Corporate News: Japan’s Car Makers Hit the Gas in China
Japanese Car companies have been losing customers in China, therefore Toyota Motor Corp., Nissan Motor Co. and Honda Motor Co. have been releasing their new models in the Shanghai International Automobile Industry Exhibition. Toyota introduced two lower cost vehicles to appeal to current Chinese families while Nissan and Honda introduced new models never before seen in China. If the new sports vehicle or model wasn’t appealing enough, the Car manufacturers are emphasizing better warranties and customer service to build a stronger and more stable perception of their cars. The biggest problem that these Japanese Car companies face is their reputation. The Chinese populous does not like Japanese cars and will even revert to violence toward people that support Japanese companies. For example a Chinese man was beaten in front of his family for driving a Toyota. This strong social pressure has and will continue to lower Japanese exports of vehicles, unless the companies can alter their image for the better.
This affects us directly as Car companies export around the world like many other products and because of this the global economy is very intertwined. If the Japanese Car companies are suffering and lose profits, they could potentially go bankrupt and shift the car market/industry dramatically. I believe by showcasing newer, more innovative models in China while increasing other incentives, they will sell more and eventually win over more of the Chinese population.