From: SteveWall@aol.com (Steve Wall)
Newsgroups: rec.autos
Subject: Re: Saturn, Honda, and Japan
Date: 25 Sep 92 17:31:59 GMT
Organization: Not if I can help it.

> 
> The "paranoia", in my experience, comes not from jealousy that the U.S.-
> produced cars are not up to scratch (which most of them aren't) or from
> the fact that the car is a "high profile" item which we see every day.
> The "paranoia" comes from the ludicrously unbalanced trade situation
> which we have with Japan, and the fact that our market is (relatively)
> open, while the Japanese market remains protected by arbitrary regula- 
> tions and high tariffs.  All most U.S. businesses want is the *chance* 
> to compete with Japanese products (not only cars) in Japan.  I don't
> think any one can support the argument that Japan is not a very
> difficult market to access.  Government protectionism in Japan is very
> high, stemming from the days when Japan was an up-and-coming economic
> power and there were many small businesses which needed a little
> babying.
> 
I think the 'Government protectionism' in Japan is mostly a matter of
perception, not fact.  The Japanese have their own complex set of 'Gas-
Guzzler' taxes and safety regulations that sometimes conflict with our
own.  Our auto executives/politicians want to sell our cars unchanged in 
Japan, and yet force Japanese auto makers to build US-bound cars in accordance
with US regulations.  Since the Japanese rightfully refuse to accept
this, US execs cry 'protectionism!'.

More importantly though, you  should ask the question 'So what if the
Japanese opened their market completely?'  Would this effect the trade
imbalance?  I suspect not.  The Japanese home market for cars is 
considerably smaller than our own.  The population is smaller and the
per capita ratio of cars is smaller in Japan.  Their biggest selling
cars are the little sub-1 liter engine displacement Micro-cars.  No
US manufacturer makes anything resembling those cars, because they wouldn't
pass US safety standards.

In Consumer Electronics/Cameras there'd be no US sales either.  Our
domestic electronics (TVs/VCRs/Stereo/etc) industry is virtually non-
existent.

I think people resent the Japanese for one simple reason:  They make us
look so bad.  There are abundant examples in industry after industry,
where the Japanese have focused their efforts on improving the end
product and selling it, while their US counterparts were too  
busy playing the Stock Market, golfing, and lobbying congressmen
to notice they were losing their product marketshare.      
> 
> >It is interesting that even though quite a lot of people in the US cite
> >Japan as an automotive enemy, almost all car buyers dream about owning
> >a British or German motor car.
> 
> These countries' markets are very open to U.S. goods.  There is much
> less difficulty there with protectionist government policy.
>  
Funny, I never even consider trade policy when I admire Porsches :-}
We here in the US dream of buying Porsches & Ferraris because they're
such awesome cars.  The luxury set goes for Mercedes, Rolls Royce, etc for
the same reason.  Nobody in the US dreams about owning a Citroen 2CV.
If we want ugly & cheap we buy AMC Pacers. :-}

> >So basically the solution is this (and your car manufacturers already know
> >this). It is too late for US companies to set up Opels and Ford-Europes in
> >Japan,

The solution for US auto manufacturers is to get back into the car-making 
business.  Postpone all lofty ambitions about taking over this computer
service outfit, that Refridgerator maker, etc.  Build better cars, period.
Newsgroups: rec.autos