Interesting article on Japanese kei-cars like Suzuki

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KuroNekko
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A good read on why kei-cars are immensely popular in Japan and how the Japanese government is threatening them. The article has a few excerpts from Suzuki executives given Suzuki is a kei-car specialist.

http://www.nytimes.com/2014/06/09/busin ... .html?_r=1
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SamirD
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It's interesting how the article says the R&D on kei's is wasted. Do they not understand that a lot of the engineering that squeezes out more efficient power can be applied across the board to all sizes?

India is definitely a HUGE market for these vehicles. And Suzuki is the flat-out leader thanks to their partnership with Maruti. And while the larger Corollas and the like are making their way into the market, a Wagon R packed full of 20 school children is still a lot more common than our everyday USM Accord--there's just no space.

If Japan really does kill their kei car, I can see Indian exporting theirs to Japan as the cost to produce them is significantly less thanks to cheap and abundant labor.
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Woodie
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From that article:
That means much of the research and development that go into kei models is wasted, officials warn. Producing kei cars just for domestic drivers also hurts automakers’ efforts to achieve economies of scale, which has become increasingly important in an era of cutthroat global competition.
Wouldn't that be up to the manufacturer to decide? The top car manufacturers in the world can't figure out if they're making money? Please note, GM is not involved, we all know they don't know what they're doing.
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KuroNekko
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Woodie wrote:From that article:
That means much of the research and development that go into kei models is wasted, officials warn. Producing kei cars just for domestic drivers also hurts automakers’ efforts to achieve economies of scale, which has become increasingly important in an era of cutthroat global competition.
Wouldn't that be up to the manufacturer to decide? The top car manufacturers in the world can't figure out if they're making money? Please note, GM is not involved, we all know they don't know what they're doing.
I agree. The folks running these companies know what they are doing as they are making profit. Even companies like Suzuki that failed in the US pulls a good amount of profit due to their strong sales of small cars in Asia.

In addition, Japanese companies that sell in other nations usually built there too. This lowers costs, better protects them from currency exchange rates, and resolves supply issues among other benefits. The majority of Japanese-branded cars sold in the USA are made in the USA. It also makes sense as popular cars in Japan are not the same ones as the best sellers in the USA and other markets.

It all sounds like the Japanese government is trying to impose their own view of how it should be against the will of both the automakers and the consumers.
As someone who has lived in Japan and goes there often, I can say kei cars are really well suited for Japan given the realities of high fuel prices, narrow roads, limited parking, and short distance travel at low speeds. It's very different from driving conditions in the US and many other countries.

Honestly, Japan's government appears to need a good kick in the head these days. They are doing so many things detrimentally to their own companies and global image.
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SamirD
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KuroNekko wrote:Honestly, Japan's government appears to need a good kick in the head these days. They are doing so many things detrimentally to their own companies and global image.
They've been playing too much 'follow the leader' behind the US's mistakes. :lol:

Honestly though, if I have to immigrate to another country if this one gets so bad, I'd love to join the Japanese ex-patriots in forming a new nation. 8-)
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