Hitachi, Volvo, John Deere, JCB, Mercedes-Benz, and Yulon. Honda was represented by Toyota Motor Corporation in the 1990s before deciding to withdraw in January 2016. The Japanese companies which have had difficulties in South Korea are: Toyota in the 1980s, followed by Honda, and Mazda after it started to manufacture vehicles under the Chrysler nameplate (which Honda's motorcycle business became as a result of their buyout). These companies did not succeed because they were not able to get ahead of other foreign brands such as Nissan, Mitsubishi Motors, Renault, Nissan, and Daewoo. China Chinese automotive manufacturers are experiencing increased competition as low-cost manufacturers have entered the market since the 1990s. This has increased the cost of manufacturing in China. Chinese companies are able to reduce costs through local production of their parts. The Chinese government has worked to increase the number of automobile companies by supporting new companies and relaxing quotas. Japan Japanese domestic production is increasing, but Japanese exports have not shown the same increases. Domestic Japanese production of cars has increased in the last five years. This growth has been attributed to increased technology in vehicle design, engine manufacturing, and materials, new regulations, and demand for smaller, more fuel-efficient cars. Japanese producers have taken these opportunities and have developed them further. They have also introduced new technologies to improve the environmental effects of their products. Government support The government of Japan has taken steps to help make the nation more competitive by easing import restrictions, making it easier for foreign companies to establish plants, encouraging companies to import technology, and creating a fund to help finance companies. To attract Japanese companies to import foreign technology, Japan has established the National Strategy to Promote the Development of a Quality Automobile Industry. This is a government policy to improve vehicle production in Japan. As a result of this initiative, Japan's exports of vehicles have increased. Furthermore, Japan has reduced the tax burden for production of vehicles. Japan also has a program to help finance domestic production. This program aims to provide financial support to Japan's domestic producers in exchange for increased domestic production. The Japanese government has encouraged local manufacturers to import foreign technologies through tax incentives. As a result, in 2003 Honda Motor Company invested in Formula One Team BAR. In 2006 Renault invested in Suzuki Motors and Nissan Motor Company invested in Mitsubishi Motors. Both companies had been Japanese corporations and had invested in racing at the national level. They wanted to use Formula One as a place to test technology with a small investment, which would then allow them to create better products for the general public. Japan also has the JAF, which is a government-sponsored company that provides loans to small companies. The JAF also supports technological investment in industry. The JAF supports smaller Japanese companies who are willing to use modern technologies and improve products so that they can compete globally. The Japanese government also wants to export better Japanese technology. It has created the New Energy and Industrial Technology Development Organization (NEDO) to develop environmentally-friendly technology. This is an effort to improve the environmental impact of Japanese automobiles. History The Toyota Motor Corporation was originally established on September 1, 1937 in Japan, before expanding to the United States and Europe. Over the last decade, Japanese automobile manufacturers have introduced new technology in its vehicles. This new technology has come from both domestic and foreign suppliers. Nissan has made their vehicles more fuel efficient. The first vehicle that Nissan made to use this technology was the Nissan Tiida. This vehicle was also released in North America. Nissan brought over the same technology to develop the Nissan Rogue in North America. Toyota has had similar success. In 2008 they released the Lexus RX 400h which won awards for its fuel efficiency. This technology was brought over to Toyota by Subaru. These technologies were first developed in Japan, then brought over to North America. The Toyota Prius has been successful because it combines fuel efficiency and performance. The Honda Accord has been used in Japan as a fuel efficient vehicle. The Honda Vezel and Honda Insight were designed with hybrid technology. The Insight uses a hybrid technology to improve fuel efficiency. These technologies were brought over to the United States from Japan and were used to create the Honda Insight. The Toyota Highlander Hybrid has also been successful in North America. The hybrid technology used in the Highlander makes it more fuel efficient. These technologies have come from European and Japanese manufacturers. Toyota uses Japanese suppliers for their engines and hybrid technology. The Toyota Avalon uses a hybrid technology that is provided by a subsidiary company of Fuji Heavy Industries, Ltd. In 2008, the Volkswagen Group had started producing hybrid vehicles. Hybrids currently only use fossil fuels to start a vehicle, then switch to electricity. As of August, 2010, Mitsubishi is moving ahead with plans to sell its Mitsubishi i MiEV in the United States. Mitsubishi has chosen the New York Auto Show to launch the new product. The Mitsubishi i is based on technology used by Nissan in their Leaf and the Renault Zoe. It is designed to be environmentally friendly. Automakers are working with government agencies to improve fuel efficiency. To improve fuel efficiency they have modified several vehicles. In 2010, Hyundai and Kia were able to reduce their vehicle emissions by 15 percent. The South Korean manufacturers have focused on emission reduction by improving fuel efficiency and reducing weight. It is expected that emission reductions will continue with future vehicles. Hyundai is continuing to sell products made by Daewoo. Both companies are part of the Hyundai Group. The current CEO of Hyundai is Chung Mong-hun. Chung holds leadership positions in Mitsubishi and Hyundai. He has the ambition to make Hyundai become a worldwide power in the automobile industry. As a result of their efforts, the Japanese automobile industry has become more competitive. This has led to the increased growth of the industry. In the future, manufacturers will continue to improve technology and compete on a global scale. Government regulations New laws have made Japan's manufacturers want to become more competitive in the United States. In order to become competitive with foreign companies, they have had to rely on their technological knowledge. The Japanese government has encouraged domestic production in order to create local jobs and boost national production. The Japanese government has also created the Advanced Industrial Techniques Law which allows companies to use foreign technology. These measures have made domestic companies more competitive with foreign companies. The United States' government has also made requirements for improved fuel efficiency. In 1970, the Corporate Average Fuel Economy (CAFE) regulation was created. CAFE gives manufacturers a target for improving fuel efficiency by increasing fuel efficiency by one percentage in five years. This regulation has continued since 1970. In 2010, the National Highway Traffic Safety Administration gave manufacturers two years to improve fuel efficiency and improve the performance of vehicles. Also in 2010, the United States' National Highway Traffic Safety Administration announced regulations to improve fuel efficiency. This proposal called for stricter regulations that would help the United States meet its economic and security goals. The changes included raising standards on Corporate Average Fuel Economy (CAFE) standards by 40%. This proposal was supported by the United States' government. The United States has also established a CAFE rule that will be implemented in 2012. The 2012 standards require fuel efficiency of 35 mpg for cars, 35 mpg for medium-sized SUVs, and 28 mpg for trucks. These new standards can be achieved by improving fuel efficiency and limiting emissions. These two actions will help protect the environment and economy. Japan has not enacted any new regulations. However, Japanese manufacturers have seen a rise in fuel efficiency, which has made them more competitive with foreign companies. In 2010, Honda won in the EPA Clean Air Excellence Award because of their performance on vehicle emissions and fuel efficiency. Environmental impact Japan has an increased number of cars in recent years because of improved fuel efficiency. In the 1980s, Japan had very few small, fuel-efficient cars. Even though they did not produce many cars, these companies did not experience the same success in the United States. They have to import foreign technology to produce vehicles that will meet consumer demands. Furthermore, these imports require international companies to maintain a strong market in Japan. Automakers have responded by increasing production and decreasing the fuel efficiency of their vehicles. Despite these efforts, Japanese automobile companies have increased their success in the United States. Japanese automakers have increased their market share in the United States over the past decade. Japan has produced cars that have a higher performance. Japanese companies also have been able to produce cars with less fuel efficiency. However, the Japanese government has promoted environmentally-friendly fuel efficiency and has helped to develop technology to make vehicles more environmentally-friendly. References Category:Automotive industry in Japan Category:Economy of Japan