Shipment of 36,000 Toyota Prius Hybrids arriving at Long Beach, California.
U.S. exports from Japanese auto plants in the U.S. and Japanese purchases of U.S. automotive parts, many of them from relocated Japanese suppliers, are at an all-time high, according to the Japan Automobile Manufacturers Association. The percentage of Japanese-brand vehicles sold in the U.S. produced in North America has reached a record high of 70% as well.
The news comes as trade tensions are rising between the U.S. and Japan over Japan’s manipulation of the Yen by keeping it artificially low to boost sales of Japanese products while blocking imports into Japan.
Last month at hearings in Washington, JAMA said it “strongly supports the Trans-Pacific Partnership as well as Japan’s participation in it.”
The Obama Administration is attempting to cut a side deal with Japan, one that critics say will cost the U.S. more jobs. The negotiations are being conducted in private. Ford Motor Company in particular is opposed to the manipulation of the Yen, with CEO Alan Mulally publicly speaking out against it, mirroring Red Poling’s complaints of decades ago.
The core problem is Japan does not want to fix the sluggish demand in its own economy as illustrated by the so-called lost decade of the 1990s, a senior GM economist told AutoInformed at the CAR Management Briefing seminars. Instead, Japan wants to use artificially less expensive exports to prop up its economy and compensate for lack of demand at home. This is an economic problem that can be fixed if the political will exists to finally address the underlying issues.
JAMA said in 2012:
- Percent of Japanese-Brand Vehicles Sold in the U.S. produced in North America: 70% (all-time high) 2011: 68%
- Japanese Purchases of U.S. Auto Parts: $51.28 b (all-time high) 2011: $43.24b
- U.S. Exports from Japanese U.S.: 335,680 (all-time high) 2011: 259,908
- Japanese U.S. Production: 2012: 3,295,000, 2011: 2,423,000
- Exports from Japan to U.S.: 2012: 1,698,000, 2011: 1,427,000
