Raw Japan

Slices of Japanese business, politics and life

Jun 20, 2011 10:29 EDT
Bob Lutz

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?

Fast-forward to the earthquake and tidal wave of 2011: the allegedly red-white-and blue Japanese brands suddenly find their supply lines dried up, while the supposedly import-component laden domestic cars, (albeit with some minor work-around shortages) continue to deliver a river of new vehicles, unabated. And, thus, another popular myth bites the dust.

In the past months the Detroit Three have, in fact, come roaring back. The Chevrolet Malibu, the 2007 “Car of the Year,” has shouldered past the Japanese brands and is now the number one car in the mid-size segment. Even more astonishing is the Chevrolet “Cruze,” a best seller around the world, and now America’s number one compact car, relegating the perennial favorites, Honda Civic and Toyota Corolla, to the runner-up spots.

Will all this Detroit resurgence be reversed when Japanese car supplies build up again? I predict it will not.

The current weakness of the Japanese brands goes beyond the natural catastrophe that slowed output. The roots of the end of the nation’s infatuation with Japanese cars go way deeper; more profound, underlying factors are at work. The manifest ineptness on the part of Toyota in dealing with the unintended acceleration crisis has permanently taken that company from “God-like” to “just another good car company.” They, and other Japanese brands, have also suddenly developed a curious inability to produce winning designs. Gone are the Hondas that scream “buy me” thanks to their lovely proportions and superb interior: evidence of the cost-cutting now abounds.

COMMENT

America should be proud that American car companies are rebounding, that GM is #1 in the two largest markets in the world, China and the U.S. and will be #1 globally again in 2011.

GM is expected to sell on the order of 2.5 to 3 million more vehicles than Toyota globally in 2011, reclaiming #1 in the world, over 1 million ahead of #2 VW.

GM has generated $Billions in profits for 5 successive quarters, $3.5B last quarter alone. The company has received no additional government funding since the capital invested to finance the bankruptcy in 2009, all but $26.5B of which has been returned through loan repayments and stock sale in the IPO.
If the remaining government stake were sold at today’s price (down along with Ford and the auto sector), taxpayers will have lost around $10-12B. A lot of money, but to bring perspective, a few days interest on our national debt, about $2 or $3 out of the pocket of most taxpayers.
Meanwhile GM is resurgent, hiring engineers and other workers and investing over $5B in capital improvements in America in 2010 and 2011 with cash generated by the business, while maintaining hundreds of thousands of good paying jobs which many communities across the midwest depend upon.

Posted by DanDetroit | Report as abusive
Apr 7, 2011 13:01 EDT

from Ben Gruber:

My experience covering Japan’s earthquake and tsunami.

People have been asking me about my recent coverage of the earthquake and tsunami in Japan, wondering what sticks out in my memory. After some reflection, one part of my experience keeps rising to the top - the mountain tunnels.

The Reuters multimedia team was based in the north-east town of Tono, a small mountain town situated above the coastline. Tono had an eerie feeling to it, almost all of the shops and restaurants were closed. But you wouldn't know the town had been rocked by a massive earthquake. There were no physical signs.

Every morning we would wake up early and pile into cars for the drive down to the coast.

To get from Tono to the coastal areas you need to drive through several massive tunnels, some stretching as long as 5kms. These tunnels would normally be well lit and ventilated but that wasn't the case any longer. They were pitch black inside and even with the windows shut tight; you couldn't help but get extremely nauseous from petrol fumes.

In my mind the tunnels were like gateways. When you enter, you leave behind Japan's picturesque mountain country and drive through a void that seems to never end. When you finally see the light on the other side you are greeted by a scene that can only be described as an apocalyptic nightmare. No matter how many times I made this trip, the scene that awaited me on the other end of the tunnels never ceased to amaze me in the worst way possible.

You have all seen the images. Whole towns washed away and massive ships amid debris where those towns should have been. Thousands of survivors piled into shelters still very much in shock. You ask these kind people how they are coping. What will they do? Nine times out of ten, the answer was "I don't really know".

Jul 30, 2010 01:24 EDT

from Global News Journal:

Japan PM under fire — from his wife

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Japanese Prime Minister Naoto Kan faces plenty of grilling from the opposition camp but his toughest critic might be the one he calls "the opposition party within his own household" -- his wife.

"Since I know him very well, I wonder -- is it okay that this person is prime minister?" Nobuko Kan, Naoto's wife of 40 years, writes in her new book titled "What on earth will change in Japan now you are prime minister?"

The 64-year-old Nobuko -- who calls herself "Japan's most nagging voter" -- also reveals in the book that her husband is a terrible cook and has given up on studying English, and she pooh-poohs his fashion sense, describing how he once got caught walking around in public with a price tag sticking out of his sleeve.

Ouch.

"I am too scared to read it," the prime minister, a 63-year-old former grassroots activist, admitted to reporters when asked about his wife's book about their life together.

The book may not be the best way to cheer up her husband, whose support rate has been sliding since his ruling Democratic Party got clobbered in this month's upper house election.  Kan faces a tough balancing act trying to rein in Japan's huge debt while getting the wobbly economy back on track.

Jul 28, 2010 11:14 EDT

from Photographers Blog:

This job stinks

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As a photographer, I have the privilege to encounter rare glimpses of the strange and unusual. Most of the time I am thankful to get such an assignment but this particular one turned out to be a mixture of delight and displeasure.

The subject was a Titan arum, or Amorphophallus titanium, one of the world’s largest and rarest plants, which was blooming for the first time in nearly 20 years at a botanical garden in Tokyo. The first visitors lined up from 6:30 am and by the time the gate opened at 10 am, 1600 people had formed a long queue despite the sweltering Tokyo summer heat. The excited crowd was attracted by extensive TV coverage and in the newspaper about this unusual flower that only blooms for two days after taking 16 years to grow from a seedling.

Press were allowed special access to skip the long line and duck under the ropes surrounding the flower to get a close-up shot. At first glimpse, I was surprised to see the 1.5 meter (4.9 feet) tall flower, as it was nothing like any flower I had ever seen before. However, the next moment I stood atop the ladder to get a close up shot, the surprise turned into dismay as a foul odor emanating from the blossom stung my nose. The flower's rotten garbage-like smell was enhanced by the high humidity and the hot temperature. I quickly snapped a few shots as I held my breath and then put some distance between myself and the flower to catch my breath. I repeated this dance a few times: Hold breath, approach flower, take shots, and retreat. Meanwhile, the gate opened and visitors who’d been waiting for hours flocked towards the gigantic flower. They pushed and shoved to take pictures of the plant and sometimes shouts were heard as people squashed each other.

After looking at the enthusiasm of the visitors and thinking that it would be another 20 years before I could photograph this flower blooming again, I forgot about the bad smell and muggy heat and came to think I was very lucky to have encountered this odd plant.

COMMENT

Thanks for the blog Yuriko. It reminded me of when I searched for and found the equally stinky Rafflesia plant in the rain forests of Malaysia.

Posted by Cropperboyce | Report as abusive
Jul 12, 2010 02:56 EDT

from Global News Journal:

Japan voters seek change, may get chaos

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Five years ago, Japanese voters seeking change from stale politics and a stagnant economy backed maverick leader Junichiro Koizumi's calls for reform, handing his Liberal Democratic Party (LDP) a huge win in an election for parliament's powerful lower house.

Two years, several scandals and one incompetent prime minister later, they dealt the same LDP a stinging setback in a 2007  upper house election, creating a "Twisted Parliament" where the upper chamber could stall bills and delay policies.

The gridlock toppled the LDP's Shinzo Abe and his successor,  each after about a year in office, and finally last summer the same electorate -- still longing for something new and better -- swept the novice Democratic Party of Japan (DPJ) to power, ending more than half a century of almost non-stop LDP rule and ejecting  Taro Aso from the PM's seat. The DPJ, voters hoped, would make good on promises to change how Japan was governed, ending bureaucratic control of policies, and somehow ensuring that Japan emerged from two decades of the doldrums.

Now, after less than a year  of chaotic policymaking,  indecisive leadership and more scandals under DPJ premier  Yukio Hatoyama, followed by sudden talk of a sales tax hike from former grassroots activist Naoto Kan, who took over when Hatoyama suddenly quit,  frustrated voters did it again.

On Sunday, they delivered a harsh rebuke to the DPJ and a tiny ally, depriving them of an upper house majority and setting the stage for another bout of deadlock as Japan struggles to engineer growth in a fast-ageing society and curb a gigantic public debt.

"Voters were not trying to create political confusion, but that is the result," said independent political analyst Hirotaka Futatsuki, adding that calls for a snap lower house election that might not solve anything would grow. No lower house poll need be held until 2013.

Scenarios abound for possible ways out of the political bind.

Jul 9, 2010 03:57 EDT

from Global News Journal:

Japan’s not-so-hot election

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Candidates on the campaign trail in Japan are sweating through the summer heat but voters have been cool towards this Sunday's upper house election.

Sure, the government won't change because the ruling Democratic Party will still control the more powerful lower house.

But the election matters because failure for the Democrats to win a majority would split parliament and stall policymaking, blocking Prime Minister Naoto Kan's pledge to cut Tokyo's huge public debt, create jobs and fix the creaking social security system.

So why aren't voters fired up? For one, the campaign has been pretty dull.

Rules require media to give equal coverage to all the political parties -- not great for viewership when there are more than 10 of them. TV debates have had no fewer than seven party leaders arguing over issues ranging from the economy to diplomacy.

The debates are squeezed into shows lasting an hour or less, and include brief intervals showing pre-recorded comments from other party heads. Even Yasuo Tanaka, leader of New Party Nippon with just one seat in parliament, gets air time.

Jun 30, 2010 11:31 EDT

from Photographers Blog:

Samurais in South Africa

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I arrived in South Africa with the Japan team filled with excitement and an acute feeling of anxiety. Never mind that I would be on the scene to cover the world's biggest sporting event, and never mind that I would be competing against the top sports photographers from around the globe to get the best pictures. For a Reuters photographer like myself dedicated to a single team, when your team drops out of the competition, you're finished. Like the defeated team, you go back to the hotel, pack your bags and spend the long flight home wondering what went wrong. Based on Japan's lackluster showing in the East Asia Soccer Championship my expectation for Japan was three defeats in a row and no victories. Mine would be a short stay in South Africa.

But during Japan's first match against Cameroon the Samurai Blue seemed to transform themselves in front of my eyes with Keisuke Honda’s goal being the catalyst. Japan was defeated by the Netherlands in their second match but the Samurais demonstrated the unity of the team in their performance and they were victorious against Denmark in their third match. In doing so they completely wiped out the image that I held of the Japan team before going into the competition. I was covering the world's biggest sporting event, and I was going up against the top sports photographers, but in this World Cup Japan's victory meant that the formidable teams of France and Italy and the even more formidable photographers accompanying them were going home. Not me.

On June 29, 2010, Japan faced Paraguay in World Cup match 55. Even after extra time the game remained scoreless and a penalty shoot-out would determine the outcome. I moved into position according to the instructions of Chief Photographer UK and Ireland Dylan Martinez, the leader of the Reuters photographers for this match.

A penalty shoot-out is all about luck. The psychologically intense method of deciding a match seems especially hard on the players, but it's just as tough on the photographers with a split second making the difference between front pages around the world or a postage stamp-sized picture on page S15. Both the players and the photographers tuned out the screaming of the crowd and focused with tense stillness on the battle between the penalty kicker and the goalkeeper. My position was on the opposite side of the pitch allowing me to see the face of the goalkeeper. Japan’s goalkeeper Eiji Kawashima, who had saved many shots up to then, clearly showed the strain. Following the two successful shots by both teams it was Yuichi Komano, Japan’s third kicker’s turn.

COMMENT

I don’t care for football but I do like good photography. Cheers.

Posted by Torkel | Report as abusive
May 31, 2010 15:11 EDT

from Photographers Blog:

Cheering on an aging Japan

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When I first heard there was a 78-year old cheerleader in Japan who wears metallic silver wigs and waves gold pom-poms as she jumps and dances in her shiny red sequined costume, it instantly made me curious to find out what kind of person she is.

Everyone knows by now that people in Japan live a long time. According to the World Health Organization's latest life expectancy figures Japanese women remain at number one (life expectancy: 86 years), but I had never heard of an 80-year-old cheerleader.

Fumie Takino’s way of life seemed to be the key.

My first encounter with her was at her gymnasium, which takes her an hour to get to by bus and train. Upon meeting her I was immediately struck by her big smile and how open she was to let me photograph her practice session with her teammates.

Takino started her cheerleading group, “Japan Pom Pom,” 15 years ago and now the members’ average age is 66. The group all looked like typical Japanese seniors until they changed into their practice outfits and danced to a pulsating musical beat, jumping and kicking their legs.

COMMENT

EVEN THE YOUNG PEOPELE NOT DOING THIS ,,,

Posted by jodigliani | Report as abusive
Apr 12, 2010 11:42 EDT

from Global News Journal:

Remembering Hiro’s gentle smile

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As Hiro Muramoto headed out the door of the Tokyo newsroom last week, weighed down with TV equipment on his way to Bangkok to cover demonstrations, he flashed a smile at a Reuters colleague.

It was, she remembers, a "Hiro" smile. It was gentle, rather than a broad grin, and it showed the 43-year-old was pleased once again to take his expertise on the road to do his job telling the world what was going on.

It was doing that job that cost him his life as he was killed, along with 20 others, during a sudden burst of violence during the protests in central Bangkok on Saturday night.

Hiro was not the gung-ho war correspondent of the movies. He was a careful, loving married Dad of two and a gentle mentor for young colleagues and an expert story teller.

He took his concern for those around him beyond the newsroom to complete two 100-km charity walks (with a third planned this month), raising thousands of dollars for Oxfam along with teammates from Thomson Reuters.

At Reuters for more than a decade and a half, Hiro was witness to many of Asia's biggest stories. His work brought to viewers around the world the sounds and images of events ranging from Asian financial crises to political protests and the 2002 World Cup.

He was trained and experienced in operating in hostile environments, including the aftermath of the 2004 Indian Ocean tsunami and Philippine military operations against insurgents on Jolo island.

COMMENT

Violence achieve nothing but lost of lives and more anger. It was indeed a privilege meeting him in the Philippines way back and now I sit back and think if all the work and life we give in the profession we chose are all worth it. I hope the stories that we make can be enough to change the world to what it should be.

Posted by NewsMole | Report as abusive
Apr 12, 2010 08:14 EDT

from Reuters Editors:

Another dreadful loss in the Reuters family

The following is the text of a staff email sent this morning by Editor-in-Chief David Schlesinger.

The news that our colleague, Hiro Muramoto, was shot and killed covering the violence in Bangkok broke on Saturday.

Once more the cause and profession of journalism has claimed a life.

He died for the story. That is not a price we ever want to pay.

There is no more important cause for us as a company and for us as professionals than journalistic safety.

To have Hiro die just after we watched on the newly leaked video the 2007 deaths of our colleagues Namir Noor-Eldeen and Saeed Chmagh is devastating to me; I’m sure most of you feel similar emotions.

We know that covering the story forces us to rush towards danger when others rush away. We know that death can come from anywhere. We know how dangerous the places we cover are.

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