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)
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.”
Mazda Switching to Direct
Injection
While green machines didn’t
dominate the floor at Makuhari Messe the way they have in years past, automakers
from
Japan and abroad certainly didn’t
ignore the issues of mileage and emissions. Mazda CEO Hisakuzu Imaki opened his
company’s press conference by promising to “pursue” direct injection gasoline
technology, which could soon dominate the Japanese maker’s powertrain lineup. DI
systems inject fuel directly into the cylinder to improve the combustion
process, boosting both performance and mileage, while lowering emissions. Mazda,
added Imaki, is developing a “smart” engine stop/start system that will go into
mass production “in three years.” It’s also set to begin testing of a new hybrid
powertrain system developed by its
U.S. affiliate, Ford Motor Co. A
prototype, hydrogen-powered version of the RX-8 sports car will go into limited
leasing next year, while a hydrogen-fueled version of the Premacy is under
development, as well, according to Imaki.
Infiniti: Slow and Measured
Roll-Out
Nissan’s luxury brand, Infiniti,
is beginning a slow and measured global roll-out. It recently entered the South
Korean market, and is now on sale in parts of the
Mideast. Russian distribution will begin by mid-2006. But
despite the push by Lexus, the luxury division operated by Nissan’s arch-rival,
Toyota, there’s no need to
hurry up, said Carlos Ghosn. The Nissan CEO said there are a number of steps
still needed to build up the Infiniti brand, including new product and an
increased emphasis on customer service and satisfaction. An entrance into the
tough Western European and Japanese markets, then will not occur, said Ghosn,
“until after 2008.”
Separately, Ghosn said he is
rethinking plans to bring the Renault brand back to the
United States.
The executive assumed dual titles earlier this year, when he was also named CEO
of Nissan’s French affiliate, Renault. Ghosn’s predecessor had been hoping to
re-enter the American market by 2010, but “for the moment,” said Ghosn, “I have
no plans for the
U.S.” Bringing Renault back will
require some serious planning and execution, he explained. “To go to the
U.S., you have
to commit your soul, your money and your dreams.”
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