What is wrong with US Car Manufacturers!, page 2

Originally posted by JohnnyCanuck

Originally posted by vox2442

Originally posted by JohnnyCanuck

I thought the auto pact went out the window with NAFTA? And didn't the WTO rule it was an unfair trading agreement?

NAFTA worked around the auto pact but is was ruled unfair by wto, yes. I erroneously used the phrase as shorthand for Canadian/American built cars

And what legislation do you think is needed? I'm not sure I see what you're getting at.

There remains a great deal of Asian protectionism in the form of trade barriers erected/enacted against the North American car manufacturers. They ought to be called on it, or get a little trade war blasted back at them. That's where our Parliament/Congress could kick some butt. See:
www.unsustainable.org...

No nation has benefited more from protectionism than Japan. In recent years, however, the fact that the Japanese car market remains as protected as ever has dropped off the American press’s radar. Although Japanese officials first proclaimed the market open as far back as the 1970s, as of 2008 the combined share of all foreign makers was still just 5 percent. This was only a fraction more than in the 1980s and the second lowest in the developed world after only Korea.

I know a nation that benefited more from protectionism: My home and native land. The auto pact built my hometown. The FTA killed it, and NAFTA buried it.

That was a good read, though. Thanks for posting it.

But there are some inaccuracies. Or at least some things that don't match up with what I see when I look around me.

In my experience, Japan is a far more open market, as far as imported vehicles, than Canada. Possibly more open than the States. I can buy anything here. Can't buy a new Alfa Romeo in Canada. Can't buy a Renault, or an Opel (badged as such), or a Peugeot. Can't buy a Volkswagen Polo, for that matter, or anything made by Fiat. Maybe that's changed, I've been away for a while.

But how many are actually on the road? Good question, and tough to gauge.

Here's one indicator:

www.carsensor.net

It's a Japanese version of Auto Trader. More or less. There are three sites like this that I know of, this one is one of the biggest. I use it, anyway. If you look down the left hand of the page, there are car manufacturers listed. The top bunch is Japanese, the bottom bunch is imported. The numbers beside each show how many new and used cars are available for each.

the totals as of now:
Japanese: 187,000
Imported: 26,000

A more partial list is here, but grouped by country:
www.carsensor.net...

This isn't a scientific survey, but it's a decent snapshot of the market.

That's a fairly big discrepancy. But there's a wild card in there, that a lot of commentators - including the article you posted - seem to forget about. The Kei Car..

When this idea was put in place in 1949, there were quite a few imports that were classified as Kei, but over the years the numbers have dropped off. There aren't all that many cars being made outside of Japan that still fit the bill.

www.carsensor.net...
kei - 64,373

That leaves 122,000 domestic cars that are comparable to the imports. Comparing apples to apples, about a fifth of the cars available for sale on that site are imports. If we weed out domestic heavy trucks, buses, heavy equipment listings, snowblowers and so forth, the number drops to about 110,000, or about a quarter of the cars for sale.

And it also leaves a huge market relatively untapped. The Kei market in Japan is huge - they are nearly everyone's first car, and remain the standard second car nationwide. Nearly every house on my block has one. Some have two.

I have heard the case that the existence of the Kei class constitutes protectionism. And I'm not sure about that. Years ago, when other countries made cars that fell into this category, it was not protectionism. Now that those companies have willingly stopped making those cars, they claim it is. Smart was the last big name manufacturer to take a run at this market, and despite decent sales, they ditched the model.

Oh, and the Renault line in that story is utter BS. I pass a Renault dealership every day on my way to work, and have done for years - and as far as Peugeot is concerned, I have no idea what that guy is talking about - I see them often, and there is also an established local dealership. Likewise Opel.

Here's the Renault for sale:
www.carsensor.net...

Living here, I have the ability to buy just about any car made in the world. Certainly any car worth owning. And the prices are not out of line with what I would pay for a comparable import in Canada. Have a click around the site I posted, you'll see what I mean.