[Whispers of Society] The rapidly changing landscape of automakers!
I am a grandpa who supports the Z generation and future generations!
Well, yesterday I posted an article about Trump's tariffs.
Mr. Trump quickly lowered the flag of the tariff war with China.
However, Mr. Trump's strong belief that Japan is free-riding on the US for security remains unchanged, so just because China managed to escape doesn't mean Japan will necessarily be able to get through it unscathed.
Not only was there a 90-day grace period, but because most of the Trump tariffs were blocked by the International Trade Court, the media coverage was relatively optimistic and the parliamentary debate didn't heat up, but this is a problem involving the two pillars of defense and automobiles, and a serious situation is unfolding for Japan.
I have been posting that the automotive industry, which is the backbone of Japan's industry, still has the strength to compete globally, which is why it needs government support.
In addition to broad technological capabilities that are not just focused on EVs, the employment base through the subcontracting structure is extremely large (5.5 million jobs), so instead of the lack of policy in providing subsidies solely for EVs, I have been saying that it would be better to strengthen support (subsidies) for Japan's hybrid vehicles and fuel cell vehicles to support domestic demand.
However, it might already be a little too late.
The 2024 global automaker sales ranking compiled by the Japan Automobile Manufacturers Association is as follows.
South Korea has maintained its position as the world's third largest because the Kia Group came under the umbrella of the Hyundai Group, but it is below the previous year's level. Many European and American manufacturers, as well as Japanese manufacturers, are also below the previous year's level. On the other hand, the three companies that show outstanding growth with double-digit percentage growth compared to the previous year are all Chinese manufacturers.
BYD is famous in Japan for using Masami Nagasawa in its commercials, so I think you know it well, but a 41.5% increase compared to the previous year is an outrageous number. With the increase in EV exports to Southeast Asia and local production, it has become a threat to Japanese manufacturers.
Geely Holding Group is also up 20% from the previous year. It is a Chinese manufacturer that owns major private Chinese automaker Geely Auto and Swedish automaker
Volvo Cars, and is also a shareholder of Germany's Mercedes-Benz.
Chery Automobile is a Chinese state-owned enterprise, but it has seen a 38.4% increase in sales compared to the previous year.
Changan Automobile Group is a historic automaker that has grown through partnerships with Japanese and American automakers. It was also a joint venture partner with Suzuki and Mazda, but the partnership with Suzuki was dissolved in 2018. It doesn't have the same sales increase as the three companies mentioned above, but a 5.1% increase is still significant.
Tesla in the US has run out of steam. Due to the falling out between Elon Musk and President Trump, the BYD era will continue for EVs.
In Japan, due to the collapse of the partnership between Honda and Nissan Motor, among Japanese automakers other than Toyota, those that expanded into India early on and are growing, like Suzuki, may be able to compete globally, but Honda and Nissan, which have relied on the U.S. market, as well as Mazda, are in a difficult position—that is the reality brought about by Trump's tariffs.
As for Nissan, the closure of two plants in Kanagawa has been suggested, and a restructuring plan involving 7 plants and 20,000 jobs worldwide is being prepared.
Such decisions that make people dislike you (closing factories) could not be made by a Japanese president; in '99, it was Carlos Ghosn. This time, Ivan Espinosa, who was the president of Nissan Mexico, will make the decision as the group's president.
It is truly pathetic as a Japanese person to see Japanese companies where the top leadership cannot make decisions. Management leaders who can only postpone decisions—perhaps the same can be said for politicians. Is this the formula for 30 years of zero growth?
Strengthening corporate governance has made executives timid; if there are 100 executives, they only do things that 99 of them know are the correct answer, and current Japanese companies, unable to decide on sowing seeds for the future, are seeing their earning power weaken steadily.
Even so, only the top executives get high retirement bonuses and get away with it. Meanwhile, I just pray that the reality of workers being laid off one after another does not come to pass.
Even so, the ineptitude of politics that encourages such movements is truly sinful.
The media doesn't report on these issues, do they?
Well then, the House of Councillors election is approaching.
Thank you for reading until the end.
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