'The Supremacy of Japanese Cars Has Been 40-Plus Years In the Making' (bloomberg.com)

American business journalist Joe Nocera writes in a Bloomberg article about "how badly things have deteriorated for the U.S. car makers," after the recent news that both General Motors and Ford will soon be exiting the sedan market in the country. Slashdot reader gollum123 shares the report: Much of the analysis about Ford and GM's exit from the sedan market stressed that sedan sales have lost ground in recent years "as consumers have gravitated toward pickup trucks and sport-utility vehicles," as the New York Times put it. If you look at the historical sales figures of the top Japanese sedans, you'll see a small decline in recent years, but nothing like the big drop-off in sales that have hammered the American companies. So in addition to the overall decline in sedan sales, there is a second, largely overlooked, dynamic taking place: Americans have only stopped buying American sedans, not Japanese sedans. The American car companies now say they are going to count on profits from trucks and SUVs while moving toward autonomous and all-electric vehicles. They had better hope that transition takes place quickly.

I couldn't help noticing that while the top three selling vehicles in the U.S. are, indeed, American-made trucks, No. 4 on the list is Nissan's top SUV, the Rogue, the sales of which have gone from 18,000 in 2007 to 403,000 last year. No. 5 is a Toyota SUV, the Rav4 (407,000 in 2017). No. 6 is the Honda CR-V (378,000). And the leading American SUV? It's the Chevy Equinox. Last year, Chevrolet sold 290,000 of them -- 100,000 fewer than the Toyota Camry.

Comments

Japan still HAS car companies.

[jcr]

Ford, GM and Chrysler haven't given a shit about selling cars since the 1960s. As far as they're concerned, the car is just a tool for selling you a loan.

-jcr

It's 100% about tarrifs not build quality

[goombah99]

The reason the US car makers favor trucks is that the japanese trucks have a 25% tarrif since 1973. It's much more profitable for US automakers so they emphasize this category over the thin margins on sedans. Additionally one has to consider the labor and material costs. For some cost structures it's much better to sell one high ticket item over two smaller ticket items, favoring the production of trucks over cars.

In 10 to 20 years...

[williamyf]

... from now we will be reading an article saying that "The supremacy of *Korean* cars has been 40 years in the making", and in 30 to 40 years from now, we will be reading an article titled "The supremacy of Chinese cars has been 40 years in the making"

that is the cycle of such things. Happened with cars, consumer electronics, tvs and monitors, computer components, appliances, the works.

I was born in late 1972, and I do remember a lot of things...

Remember the the 70's when japan was the place were cheapo-low-quality plastic toys and shoody appliances were made? everyone wanted a Zenith or GE, or RCA TV. No stinking toshibas, or Hitachis! And cars, everyone wanted a chevy or a ford (or a european). Japanese cars were a synonym of cheapo-low quality.

Remember the 80s when having a "Samtron" monitor in your computer was a sign of low quality? Rember in the 80's, when no one in their right mind would buy a Hyundai car? Nope, everyone wanted a toyota then, and a trinitron TV, or a NEC monitor. Samsung and Lucky Goldstar TVs were for loosers!

Remember the '90s and early 00's, when no one in their right mind would buy a Chery or a Geely car? Or a Haier TV or appliance? What now, GE appliances is a wholy owned subsidiary of Haier, which is the bigest Appliance manufacturer worldwide, while Geely owns both volvo and Lotus, and chery is assembling jaguars and land rovers for the chinese market.

So, countries upend other countries. do not dismiss them on the base of "percieived" quality (it will improve) or "perceived lack of innovation" (for they will innovate). Just take solace in that, just like in Japan, the chinese juggernaut will stop, and be upended by someone else...