Ford urges U.S. pressure on Japan

[Nikked]

Ford urges U.S. pressure on Japan ahead of meeting

AutoNews


Ford Motor Co. pushed for President Barack Obama to pressure Japan's prime minister to open its auto market and refrain from weakening the yen to give its companies an advantage.

Less than 4 percent of auto sales in Japan last year were brands from companies based outside the country, Joe Hinrichs, Ford's president of the Americas, said today at an Ohio engine plant.

Ford also is concerned about the yen, which has weakened about 8 percent against the dollar since Dec. 26, when Shinzo Abe became prime minister.

"We hope the U.S. government will send a clear message that any future trade policy with Japan must ensure a level playing field and not come at the expense of American workers," Hinrichs told workers at the factory. Ford plans to invest about $200 million and add 450 new jobs there by late 2014.

Interesting, Japan could be a potential export market for Australia, so if Ford gets their way, it could benifit us here. To bad the Australian government won't put the same pressure on the Thailand government...

[FPV GTHO]

Surely Japan's displacement taxes would make any AUS exports about as worthwhile as the Thai exports.

[mik]

It would be nice if the playing field was a bit more level for sure, especially with the Asian country`s, probably won`t hold my breath though.

[FPV GTHO]

Unfortunately, if you want an even playing field we're the ones who have to change. Not the Thai and not the Japanese.

[ford man xf]

Originally Posted by FPV GTHO

Unfortunately, if you want an even playing field we're the ones who have to change. Not the Thai and not the Japanese.

Can you elaborate on this?

[greenfoam]

He means we are living in a dream world wage wise... It can't and wont continue forever. We are building low end quality at high end prices. About the only developed country that looks like it can compete at its current wages is Germany but they are decades ahead of Australia in engineering quality.

[FPV GTHO]

Originally Posted by ford man xf

Can you elaborate on this?

Every country with manufacturing has some form of protectionism going on. Chicken tax, displacement taxes, high tariffs etc. All we have is a measely 5% tariff on imports and FTA's between 2 major markets - USA and Thailand.

[mik]

Originally Posted by greenfoam

He means we are living in a dream world wage wise... It can't and wont continue forever. We are building low end quality at high end prices. About the only developed country that looks like it can compete at its current wages is Germany but they are decades ahead of Australia in engineering quality.

the german stuff costs a lot more for that privilege , but there`s no doubt our cars could be improved in a couple of area`s,
that aside, compared to the cheap import countries we have high safety standards, high social safety net in Australia, high cost of living , high cost to do business, and a fair trade deal that gives them the monetary advantage.
my view is we should`nt have to drop our living standards so the cheap importers can sell their cars here that disadvantages our local manufacturing, and i`m just talking about cars, look elsewhere there`s plenty of company`s going down the gurgler.

[FalconXV]

Japan is definately a market Ford has, for the most part neglected.
I think the Ka is the only thing that was mildly succesful, and that was tempered by lack of an auto.
The only non JDM product to gain traction AFAIK, is the VW up!, so Ford would need to compete with that. Otherwise, maybe a mini ute like the Datto 1200/Subaru Brumby/Sambar. A kei version of the next Ka might do alright.
If you look at the Ford.jp website, they have an LHD Mustang and that about it, not even in Kanji/Hiragana, so definately not an important market for them atm.

[Nikked]

Imagine a RHD 2l Ecoboost Mustang for the Japan market....

[NeillNZ]

Something interesting that occurs to me about this is how Japanese perceive foreign cars.

From what I remember when I was there in 2005 is that most of the foreign cars are LHD. Even models for which there are RHD versions, for example BMW 3 series and Mercedes Benz C class.

As I understand it the reason is about prestige. Something like local cars are ordinary and RHD, foreign cars are exclusive/prestigious/special and LHD.

I wonder if they would do best selling RHD or LHD cars.

For Ford to be successful in Japan they will need a marketing strategy that appeals to the Japanese psyche. Would be a fascinating job!

[ford man xf]

Originally Posted by FPV GTHO

Every country with manufacturing has some form of protectionism going on. Chicken tax, displacement taxes, high tariffs etc. All we have is a measely 5% tariff on imports and FTA's between 2 major markets - USA and Thailand.

True, but aren't tarrifs on our exports in other countries low, hence trade agreements?
If we slap a larger tariff on imported goods from "X" country, they are more than likely to slap a larger tariff on something we export to them, the last thing we need is a trade war, especially with the hig AUD not helping with our exports.

[DRU842]

Ford's position in relation to Japan has changed significantly with its lower shareholding in Mazda.