May 20, 2012

SOME JOBS WHITE PEOPLE JUST WON'T DO:

Drive From The Rising Sun: Why Japan's Car Companies Are Moving Manufacturing Overseas: The fatal brew of the strong yen, Japanese earthquake and aging population (BENJAMIN REEVES, May 19, 2012, IB Times)

Japan's vaunted automakers may soon stop building cars in their homeland for export as a soaring yen combines with Mother Nature's mood swings and an aging population saps the strength of the Nipponese domestic market, driving the companies across the oceans and far from their birthplace.

Last week, Nissan Motor Company Ltd. (Tokyo: 7201) CEO Carlos Ghosn said that the automaker was seeking to "minimize exports from Japan." The very same day, Honda Motor Company Ltd. (NYSE: HMC) announced that it planned to stop exporting hybrids and instead produce them solely in the markets where they are intended to be sold. In 2011, Honda discontinued production of Civic model cars in Japan in favor of international production. And even Mazda Motor Corporation (Tokyo: 7261), which has been slow to set up plants outside of Japan, has recently broken ground on new factories in Mexico to produce Mazda 2 and 3 cars as well as engines.

These moves are a bitter pill for Japan and its foundering economy - and also a peek into Japan's future. Just a few decades ago, when Japanese companies were audaciously acquiring such international icons as Pebble Beach Golf Course and Rockefeller Center, Burberry, Aquascutum, Sun Chemicals and Columbia Studios, fears were rife in the West that Japan was going to dominate the global economy, eclipsing the U.S. in importance and innovation.

Nobody raises those concerns anymore. 

Now they all fret about China, which has almost all the same weaknesses plus many more.
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Posted by at May 20, 2012 9:16 AM
  

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