2005 Tokyo Motor Show, Part III

By TCC Team

TCC Team

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TCC's Auto Show Index by TCC Team (10/3/2005)
Our coverage of the world's major auto shows, year to year.

2005 Tokyo Motor Show Index by TCC Team (10/18/2005)

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Japanese Wary of Detroit Woes

If Japanese automakers are gloating over the problems facing their American rivals, they’re certainly not doing it in public. The topic arose repeatedly during conversations around Makuhari Messe, the sprawling suburban convention center where virtually every major executive of the Japanese auto industry gathered on Wednesday. “I didn’t expect Ford and GM to be in this bad a state,” admitted Takeo Fukui, CEO of Honda Motor Co. As for Toshiyuki Shiga, chief operating officer at Nissan, he does “not believe (the Big Two) are on the verge of bankruptcy,” but added, “we’re not underestimating the situation.” There was no clear consensus on how to respond, especially to recent problems at U.S. suppliers, such as the bankrupt Delphi Corp. Japanese makers are definitely concerned about the possibility of supply chain disruptions, now that they’re using more American-made parts to supply their “transplant” assembly lines. Fukui suggested that in the long run, companies such as Delphi, Ford and GM “need to go through this competition to be stronger as an organization.” But Nissan’s Shiga echoed an equally common sentiment among Japanese executives. “If a big wave came, it would not be favorable to a small boat,” he said, likening Nissan to the vulnerable craft. A potential political backlash seems unlikely, other Japanese officials privately suggested, but not out of the question if it were to cost a large number of U.S. jobs.

Ford Not Interested In Alliance

Ford Motor Co. is not looking for a merger partner or any other alliance as a way to solve its current fiscal problems, declared the automaker’s COO, Jim Padilla. In an interview with TheCarConnection.com, the Ford executive insisted, “People underestimate how difficult it is to make a relationship work.” There’s certainly pressure on Ford to solve its problems, Padilla agreed, “but you can’t assume there’s a panacea out there.” Padilla’s comments come as word of possible alliance talks flow through the industry’s chatty, global rumor mill. Most often, such gossip seems to link Ford with Nissan, the Japanese turnaround company. For his part, Nissan CEO Carlos Ghosn insisted such talk is just that. At the same time, he said the company “is open” to a potential alliance. It already proved that such deals really can work, with its French ally Renault getting credit for helping revive Nissan’s flagging fortunes. But there are no plans, nor discussions underway, Ghosn quickly added.

Ghosn, Ghosn, NOT Ghone

Ford CEO Bill Ford has acknowledged approaching senior executives at several rival companies about joining the beleaguered Detroit manufacturer. That apparently includes Dieter Zetsche, the former Chrysler CEO soon to be chairman of DaimlerChrysler AG. But whether Ford has also tried to tap the widely hailed Nissan/Renault CEO, Carlos Ghosn, is apparently a matter of debate. The jet-setting Ghosn said “rumors of my leaving Nissan and Renault are unfounded,” though he declined to specifically deny any effort to recruit him. “Approaches are not always direct,” he said, somewhat cryptically. “I like what I’m doing,” he added, “and see no need to change.” Some observers have speculated that with Nissan on the mend, Ghosn might seek other challenges, but he emphasized that “I think Nissan has more potential to deliver.”