Japanese Automakers are famous for their outstanding quality, fuel efficiency of their Japanese- Motors, durability and appealing design. Most automotive analysts will agree to this. If you see the stock prices of most Japanese Automakers like Honda, Toyota, Nissan , Isuzu and Subaru in the United States, it will reflect their strong growth. Most Japanese Automakers faced hurdles due to Tsunami in Japan and floods in Thailand but now most manufacturers are producing vehicles in other countries. Shipments from other countries have almost doubled. In the past it was impossible to believe that Japanese people will never buy goods made in other countries. These days Japanese-bound goods are being manufactured overseas for Japanese market. Most Automotive manufacturers, even companies like Kubota who is one of the largest manufacturer of farm tractors makes tractors in Thailand and also in United States. Japanese have been very stubborn and it was difficult for them to even think of producing elsewhere. Detroit motor companies have been manufacturing in Mexico for last 5 decades, German manufacturers do the same in Eastern Europe. In the last two years Japanese have changed because they were forced to come up with a better solution to increase profitability or lose the race. Stronger Japanese Yen, Tsunami in Japan and cheaper labor in China and India have forced them to look elsewhere. Japanese Automakers are now beginning to look at another avenue. Most have increased their production in China and Thailand. The downside of this outcome is unemployment in Japan because many factories are closing in Japan and moving overseas to reduce cost of production. This will indeed increase profitability of the manufacturers in Japan and they will remain competitive.
Japanese Motors that go in Japanese vehicles, all engine components and basically every step of manufacturing is expanding overseas these days. The reason being stronger Japanese Yen. For more information, browse through the website or follow us on Twitter.