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According to the China Association of Automobile Manufacturers 99.7% of cars made through November 2009 were sold. According to Trade Minister Chen Deming demand in the rural areas now exceeds that in the urban regions. And demand is also growing in smaller and mid sized cities compared to Beijing and Shanghai. Demand surged 46% to 13.6 million vehicles in 2009 according to the Association. For example 55-60% of Nissan sales come from middle and small sized cities according to a Nissan dealer. Nissan with 2009 sales at 756,000 is now the largest Japanese auto manufacturer in China. Government new bank lending and $732 million in subsidies, sales tax cut, all helped auto sales. But Chen Bin who oversees regulation of the auto industry at the National Development and Reform Commisson says automakers face possible overcapacity in China.

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Japan is not seriously affected by the slowdown in growth in China. Sales in China of Toyota, Uniqlo, and other companies are increasing. Japan's exports to China increased by 8.3% in May 2013 over the prior year. Toyota expects China sales to grow by 7% in 2013, compared to a decline of 4.9% in 2012. There is high demand for SUV's. Nissan and Honda expect sales increases in 2013 of 6% and 25%. Komatsu sales are recovering because of infrastructure projects in rural areas of China. Bank of Japan Governor Kuroda says the bank will monitor China closely, particularly the shadow banking system.

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Ghosn touches on another issue emerging in the auto industry. With prices of iron ore jumping steel prices are also increasing which will force automakers to raise prices in the foreseable future. With economic downturn in the USA and parts of Europe Nissan like other automakers will find it difficult to increase sales with higher prices. This makes the new markets of India, Brazil Russia, China and Africa and Middle East with exploding demand significant. As the president of Honda in India puts it its better to spread the profits and sales globally. Nissan laid the ground for a 1.1 billion plant south of Chennai, India, rather than wait for the infrastructure to deliver just-on-time in India, the infrastructure will come later.

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Daimler CEO Zietsche, says he sees global demand for all electric cars or electric hybrids at 1-5% of total demand by 2020. This was a cautious and measured view for Merceds Benz. Benz joined BYD of China in a joint electric car venture in China, with an investment of $90 million. This is in conrtrast to the view of Nissan's Ghosn, who sees the demand closer to 10% by 2020 for electric cars. Nissan plans to produce 500,000 Leaf electric cars by 2012.

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Even if a automobile part for assembly is manufactured in the U.S., the subparts may be sourced overseas. This makes it extremely difficult to pinpoint the country of manufacture. Toyota Siena is 90% sourced with US and Canadian parts according to the U.S. National Highway and Traffic Safety Administration. The Ford Mustang 2005 by contrast uses 65 %US and Canadian parts according to NHTSA. There is a publicity war between the US makers and the Japanese with commercials arguing about who is more American. According to the Japanese Automobile Manufacturers Association $28 billion is the amount of cumulative investment in N. America and $45 billion is the amount of annual purchases of parts, so that 67% of the Japanese brand cars sold in N. America are made there. A graph from National HighwayTraffic Safety Association shows the Average percentage of auto parts made in the US and Canada for cars sold in N. America. It shows 2 interesting things. 1. That the US makers GM and Ford are closer to 80% and the Japanese makers Toyota and Honda are about 70%. So American makers still have more American content. Note though that Nissan is only around 54 % domestic content, significantly lower. Its always been a much weaker competitor than Toyota, and its sales recently have been sluggish in the US. The Koreans are not shown here but its quite possible that their content is closer to Nissans than to Toyota or lower than Nissans. So all foreign plants may not be the same. Notice the change in Toyota from 52% domestic content to 70% domestic content, from 2000 to 2005,an 18% jump which could only result from a deliberate strategy anticipating the controversy of who is truly American and who isn't. 2. In contrast GM has definitely shifted from 92% to 80% and rapidly moving in the opposite direction than Toyota. The sea change currently underway in the American auto parts industry is in the background, with Delphi looking to increasing manufacture and sourcing overseas particularly Asia (China, India etc), to bring down costs and be competitive in a globalizing auto parts industry. In the future as Delphi shifts overseas and GM procures from China and India one could see a continuing rapid shift to higher overseas content to add the cost savings directly to GM and Ford's bottom line. ...

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Mexico has emerged as the world's fourth largest exporter of cars in 2012 after Japan, Germany, and S. Korea. Mexico is expected to surpass S. Korea in a few years. In 2011 2.68 millon cars and trucks were manufactured in Mexico. Honda, Nissan, VW and other companies are building new plants in Mexico. Exports in 2012 are expected to reach 2.14 million cars. With the increase in wages in China's auto plants Mexican wages are highly competitive with China, considering the proximity to markets in N. America and Latin America. Wages in Mexico are about $40 a day for assembly line workers. By comparison wages in China are about $3 an hour. Honda plans to manufacture its Fit small car in Mexico. VW executives say a VW car made in Europe is imported into Brazil with 35% duty, into the U.S. with a 25% duty on trucks, and this can be avoided by making automobiles in Mexico. The quality and reliability of vehicles made in Mexico compares well with vehicles made in Japan, according to Nissan, and productivity at plants is high. There is also good avialability of engineers and plant workers. The growing automobile production also means new plants of auto suppliers from Japan, Germany and other countries in a snowball effect as new auto plants open creating new demand for components....

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This WSJ report looks at the state of manufacturing in India in 2023. Foreign companies in renewable energy from Denmark, Apple Computer, and local companies such as Ola in electric scooters, are building factories and expanding manufacturing capacity in Sriperumbudur and other special economic zones in Tamilandu state of India. BMW and Nissan are also located in the state. It comes as friendshoring from the US is encouraging foreign companies to invest in India. There is a definite acceleration in the growth of electronics and machinery exports under the Indian government's Make in India plan. This report shows that India is in a learning curve in developing its manufacturing base. Not shown here are how the goals and execution of a sound overall plan is envisioned by the government. The Gati Shakti plan put forward by Mr. Modi is intended to bring together all agencies of the government to work together seamlessly to provided an overall execution of infrastructure development for logistics, airports, fast rail, roads and bridges, and modern housing. It is a National Master Plan for Multi Modal Connectivity that brings together 16 ministries for building state of the art infrastructure. The national plann ing agency NITI Aayog says it recognizes the multiplier effects plus spillover effects of infrastructure development for  Indian manufacturing, and understands how the US, Japan and China accomplished this going back to the New Deal in the US in the 1930's. It can also pioneer in new ways learning from the experience of these countries. This will bring results in demonstrating how India is learning and developing its own model of the best way to build excellent infrastructure, and do this with renewable energy, and environment inclusive efforts.    ...

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GM and Ford US International Trade Commission report in 2024 sees only about a 5% increase in prices for a 25% tariff in car imports into the US from EU, Japan, Canada, Mexico and China. With US production GM at 60% Ford at 80%, both companies are better positioned to shift production to the US following 25% tariff on cars imported into the US. GM also has the financial strength to invest in new auto plants in the US. Given a period of transition US companies are in a position to tap the added demand as more cars are made in the US.  Stellantis Stellantis formed from the merger of Chrysler, Fiat and Peugeot makes many of its cars overseas in Mexico and in the EU, and has considerable exposure. Toyota Toyota sales in 2024 were 2.3 million cars, with about 60% of the production in the US. Hyundai and Kia, Nissan Hyundai makes about 80% of the 840,000 cars it sells in the US in US plants. Hyundai plans to invest $21 billion in the US to make cars in the US including $5.8 billion for a steel plant in Louisiana. Other companies may follow Hyundai to Make in the USA. VW VW had plans for an expansion to make 590,000 cars. It has current  sales of about 400,000 cars in the US. Expansion at the Chattanooga plant or putting in another plant could help it make most of its cars in the US. ...

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A 2024 Study by the International Trade Commission predicted that a 25% tariff on imports would reduce imports by almost 75 percent while increasing average prices in the US by about 5 percent.  As US companies have about half of the US auto market this would mean US auto manufacturers now have access to an additional 37 percent of the market by investing in auto plants in the US. US steel and aluminium plants will get additional investment to build these cars in the US. There is nothing new about this the US makers built plants in China. Germans, Japanese and Koreans took the US for stupid by keeping US cars out of their markets and thinking this could go on while by destroying US manufacturing it was  destroying America's middle class. It also gives the Germans BMW and VW, Subaru, the Japanese Toyota and Honda, Nissan, the South Koreans Kia and Hyundai, Chinese makers of EV's the option to Make in the USA and build plants invest in US manufacturing.  ...

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After an initial period of a year Japanese companies are now making the move to pull back some of the production shifted overseas with the yen at 80 to the dollar. Canon made 40% of its product overseas in 2009 before the shift to 60% by 2013. Now it is shifting production back home to reach 40% overseas production. Other consumer electronics companies Panasonic, Sharp, Daikin, are shifting production back to Japan. This is similiar to the shift back to the U.S. of products made overseas as costs have risen in China and other Asian countries. The sharp swing in exchange rates is accelerating the trend. Auto companies Subaru, Toyota, Nissan, Honda are continuing plans to manufacture close to customers in the U.S. Shorter product cycles make it possible to shift production for electronics companies compared to longer product cycles at auto companies. Murata Manufacturing will continue to make smartphone parts close to its customers in China, lifting production overseas from 14% to 30%. As a result exports have increased in Nov. 2014 by 10.8% from the prior year and imports up 2.2%, according to the Finance Ministry....

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Europe responds with platitudes and vague references to "benefits for everyone" and "detrimental" without facing up to the facts. How many American cars do you see on the streets of Germany? in Berlin or Frankfurt?- or Japan? in Tokyo or Osaka?-or South Korea? in Seoul? And how long has this been going on - since the 1980's. Europe's answer to the Marshall Plan and Japan's and China's to post war American help for recovery, was to exclude American cars and other products. GM and Ford have pulled out of China and so has VW. China's plan is to flood the world with electric cars, and Japan's to flood the world with hybrids. For far too long America has relied on capitalism that has no state involvement. In this kind of competition with hidden subsidies and national planning at the core of industrial growth in Asia. The US government has to have state involvement in it's auto, steel, aluminium, and chip industries, not to create trade disturbances but to create an even playing field for all, and rebuild a middle class destroyed by unfair trading practices of Asian nations and the EU, including Canada and Mexico which are simply used as bases to ship to the US. Ford makes 80% of its cars in the USA and GM can make the investments in new plants to raise its production from 60% in the USA to 80%. South Korea's Hyundai and Kia are investing $21 billion to make in the USA. Toyota and Nissan, VW, BMW and Mercedes can do the same.   ...

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Nissan has hired a new management team for its Infiniti brand after years of poor sales performance. Infiniti president Johan de Nysschen comes from Audi, and the brand is now located in Hong Kong in an effort to target the Chinese market. Infiniti sales were 172,000 in 2012, and Infiniti managers say the limited model lineup compared to Lexus and Mercedes hurt the brand. Sales of BMW in comparison are much higher for 2012 at 1.85 million, and Lexus 477,000. A new goal of 500,000 was set for 2017, with a focus on the Chinese market. Infiniti will target smaller Chinese cities and versions of the Infiniti will be manufactured in China.

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How Renault- Nissan execute plan to build low cost cars for markets in Eastern Europe, Russia, Brazil, Mexico, North Africa and India, China. A new plant with initial capacity of 200,000 Logan type small cars to open in Tangiers, Morocco. Plants already operate in Brazil, Columbia, Mexico and Russia for Logan type vehicles. The Logan small car at $7500 is still a middle class car in countries like India so Renault is talking to Bajaj Auto of India,a maker of motorbikes and scooters, about making a $3000 car. The scenario that large automakers are looking at is one in which makers of small cars in India like Tata and Cherry in China master the art of making small cars with lower cost components and good quality and then move upscale using this expertise to underprice them in their segments like Toyota and Honda have done. Renault moved into the low cost segment in Sept 2004 with the Logan made in Romania, so its moving quickly in this segment and it is becomin a key part of Renault-nissan's global strategy. Note that Logan sales are about 400,000 but only 50,000 of these sold in France and Germany relatively small sales in Western Europe. ...

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The US share of Japanese exporting companies went down from 20% to 16% in the 2007-2010 period, while the exports from Japan to China, India, and Brazil have gone up by 25% in the same period. Korean companies like Hyundai and Samsung plunged early into the Indian market. LG and Samsung have a significant share in the electronics and consumer appliance markets in India. By comparison Sony's share is about 5% according to Euromonitor research. Now Japanese compaies are putting a new focus on India. In food products Nissin is expanding aggressively by doubling its noodle making capacity, and making its Ramen brand available in smaller packages costing 10 cents each. The idea is to customize the effort to the unique nature of the Indian market.

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Honda Motor Company will have one bright spot as sales of motor bikes increase from 13.9 million to 14.9 million for 2009. Honda two wheelers sell briskly in Asia and South America, where they are considered low-price necessities. On the other hand Honda's auto sales will drop by 400,000 to 3.5 million for the fiscal year ending in March 2009. Honda will post a profit of $860 million or 80 million yen for this fiscal year, down 87%, by contrast Toyota will post a loss of 350 billion yen, and Nissan a loss of 265 billion yen. Honda is seeing huge growth in markets like Indonesia where $50 can be a down payment on a motorcycle., Honda sold 2.8 million motorbikes there up 34%.. Now sales are predicted by Honda Motor to drop to somewhere between 2.1 and 2.5 million bikes. Honda markets heavily to people under 25 in Indonesia, who make up half the population of 240 million people. Honda is also working on lowering costs of manufacturing by focussing on production in India, China, Thailand and Vietnam. ...

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How Ratan Tata's vision of a small car for 1 lakh rupees or about $2500 for the Indian market may change the way the world looks at and buys cars. Note that the Indian car market is expected to become the fastest growing car market by 2013 at 14.5% compared to 8% in China according to estimates by CSM Worldwide. In 2008 Tata will come up with its new 1 lakh rupee car. What Tata's vision has done is challenge the world's leading car makers to come with versions of a small car for the Indian market of their own, with Renault-Nissan, Hyundai and VW and Honda all taking up the challengein the days and years ahead. This is also a challenge for Indian infrastructure, and for the road system in all of South Asia from Sri Lanka to all the way up the South Asian subcontinent to Pakistan and Afghanistan. It will also bring about greater integration of the whole region and create the conditions for significant economic development.

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DJT plans for 25% tariff on all imported cars goes into effect April 2, 2025. It is intended to promote additional investment in the US auto industry, boosting jobs and wages in the US. These countries have now wrapped their behavior around national sentiment even though they very well know how the US has looked out for Europe, and especially China throughout cataclysmic events in the 20th century and the 21st century such as foreign occupation and failures in modernization. By 2015 the US which had given Europe the Marshall Plan and helped Japan rebuild from the ashes of World War II, South Korea rebuild from the devastation of the Korean war, and China rebuild after the failed industrialization experiments of the 1960's and 1970's, was now facing nations that only saw this as a One Way Street, making the US look stupid and showing a degree of irresponsible behaviour on fentanyl, drug and migrant trafficking  by Canada Mexico and China that has few parallels in history. The narrative from the US is that the US allowed Europe, Japan and South Korea, and Mexico as a manufacturing base for these countries 25 years since the 1970's when Japanese Toyota vehicles made inroads into the US market to help these countries recover, a post Marshall Plan benefit given to Europe and Asia. During 1995-2015 a series of weak administrations Clinton-Bush-Obama allowed the US manufacturing base to decline under a falsely premised globalization that served US financial interests but hurt US manufacturing towns and communities across the country.  This means BMW, VW cars imported from Germany, Subaru, Toyota, Nissan, Honda cars from Japan, Hyundai and Kia cars from South Korea, Chinese EV vehicles, and cars made in Mexico for Asian and European makers, all will face this tariff. ...

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GM's joint venture with Luizhou Wuling Motors has produced a win-win situation for both companies. Wuling was a small, regional manufacturer when the joint venture started. Now Wuling has more than 1 million in unit sales. And GM has benefitted from the rapidly growing sales. Year over year sales were 29% in 2010, and were slowing to 10% in 2011, with the end of government incentives. Wuling vans can now be sold under the GM brand in India, using lower cost manufacturing in China. Looking back this was good for GM. The future however has some twists and turns and could turn out to be different. Wuling joint venture will produce cars at a lower price point under the Baojun brand. These cars were shown at the Shanghai Auto Show, and will be marketed to customers who are looking for affordable cars in the second and third tier cities in China. The Baojun brand joint venture will have one difference. This brand involves intellectual property being held in common with Wuling Motors. This is part of China's new plan for American and European manufacturers in China- the price of access to the Chinese market is greater technology sharing with Chinese partners. In the long run this should enable Chinese manufacturers to be dominant inside China. This process is already underway. According to J.D. Powers, Chinese brands had 32% of the domestic passenger vehicles market in 2010, up from 18% in 2000. Something similiar happened with Japan, where Nissan was making Britain's Austin A40 series in the mid-1950's. By the 1960's the foreign tieups were replaced by Japanese manufacturers dominant in the home market and exporting their own models. ...

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Nissan has fallen behind in China and India. It is now trying to take a new approach by being one of the first to build a small car in India that would cost initally $7000, then bring it down to $5000, and also is working to make a car in the long run for about $3000. India has a small car that runs about $5000 made by Maruti Suzuki but this model the Maruti 800 has a rudimentary design that has not been changed since 1983 and its peak time may have passed. Tata Motors is coming up with a small car costing about $2500 or 100,000 rupees w th a sales target of 2 million cars in the first 5 years, with 4 doors four to five seats, and a 660 cubic centimetre rear engine similiar to the size used in minicars in Japan. Hyundai is also big in the Indian market and holds the second largest market share after Maruti Suzuki. Honda has the Civic in India for about $17,000. And Toyota's Corolla runs $23,000 and Toyota is looking at a small car for the Indian market. Nissan is focussing on the Indian market at a time when sales in Japan are falling. The Indian strategy for a global export hub from India for small cars means Nissan has to dedicate resources and priority for this effort. Nissan and Renault plan a joint business center in Chennai. It will also mean Nissan has to break all the old rules as with the current methods margins are very low, 2-3 % on small cars, so new things have to be tried. ...