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from Global Investing:

Route 312 – China’s Route 66

The world's largest car market, China, with a population of 1.3 billion people and an emerging middle class, holds great potential for investors and consumers alike with annual growth rates in the auto sector expected to hold at around 23 percent to 2017, according to Alliance Bernstein Asset Managers.

Joint ventures (JV), the most popular structure for foreign firms investing in the automobile sector in the world's largest car market, are set to capitalise on a growing consumer base in a country with 3.3 million kilometres of asphalt. Traversing the so-called 'mother' road 312 (China's route 66) is becoming more of an attainable dream for the Chinese consumer.

VW has a JV with Changchun-based FAW, Dongfeng with Nissan, GAC with Toyota and  Honda. There are many investment opportunities, though a constantly changing sectoral environment and risks of mechanical recalls can cause sharp fluctuations as in any market, according to Bernstein Research, a subsidiary of Alliance Bernstein holdings.

China now has some 21,100 dealers nationwide, more than the United States (17,500), Germany (12,900), and the UK (4,700) in absolute numbers. Domestic dealers are overshadowed by international brands in the larger cities. The next step is for the international JV-backed dealers to make regional expansion where domestic dealers are currently concentrated.

from Breakingviews:

Japan Inc’s earnings tell worrisome global story

By Wayne Arnold

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

At first glance Japan Inc’s earnings look dazzling. Operating profits at the country’s four biggest manufacturers quintupled in the latest quarter, relative to same period last year. Growth in the U.S. and a post-tsunami rebound in Japan overwhelmed the drag from weaker economies in Europe and China. But the message is actually more sobering: the buffer from such slow-growth economies is unlikely to last.

from Raw Japan:

Yes, there is a difference between American and Japanese cars

By Bob Lutz
The opinions expressed are his own.

A lot of words have been written in the past few post-tsunami weeks about the negative impact of the disastrous tragedy on the short-term future of Japanese cars in the U.S. market. In parallel, many articles proclaim this to be a “historical window of opportunity” for the “Detroit Three,” now able to deliver to waiting customers an abundant supply of new vehicles while, at Toyota, Honda and Nissan, the cupboard is bare.

It’s telling that we’re *not* hearing the Japanese-brands inspired propaganda offensive of a few years back, when the media duly repeated that “there is no longer such a thing as an American car or a Japanese car.” The Japanese, it was stated, now all have plants in the U.S., whereas most U..S companies import components from the Far East, or Latin America,  thus compromising the promise of saving U.S. jobs. For buyers with a patriotic streak, it was all-American-apple-pie-OK to buy a Japanese brand, these being “just as American” as a Ford, Chevrolet, Dodge or Jeep. The (then) World’s Smartest and Finest Car Company, Toyota, even placed ads asking who’s more American? Toyota USA, adding manufacturing jobs and plants in the U.S., or the Detroit Three, busily, at that time, laying off workers and shuttering plants?

from MediaFile:

Tech wrap: EBay sues Google in mobile payment war

EBay and its online payment unit, PayPal, sued Google and two executives for stealing trade secrets related to mobile payment systems, highlighting the growing battle between companies vying for a major stake in what has been described as a $1 trillion opportunity. The two executives, Osama Bedier and Stephanie Tilenius, were formerly with PayPal and led the launch on Thursday of Google's own mobile payment system in partnership with MasterCard, Citigroup and Sprint.

The personal information of more than 283,000 customers at Honda Canada was breached, the company confirmed on Friday. The company said the stolen data included names, addresses, vehicle identification numbers and in some cases financing account numbers, but was not the type that would typically be used for identity theft or fraud.

from DealZone:

Deals wrap: Brokers sharpen elbows

A traffic light is pictured beside the Wall Street road sign in the financial district of New York September 19, 2008. REUTERS/Lucas Jackson Corporate broking relationships are experiencing a shake-up this year as relative newcomers and smaller advisors look to grow by charming disillusioned clients from rivals.

Two fledgling European clearing houses, EMCF and EuroCCP, are in merger talks as they face the prospect of increasing competition from larger rivals, three industry sources with knowledge of the matter said.

from Shop Talk:

Check Out Line: End of “cheap” labor in China?

foxconn1Check out workers in China angling for a bigger slice of the economic pie.

The labor unrest that began in China's richer areas among foreign firms is now spreading to poorer, interior regions, as a new generation of workers seek a bigger portion of the nation's growing wealth. What impact could that have on companies that have flocked over the decades to China, drawn by the low manufacturing and labor costs, as well as one of the world's biggest and fastest growing economies?

Japanese automaker Honda and iPhone maker Foxconn International have dealt with high-profile strikes recently, and now a Taiwanese sports goods supplier and a Japanese sewing machine maker, both some distance from China's wealthier regions around Hong Kong and Shanghai, have seen worker strikes. Resolutions of strikes at Honda and Foxxconn resulted in pay raises of 66 percent and 20 percent, respectively.

from Russell Boyce:

The politics of a Japanese bow – How low do you go?

                                                                                   By  Michael Caronna In Japan nothing says I’m sorry like a nice, deep bow, and lately there’s been a whole lot to be sorry for.  Ideally the depth of the bow should match the level of regret, allowing observers to make judgments about how sincere the apology really is. Facing massive recalls Toyota President Akio Toyoda faced journalists at a news conference.   TOYOTA/    Toyota Motor Corp's managing director Yuji Yokoyama (R) bows after submitting a document of a recall to an official of the Transport Ministry Ryuji Masuno (2nd R) at the Transport Ministry in Tokyo February 9, 2010. Toyota Motor Corp is recalling nearly half a million of its flagship Prius and other hybrid cars for braking problems, a third major recall since September and a further blow to the reputation of the world's largest automaker.      REUTERS/Toru Hanai   TOYOTA/   Toyota Motor Corp President Akio Toyoda bows at the start of a news conference in Nagoya, central Japan February 5, 2010. Toyota Motor Corp President Toyoda apologised on Friday for a massive global recall that has tarnished the reputation of the world's largest car maker. REUTERS/Kim Kyung-Hoon

TOYOTA/

Toyota Motor Corp President Akio Toyoda (L) and Executive Vice President Shinichi Sasaki (2nd L) attend a news conference in Nagoya, central Japan February 5, 2010. Toyota Motor Corp President Toyoda apologised on Friday for a massive global recall that has tarnished the reputation of the world's largest car maker. REUTERS/Yuriko Nakao

from Russell Boyce:

The politics of bowing in Japan – How low do you go?

By Michael Caronna, Chief Photographer Japan

In Japan nothing says I'm sorry like a nice, deep bow, and lately there's been a whole lot to be sorry for. Ideally the depth of the bow should match the level of regret, allowing observers to make judgements about how sincere the apology really is. Facing massive recalls Toyota President Akio Toyoda and Toyota Motor Corp's managing director Yuji Yokoyama faced journalists at separate news conferences.

TOYOTA/

Toyota Motor Corp's managing director Yuji Yokoyama (R) bows after submitting a document of a recall to an official of the Transport Ministry Ryuji Masuno (2nd R) at the Transport Ministry in Tokyo February 9, 2010. Toyota Motor Corp is recalling nearly half a million of its flagship Prius and other hybrid cars for braking problems, a third major recall since September and a further blow to the reputation of the world's largest automaker.      REUTERS/Toru Hanai

from Raw Japan:

The politics of bowing in Japan – How low do you go?

[CROSSPOST blog: 557 post: 125]

Original Post Text:
By Michael Caronna, Chief Photographer Japan

In Japan nothing says I'm sorry like a nice, deep bow, and lately there's been a whole lot to be sorry for. Ideally the depth of the bow should match the level of regret, allowing observers to make judgements about how sincere the apology really is. Facing massive recalls Toyota President Akio Toyoda and Toyota Motor Corp's managing director Yuji Yokoyama faced journalists at separate news conferences.

from Shop Talk:

Auto show-Click and buy? Not yet…

honda1(Written by correspondent James Kelleher)

The U.S. auto retail market -- long controlled by franchised dealers and state laws that critics call anti-competitive and inefficient -- will open up in the coming years and Honda will not be left in the dust, a top U.S. executive for the Japanese automaker said. 

Honda has already been confronted by the new paradigm in the retail motorcycle market, where upstart rivals from rapidly emerging nations have begun selling bikes directly to consumers -- or very nearly so -- using sporting goods stores and other unconventional channels, John Mendel, executive vice president of auto sales at American Honda Motor Co, said at a conference held in conjunction with the Detroit auto show.

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