The Japanese automotive industry enjoyed spectacular success in the 1980s. This was largely due to the so-called 'Lean Production System' - the combination of an efficient production system, an effective supplier system, and a product development system. In the 1990s the industry fell on hard times because of the Japanese asset price bubble and extreme currency appreciation. In this book, eminent industry specialist Koichi Shimokawa draws on his thirty years of research and fieldwork with Japanese and American firms, to show how the Japanese automotive industry has managed to recover from this difficult period. He shows how firms like Toyota were able to transfer Japanese systems to overseas plants and how they have changed in order to compete in increasingly globalized markets. In addition, the book also addresses the two major challenges to the current industry model: the rise of China and the environmental and energy supply situation.

As the University of Michigan Center for Japanese Studies reflected on the deteriorating position of the domestic auto industry in the fall of 1980, and the strong competitive threat being posed by the Japanese automakers, we were struck by the extraordinary low quality of the public discussion of these critical issues. The national importance of the issues seemed only matched by the superficiality of the analyses being offered. The tendency to think in terms of scapegoats was particularly evident. The Japanese as the basic cause of our problems has been a particularly notable theme. To be sure, cooperation with the Japanese in formulating a rational overall trade policy may be an important part of the solution. It has also been fashionable to blame it all on American auto industry management for not concentrating on the production of small cars when "everyone knew" that was the thing to do. Alternatively, government meddling was blamed for all our problems. Clearly, the complex problem we faced required more penetrating analyses. It seemed therefore, that the time was ripe for a public seminar which moved beyond the rhetoric of the moment and probed some of the deeper causes of our problems and possible directions for future policy. In holding the January 1981 auto conference, the Center took it as their task to begin addressing the critical issues facing the industry, with particular, but not exclusive, attention to examining the role of the Japanese auto industry. They had in mind not to simply conduct a rational discussion of the trade issue but to probe the sources of Japanese competitive strength, especially those features whose study might profit them. In these proceedings, they bring those discussions to a wider audience. Question and answer sessions at the conference were necessarily short and a few speakers delivered abbreviated remarks; this volume restores a number of omissions, and provides additional answers to some pertinent questions put by the audience. The Center hopes to encourage the serious problem-solving these complex issues demand. Far too much time has been spent trying to fix the blame. [intro]

This study chronicles the success of the Japanese car in America. Starting with Japan's first gasoline-powered car, the Takuri, it examines early Japanese inventors and automotive conditions in Japan; the arrival of Japanese cars in California in the late 1950s; consumer and media reactions to Japanese manufacturers; what obstacles they faced; initial sales; and how the cars gained popularity through shrewd marketing. Toyota, Honda, Datsun (Nissan), Mazda, Subaru, Isuzu, and Mitsubishi are profiled individually from their origins through the present. An examination follows of the forced cooperation between American and Japanese manufacturers, the present state of the industry in America, and the possible future of this union, most importantly in the race for a more environmentally-sound vehicle.

Cognitive-strategic capabilities of a country are decisive for overcoming the strong path dependence in climate-related policies and to achieve ecological and economic modernization. This is the result of a unique comparison approach focusing on four highly intertwined policy areas (Automobiles, Nuclear Energy, Renewables and Rare Earth) in Japan and Germany. Both countries have in principle sufficient economic, technological and institutional capacities for an ecological transformation, but they are lacking an integrated policy strategy to mobilize and organize the existing capacities in favor of structural changes. The focused four policy areas are analyzed in depth and compared by experts from political science.

Despite the economic and political importance of the U.S.-Japan relationship and the extensive attention paid to automotive trade, few American scholars or policy makers are familiar with the history of Japanese government-business relations, either generally or for specific industries such as passenger cars. This book hopefully helps in a small way to fill that gap in our knowledge and, thus, to help strengthen the foundation from which we make public policy decisions about bilateral trade. [ix]