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| The Escalation of Trade Friction Leads to the Age of Local Production |
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| The 1980s was the golden age of the Japanese automotive industry. The global share of Japanese automobiles expanded, and Japanese manufacturing systems, as represented by the Toyota Production Method attracted American and European attention. |
Nissan Motor Zama commemoration garage that accommodates many historic or racing cars |
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Trade friction became an issue from the latter part of the 1970s when Japanese automakers greatly increased their share of the U.S. market. Trade friction escalated further in 1980, when the Big Three (GM, Ford and Chrysler) posted massive deficits. Voluntary export restrictions (VER) were brought about in May 1981. As a ceiling was placed on the U.S. export of Japanese automobiles through the VER, Japanese manufacturers maintained their profit margins, on the one hand, by switching from popularly-priced automobiles to mid- to high-end cars, while also successively launching local production in the U.S. |
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| This began in 1982 when Honda started manufacturing its Accord model in Ohio. This was followed in 1983 by Nissan's opening of a plant in Smyrna, Tennessee. In 1984, TMC began local production in California through a joint venture with GM. In the latter part of the 1980s, Mazda launched local production in Michigan, Mitsubishi Motors advanced to Illinois through an alliance with Chrysler, and Fuji Heavy Industries and Isuzu began jointly managed local production in Indiana. Meanwhile, although there had been concern that the domestic market was heading towards maturation, it showed growth through the spread of multiple car ownership. |
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| In the bubble economy of the latter part of the 1980s, sales of even more luxurious cars expanded rapidly. It included the record luxury-class car sales marked by the Nissan Cima, released in January 1988. With the progress of the appreciation of the yen triggered by the Plaza Accord, exports peaked at 7.63 million vehicles in 1985, and fell greatly thereafter. Domestic sales, however, grew from 5.02 million vehicles in 1980 to 7.78 million in 1990. Domestic production also expanded, with a record 13.49 million vehicles produced in 1990. |
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