Automobile Precision Instruments Top News 5 Page  1   2   3   4   5   6   7   8    Metamorphosis into a Global Company through the Expansion and Reinforcement of Local Production    As the value of the yen appreciated to a level below 90 yen to the dollar at one point, the Japan-U.S. auto talks broke down in 1995, and Japanese automakers were driven into a situation wherein the U.S. announced a list of sanctions on Japan (i.e. imposition of a tariff duty of 100 percent on 13 Japanese luxury-car models). The sanctions on Japan were circumvented by the Global Plan, which were voluntary business plans established by TMC, Nissan, Honda, Mazda and Mitsubishi.    In the beginning, it was thought that the enhancement of production capacities in North America and the expansion of the sourcing of foreign-made parts that were contained in the voluntary plan would place a burden on Japanese manufacturers. But, in reality, it provided a favorable opportunity for Japanese automakers to metamorphose into global companies. In addition to enhancing the production capacities of existing plants, TMC and other Japanese manufacturers not only reinforced local production but also began strengthening local production of important parts such as engines. TMC's advance to Indiana and Honda's advance to Alabama are two examples.    What should be noted here is that the car models that Japanese automakers decided to manufacture in new plants or expanded production lines were luxury cars - which had been the realm of expertise of the Big Three U.S. auto manufacturers - as well as SUVs, including pickup trucks. This enabled Japanese automakers to lay out a way to counter the pursuit by American manufacturers, whose mainstream products were SUVs. Furthermore, the Global Plan allowed Japanese automakers to strengthen their management base by commencing local production of important parts.