|
|
 |
|
 |
|
|
|
|
|
|
|
|
| Supply Glut after the Collapse of the Bubble Economy |
|
While the automotive industry had been a symbol of "Japan as No.1," the 10 years following the collapse of the bubble economy became a challenging time for the industry, and a period in which it bided its time toward the coming 21st century. Domestic production, which had hit 7.78 million vehicles in 1990, fell to 6.47 million by 1993. Meanwhile, American automakers had implemented, from the latter part of the 1980s, thorough restructuring, shortening of the development period through the adoption of Japanese systems from the development stage, and revitalization of car designs. Cars emphasizing quality, such as the GM Saturn and Ford Taurus, were launched on the market. In 1993, Chrysler began sales of the Neon, a car that was priced less expensively than Japanese cars, and the company caught up in the American market. In 1994, Japan's export fell below the 5-million-vehicle mark. Domestic production declined heavily due to a slump in domestic demand and exports, and production fell from 13.49 million vehicles in 1990 to 10.55 million in 1994, a drop of more nearly 3 million vehicles.
Mazda's expansion of its Hofu Plant, Nissan's new Kyushu Plant and TMC's new Kyushu Plant - which had been planned during the bubble era - were operating by this time, and added to the surfacing of a supply glut. In 1995, Nissan was forced to close its Zama Plant. |
|
| Global Reorganization Advances; The 11-company Framework in Japan Collapses |
|
| Although Nissan's business performance picked up temporarily, poor sales in the United States became evident in the latter part of the 1990s. As seismic events, such as the financial system unrest of 1997 and the 1998 merger of Germany's Daimler-Benz and America's Chrysler, took place in Japan and abroad, Nissan announced its capital alliance with France's Renault in 1999. |
| Mitsubishi Motors, which had closed in on Nissan at one point through the popularity of its SUV, experienced a slump in U.S. sales, while domestic sales stagnated due to recall issues. As a result, business performance rapidly deteriorated, and Mitsubishi Motors made a decision to come under the umbrella of DaimlerChrysler in 2000. Furthermore, GM lowered its investment ratio in Isuzu and Suzuki, and a capital alliance was formed between GM and Fuji Heavy Industries. As a result of a spate of reorganizations, the map of the industry was transformed. |
|
Used cars for sale |
|
| Since Nissan merged Prince Motors, Ltd. in 1966, the automotive industry in Japan had been a framework led by two major companies. However, the 11-company framework that had continued since then - TMC, Hino, and Daihatsu (the Toyota Group); Nissan, Nissan Diesel Motor Co., Ltd., and Fuji Heavy Industries (the Nissan Group); independents: Honda, Mitsubishi Motors, and Suzuki; and foreign affiliates: Mazda (Ford) and Isuzu (GM) - collapsed. (Note: Mazda came under Ford's umbrella in 1979, and Mitsubishi Motors became independent of Chrysler in 1993) |
|
|
|
|
|
|
