Htay7500 - 7/2/2007 1:21:07 PM

+3 Boost

second tht.

Neverfollow - 7/2/2007 11:56:58 AM

+4 Boost

Just because Walmart is the number one retail chain in the world doesn't mean it sells the best products.

Just goes to show that most people are NOT car enthusiasts. Most seek an appliance to get them from point A to B with very little excitement. I'm just glad that there are still cars made for us passionate few "gear heads" left in the world.

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EL34 - 7/2/2007 12:06:37 PM

+2 Boost

Civics and Camrys.

Yawn.

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no1listensanyway - 7/2/2007 12:13:24 PMView My AgentSpace

0 Boost

I have mixed feelings about this one. I used to be a huge Japanese car fan for whatever reason. When I was younger, I worked at a GMC/Pontiac dealer for awhile and drove so many different cars and trucks. Even though the materials in the GM cars were inferior to the Japanese cars, they still had a lot more character and honeslty were just as reliable. Japanese cars have their problems too, they are just not publicized like the american cars. Anyway, I leased an 06' Cadillac CTS last summer and have had only good times with it. Im am also very much looking foward to the 08' model.

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unimog - 7/2/2007 12:45:04 PM

0 Boost

we got other problems to take care of - China! Watch how they slowly start getting aggressive against us. Japan is an ally and will be a close one in terms of containing China.

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aerith604 - 7/2/2007 1:08:51 PM

-1 Boost

Contain China? How can you? Considering the receeding economy of the US. No one can stop China. They have more buying power, they have more money, there is nothing the American can do about it. In 10 years time, China is going to be the strongest world power; doesn't matter if you guys like it or not. They have a larger army, they spend more on military, so you can't just "protect" the world against their "WMDs."

Their cars suck now, but Hyundais were pieces of crap 15 years ago. Look at the Chinese Buick branch, they arguably produce the best Buicks and are light years ahead of the 'american' buick branch.

cdoke - 7/2/2007 1:32:01 PMView My AgentSpace

0 Boost

You need to actually look up your information.

"they spend more on military" Not even close.

U.S. Military expenditures: (2004) $466 billion

The rest of the world combined: excludes U.S. (2004) $500 billion

China (2004): $65 billion.

Agent63 - 7/2/2007 5:54:01 PMView My AgentSpace

-1 Boost

China has no enemies like the US so why spend more on military when they concentrate more on economy. Have you been to their city's? Shanghai & Beijing to name a few. They are rich.

Rupert - 7/2/2007 6:45:27 PMView My AgentSpace

0 Boost

cdoke that saying is hilarious.

American wives and english food ugh.

cdoke - 7/2/2007 1:23:13 PMView My AgentSpace

+1 Boost

Despite the fact that your message seems paranoid, you have a very important point. In fact, it made me remember something from a few years ago.

When I first heard what I am about to tell you, I didn't believe it. The original source that I obtained the information from is 100% reputable and would know. I later heard the same again whilst doing my foreign area study for China.

The Chinese military has an exercise that certain branches of their military perform that is very much like what was going on during the cold war. This exercise is to calculate the amount of time it would take an ICBM to be launched from a certain base in China to hit Washington D.C.

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izfuney - 7/2/2007 3:19:12 PM

0 Boost

Interesting remark !! Something i agree with whole heartedly. China is the rising draqon. One only has to go to Asia to understand its effects. For instance, Japan's biggest trading partner ? China. The U.S.'s biggest trading partner - China . India's (cause its another rising power -albeit not in the same ball park as China) - China.
Japan for all its efforts is now a permanently check mated by the rise of China.
The question to ask is .. is the rise of China bad for the U.S ? IMHO - no, infact the wealth it has generated in this country is amazing.
However, Geopolitical discussions are for another forum.

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cdoke - 7/2/2007 4:47:31 PMView My AgentSpace

0 Boost

"The U.S.'s biggest trading partner - China "

...You may want to check that- It is actually Canada. That is recent as of April of this year.

Agent63 - 7/2/2007 5:52:15 PMView My AgentSpace

-1 Boost

Something wrong with Chinese people making products? I'm Chinese. The people in my motherland charge cheap labor and any real business people would know cheap labor with satisfactory quality control = profitable product.

I live in Canada but I see many products made in China sold in the United States as well. So I don't see why you're targeting Canada only. You generalize it as if everything is made there. You guys should check the labels on some of your brand name clothing. Another thing is you would be surprised how many companies relabel their clothing or products after it arrives in North American soil.

cdoke - 7/2/2007 6:35:42 PMView My AgentSpace

0 Boost

"So I don't see why you're targeting Canada only. You generalize it as if everything is made there."

Canada only came into the conversation because someone mentioned that China was the largest trading partner of the United States. That is simply wrong. This information is on the U.S. Census website. China dips to 3rd in March of this year in fact, behind Canada and Mexico.

Having said that I know where most of the stuff I buy comes from, or at least the major stuff. I do acutally pay attention to it. Most of my clothes are Italian, some are American [primarily Jeans]. Whe I say Italian I don't mean Italian label made elsewhere such as "Armani Exchange" that cheap garish brand for the nouveau riche that has the word "Armani" plastered all over it. I mean real Armani like Armani Collezioni. All of my furniture is American- Henredon and Karges. Karges, which I am sure few have heard of, is very nice (You will pay about $13,500 for a nightstand) but it also happens to be handmade, and each piece is the work of a single person which I really like.

This reminds me of that joke, by an Enlishman...

Heaven is an English House, an American salary, a Chinese cook and a Japanese wife...

Hell is a Japanese house, a Chinese salary, and English cook and an American wife...

I believe that is how it goes...yes...

Rupert - 7/2/2007 6:46:22 PMView My AgentSpace

+1 Boost

cdoke that saying is hilarious

American wives and English food...what's the point in living? :P

Will_ - 7/2/2007 4:11:37 PM

+2 Boost

I think it is an amazing feat that the Japanese have been able to find what American consumers want in an automobile and perfect it to a tee.

And this "doesn't mean their products are #1" comments are hilarious. THAT"S EXACTLY WHAT IT MEANS! Walmart comparisons end now. Walmart sells millions of DIFFERENT products from many different distributors and suppliers. TOYOTA and HONDA make, market and sell their own products under one producer and supplier: themselves.

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Agent009 - 7/2/2007 4:49:33 PMView My AgentSpace

+1 Boost

LOL Consumer Reports and JD Power....

Htay7500 - 7/3/2007 10:22:09 AM

+2 Boost

never read consumer reports... but we buy japanese cars not from what magazines say, but trying it out and etc.

Htay7500 - 7/2/2007 4:50:16 PM

+2 Boost

"Japanese cars sell ONLY because they are cheaper." by cheaper? whats your point?

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Lexus - 7/2/2007 5:03:04 PM

+1 Boost

It is the fact so get use to it, like it or not...

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autopro - 7/2/2007 6:55:57 PMView My AgentSpace

+4 Boost

lexus and toyota cars are cheaper in price because the build so many they can lower their costs,german wages are much higher and they run the same risk as the american car companies. Unions and penions raised the prices of american cars so they had to reduce the quality of materials to compete.Every year the sales numbers show this.Numbers don't lie.Its happening slowly but its happening.In 10 years you'll see the difference.

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Qwazywabbit - 7/2/2007 7:23:38 PM

+4 Boost

It doesnt sit well with me at all. But I have to give kudos to the Japanese. They know what they are doing. They are goal oriented, disciplined, decisive, and tenacious. The Detroit 3 lost this about 30 years ago. They are a complete mess. Unfortunatly, I do not think they will ever get it back. They are now about 20 years behind the curve, and once you are that far behind, it is quite unlikely they can cover that ground back.

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EnnNorak - 7/2/2007 8:27:52 PM

+1 Boost

I guess Toyota can only go downhill from here. I still predict that GM will make a huge comeback if they do not repeat mistakes of the past.

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nozferatu - 7/2/2007 11:24:20 PM

-1 Boost

The only way GM will make a comeback is if Toyota helps it. Otherwise it's better if GM just dies...as with Ford.

Will_ - 7/3/2007 8:04:22 AM

+1 Boost

Lots of stupid German talking point responses. The Japanese don't have to prove that they are "better" than the Germans by making their products more expensive. I'll kill someone the day a Toyota Camry costs as much as an E-Class. All of you hollering about price why don't you ask yourselves why VW hasn't taken over the world yet? Oh that's right, their similarly-performing vehicles cost too much...

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kpaxx - 7/3/2007 9:25:38 AM

-1 Boost

The top selling cars are not always the best. Toyota proves this their cars are inferior in performance safety and now quality, but many of their cars are in the top ten sellers list. The reason for this has alot to do with price, marketing and perception.

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2JZSoarer - 7/3/2007 11:07:45 AM

+2 Boost

Vehicles made in the U.S.A,No thank you.I'm sorry to say it,but when it come to designing and building cars the U.S sucks...

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froggy780 - 7/3/2007 11:39:06 AM

+3 Boost

"And anyway since when you compare the cheap looking trash made by Toyota with the stylish and great handling cars made by VW? What car enthusiast would ever compare the excellent cars made by VW with the cheap appliances made by Toyota?"

Are you aware that VW has lately ( for a few years now) had quality control problems that surpass any Asian car band (even Hyundai). VW makes very nice looking cars but the point is that their quality has been struggling and their quite expensive compared to other cars in their class. In addition, the cost to repair VW's is very expensive compared to a Honda or Toyota (and parts may take loger to get). To top it off the Jetta and Beetle are not made in Germany but Mexico (I not being racist---I'M A MEXICAN MYSELF) which means that your not really getting that highly desired German craftsmanship. VW's have really unique and bold looking cars but they are NOT the most reliable or cheap to fix.
Yes, Toyota and Honda have been coming out with products that are questionably "boring" looking but they still sell and are a good value (they also have a good resale values). Toyota and Honda have had their issues with quality but you have to understand that when companies get big, it can be difficult to control quality. It also looks worse when they have quality control issues because it affects a larger number of cars because they produce so many compared to lower production car companies.

"The point is that quantity does not mean quality. Japanese products are cheaper therefore they appeal to a larger mass. If the Japanese makers want to prove that their cars are better they should price them similarly as the German rivals. "

What does this quote suppose to mean? Japanese cars are cheaper in quality than German cars. Umm, no. Most German cars have many costly faulty problems with their electronics. They come with with very creative and different things to put in their cars but when they break they are expensive to fix. For example, when BMW came out with their iDRIVE system it has issues of not being very user friendly---FOR CRYING OUT LOUD, YOU HAVE TO NAVIGATE WITH A ROUND JOYSTICK ON YOUR CENTER CONSOLE TO NAVIGATE THROUGH MENUS ON A SCREEN TO TURN THE DAMN AIR CONDITIONER ON. Why not just put button on your center console like most other car companies! Also, do you really need a fan built into your bottom seat to blow air up but--I'm not kidding the 7 series has this feature. Eventually they do fix these problems but what's the whole point. German car companies try too hard to add features and technology that are not always that great. Yeah, BMW has their 3 year preventive maintenance service (great marketing) but you keep that car after that service is over, you will probably pay through the nose for repairs when they happen. Overall, you probably will pay less in overall price for Lexus, Acura, Infiniti, etc.--including repairs. This is because Japanese car companies (and other Asian car compai

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froggy780 - 7/3/2007 11:42:15 AM

+3 Boost

German car companies try too hard to add features and technology that are not always that great. Yeah, BMW has their 3 year preventive maintenance service (great marketing) but you keep that car after that service is over, you will probably pay through the nose for repairs when they happen. Overall, you probably will pay less in overall price for Lexus, Acura, Infiniti, etc.--including repairs. This is because Japanese car companies (and other Asian car compaines try not to put too many faulty toys in their cars and what they do put is is usually practical like A/C controls on your steering wheel not. Another thing---Japanese car companies don't need to "price their vehicles as much as Geramn car companies" because they don't nearly cost as much to make. As i said before, they don't put in all these toys!!!

My point is that both German and Japanese cars have their issues with quality and what not. When it comes down to cost, reliability, value, and ease of finding repair, Japnese cars (or other Asian imports) surpass many other American or European cars. If you want a BMW, buy a BMW. I nothing against buying a European car. If you can actually afford to buy a BMW, Audi, etc. then repair costs (OR ANY COSTS IN GENERAL) shouldn't really mean much to you. Hey, I would love to own a 3 series BMW but the truth is that I can't afford it and I know that overall my Accord will last just as long and probably not have as many repair costs.

BUY WHAT YOU WANT BECAUSE THAT IS WHAT WILL MAKE YOU HAPPY!!!

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Htay7500 - 7/3/2007 3:53:26 PM

+1 Boost

certainly, thts why my dad bought his accord. it was cheap for him to operate and fix and spent wayy less time at the repair shop than his passat (of course it didnt satisfy his needs).

BMW995 - 7/3/2007 11:57:46 AM

+2 Boost

Only one post brought up the real reason Japanese cars are moving ahead of U.S. cars. Health care and pension costs are dramatically lower for the Japanese. The avg U.S. auto worker charges $70/hour. Compare that with $40/hour for the Japanese.
I believe the Germans are close to the U.S. rate.
It's amazing the U.S. cars are as good as they are with this handicap!!

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froggy780 - 7/3/2007 12:38:34 PM

0 Boost

Hmm. Are you sure about that? Japanese labor is pretty expensive which is the main reason why most products are not made in Japan anymore. Overall, I think Japanese labor costs more---I think they also get health care and pensions too!! The Japanese don't work cheap--I'm pro or anti- Japanese but question your analaysis.

BMW995 - 7/3/2007 12:03:02 PM

+2 Boost

Why did the new Buick Lucerne come out with an antiquated 4 sp automatic trans? GM simply couldn't afford to develop in time their 6 sp auto. A lot of the low cost Japanese cars alread have at least a 5 sp and some have 6 sp auto trans. We're paying too much to the workers and it's taking away from research and development.
It's a losing battle!

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adoptgreyhounds - 7/4/2007 6:53:14 PM

+1 Boost

Why didn't GM put the hydra 5speed in it then, that tranny has been around for years and its good too BMW used it in the E46,E39, E38 cars and its much better than the new ZF box.

point is it's not health care and pensions altogether, they don't have to use the newest products, most of there customer base just don't care as long as the rebate is big enough. So many of GM customers/employees are stuck upside down in their vehicles rebates and employee pricing is the only to get a new vehicle. It's a cycle GM, Ford and Chrysler can count on for sales.

Look the unions have screwed themshelfs and the members need to remember they WORK for GM, Ford and Chrysler not the uaw.

hieneken - 7/3/2007 12:49:00 PM

-1 Boost

American car cheap and suck. German car expansive and suck.Anyway guess which country made the most money in 2006. America rank#1 with 10 trillions.Japan #2 with 4 trillions. German #3 with three trillions. so do the maths and tell me who is the King. who is the #1?

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Yonder7 - 7/3/2007 7:42:53 PM

+1 Boost

Japan if you "percapita" math

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xj13 - 7/3/2007 8:08:20 PM

0 Boost

who cares? the cars are cheap and boring.

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Yonder7 - 7/3/2007 9:25:40 PM

+2 Boost

You care and everybody cares, that's why this page is so long.....

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ThierryHenry14 - 7/3/2007 11:32:24 PM

+2 Boost

Japanese automakers are more efficient than US... Simply stated, and thats why they are leading, and will continue to lead.

Though their cars are not the best at everything, they are great at doing what they have to do... A lot better than American cars, thats for sure.

PS. I am a German Car Fan, so its not bias.

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markusck - 7/5/2007 9:30:54 PM

+1 Boost

I think at the end of the day we are talking about two different products for different demographics...the Japanese are indeed the best at producing an applicance for the non enthusiast (camry, avalon, ES, accord, etc), which is the biggest market by far..they sell to a price point first, image, magic feel, badge is not important as long as the features are there and the price is very competitive, very little risk in design, just safe. I think the Walmart example is valid..the Euro and Americans produce more of an image and design first which tends to appeal to the car person (emotion)...(think Dodge Charger, the Vette, Jeep, SL, S class, GTI, A8) and lots of models, almost too many to be profitable..unfortunatly with higher design and many models (americans) you don't sell as many units..for me I would rather go for a bit of style, flavor and be willing to give up the all so important..wait for it...reliability..that the Japanese have perfected..now if they could only design something that didnt just put me to sleep..the Lexus ES is a fine example of what Japanese design produces and defines the brand and corporate culture...

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