Toyota
Subsidiary Lexus (brand name)
Daihatsu - 51.2%
Hino (truck) - 50.1%
Subaru - 8.7%
Introduction Being the fastest rising star in the industry, Toyota is going to overtake Ford to be the world's second largest car maker in 2005. Now GM is also within reach. Toyota is going stronger and stronger in recent years. At home, its cars engaged 6 of the top 10 places at domestic sales chart in 2004. Its local sales is nearly twice the number of the second place Nissan.
At North America, it is growing quickly and is going to overtake Chrysler soon. Camry has been the region's best selling cars for years, while Lexus is the best selling premium brand.
At Europe, Toyota is gaining momentum like no others. Its French-made Yaris broke into the traditionally closed market and even won European's top award. Now the Czech-built Aygo is going to repeat the success.
Toyota's success is partly due to its care to build quality and service. For many years it used to make boring cars, but people still bought a lot of Toyotas because they had confidence in their quality, reliability and aftersales services. In recent years, Toyota started tactling it weaknesses one by one. Dull-looking cars are replaced by stylish ones (Yaris, bB, Caldina, Celica and new Lexus IS); Dull-driving cars are injected with good dynamics (Altezza), conservative replaced by innovation (Prius). Besides, it also started integrating the excessive platforms in Japan to reduce cost. The process is still on going, so in the foreseeable future Toyota will only get stronger.
Corolla - Toyota's best seller
Sales figure 2004 production figures:
Group: 7,547,000 units, +10.6% from 2003
Toyota: 6,724,000 units, +10.6%
Daihatsu: 730,000 units, +9.8%
Hino: 94,000 units, +12.8%
Location Headquarters : Toyota City, Aichi.
Assembly plants in Japan: mostly in Toyota City
Overseas main plants:
- Australia: Camry, Avalon
- TMMC, Canada: Corolla, Matrix, Lexus RX
- Tianjin, China: Corolla, Vios
- TMMF, France: Yaris
- TPCA, Czech (joint venture with PSA): Aygo
- Indonesia: various
- South Africa: Corolla etc.
- Kuozui, Taiwan: Corolla, Camry
- TMT, Thailand: Corolla, Camry, Vios, Wish
- TMMT, Turkey: Corolla
- Burnaston, UK: Corolla, Avensis
- NUMMI, USA (joint venture with GM): Corolla, Tacoma
- Kentucky, USA: Camry, Avalon, Solara
- Indiana, USA: Tundra, Sienna
R&D center : Toyota City (head office), Higashi-Fuji, Ann Arbor (Michigan, USA)
Proving ground : Shibetsu City
Design studio : Tokyo, Nice (France), Calty (California, USA)
Brief History In 1937, the Toyota Motor Co. Ltd (TMC) was founded by Kiichiro Toyoda as a spin-off from Toyoda Automatic Loom Works. The first car, AA, was launched a year before. It was based on Chrysler Airflow’s design but with some Chevrolet’s input.
But the real growth started in the late 50’s - From 1955 to 1961, production scaled up by 10 folds to 211,000 cars per year. The Crown of 1955 was the first car entirely developed by itself. In 1966, the Corolla was launched as the best seller in its line-up for the following 30 years. In 1972, the company’s annual production exceeded the 1 million mark. The 2 million mark was reached 4 years later. Economy boom during those 2 decades benefited all Japanese car makers, but Toyota’s unique production system, including the "just in time" parts delivering system, established a solid status as Japan’s biggest car maker, consistently beating arch-rival Nissan (Datsun).
The domestic factories in Toyota City reached their peak in 1990, with over 4 million cars produced that year. Hitting by world-wide recession and the call for protectionism in the US, Toyota had to move more production to overseas, mostly in the US, and reduce domestic production. The Camry, being built in the Kentucky plant, became America’s best seller since 1997. The Corolla continues to be the world’s biggest selling car.
The biggest achievement in recent years is the establishment of the Lexus brand, which is a luxurious car division competing with Mercedes and BMW. Launched in 1989, the LS400 immediately outsold its competitors in the US.
Famous models 2000GT - its first sports car
MR2 mk1 - Toyota's version of X1/9, just more successful.
LS400 - Japan's first attempt to challenge Mercedes-Benz. A real success.
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Nissan
Owned by Renault (France) - 44.4 %
Subsidiary Infiniti (Brand name)
Nissan Diesel (truck)
Introduction Under the leadership of Carlos Ghosn, Nissan has successfully restructured, cutting cost and simplifying platforms, returning the highest profit margin in the industry. In 2004, it also re-took the second position of Japanese car makers from Honda.
However, the revival is mainly driven by cost reduction rather than products. Nissan's cars still trail Honda in creativity and quality. Ultra-high commonality in platforms and components led to some identity problems, for example, Tiida looks too much like Renault Megane, while the differences between Maxima and Altima, between Infiniti G35 and M35 are not clear enough. Nissan's products are still not as good as its arch-rival Toyota and Honda. More has to be done in order to maintain its momentum.
Maxima
Sales figure 2004 production: 3,194,119 units, up 8.0%
Location Headquarters : Tokyo
Technical Center : Kanagawa
Proving ground : Hokkaido
Plants in Japan: Oppama, Tochigi, Kyushu, Yokohama, Iwaki.
Overseas facilities:
Technical Center: Farmington Hills (Michigan, USA), Cranfield (UK)
Proving ground: Arizona (USA)
Design studio: San Diego (USA), London (UK)
Main overseas plants:
- Smyrma (Tennesse, USA): Altima, Maxima, Frontier, Xterra
- Canton (USA): Altima, Quest, Titan
- Sunderland (UK): Micra, Almera, Tone, Primera
- Barcelona (Spain): Tino, Terrano
Brief History Nissan's history goes back to the Kwaishinsha Co., an automobile factory started by Masujiro Hashimoto in Tokyo in 1911. Hashimoto was a pioneer in Japan's automotive industry at its inception and throughout its initial years of struggle. In 1914, a box-type small passenger car was completed based on his own design, and in the following year the car made its debut on the market under the name of Dat Car. It is a well-known story that the name Dat represents the first letters of the family names of Hashimoto's three principal backers: Kenjiro Den, Rokuro Aoyama and Meitaro Takeuchi.
Jitsuyo Jidosha Co., Ltd., another predecessor of Nissan, was established in Osaka in 1919 to manufacture three-wheeler designed by American engineer. The company imported machine tools, components and materials from the U.S., and thus was said to be one of the most modern automobile factories. Kwaishinsha Co. and Jitsuyo Jidohsa Co. merged in 1926 to form Dat Jidosha Seizo Co., which, in 1931, became affiliated with Tobata Casting.
Jidosha-Seizo Kabushiki-Kaisha ("Automobile Manufacturing Co., Ltd." in English) was established on 1933, taking over all the operations for manufacturing Datsuns from the automobile division of Tobata Casting, and its company name was changed to Nissan Motor Co., Ltd. on 1934. The compnay had grand plans to mass-produce 10,000 - 15,000 units per year.
The first small-size Datsun passenger car rolled off the assembly line at Yokohama Plant in 1935. During the war, Nissan manufactured military trucks and military engines for plane and boats.
Although the Yokohama Plant had escaped damage during the air raids, over one-half of the plant was requisitioned by the Occupation Forces for approximately ten years after the war. Nissan was also handicapped in the early postwar period by the fact that many leading auto dealerships, previously affiliated with the old Nissan network, switched to the rising Toyota.
Nissan resumed production of trucks in 1945 and Datsun passenger cars in 1947. In a move to recover from the technological vacuum of the wartime years, Nissan concluded a technical tie-up with British car maker Austin in 1952, and produced Austin’s cars. Nissan rebuilt itself simultaneously. The Bluebird and Cedric were launched in ’59 and ’60 respectively. The Sunny of 1966 drove the growth of the domestic small car market. That year, the merge with Prince Motor added the Skyline and Gloria name to its collection.
In 1969, Nissan posted another milestone - the 240Z coupe dominated the US market with its handsome look and good performance. It started the Japanese coupe era and eventually killed the once world-dominating British sports car industry.
Like Honda, the energy crisis in 1973 helped increasing export of the Sunny to the US. Then protectionism drove Nissan to established factory there in 1980. 4 years later, a plant in UK was built to produce the Bluebird for the European market.
In the 90s, domestic recession hit Nissan hard. Conservative product line-up and overlapping models resulted in heavy loss. The debt level was so high that Nissan faced bankruptcy. In 1999, controlling stake was sold to Renault, ending its independence.
Under the leadership of Renault man Carlos Ghosn, Nissan started a reform that cut excessive production capacity and unprofitable models, combined platforms and increased the percentage of common parts. Ghosn also broke Japan's lifetime employment tradition, dismissing underperformed staffs. Within 3 years, "Le Cost Killer" successfully drove the company back to black, and then cleared all the debt in the next 2 years. Ghosn and Nissan became a famous example of reforming Japan's problematic giant enterprizes.
Famous models 240Z - the first Japanese coupe admired by the Wertern
300ZX ('89) - one of the most beautiful Japanese coupes
Skyline GT-R (R32, R33, R34) - technology, speed and handling, all worth full marks.
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Honda
Subsidiary Acura (brand name)
Mugen (racing, tuner)
Introduction Honda is a typical miracle for Japanese industry. Without any help from others, Honda took just 20 years to become one of the world’s most fearsome car makers. It made the best selling car in North America, Accord. It made the first Japanese supercar, NSX. It dominated the Formula One scene for six straight years. It has established an image for advanced technology, reliability and creativity. Today, it is the only independent mainstream car maker securely safe from being took over or merged.
In recent years, Honda showed its vision in the new trend of vehicle and incomparable flexibility - products like CR-V and HR-V caught right on the market demand, while many of these cars are designed to be based on the Civic platform to cut cost. It is the first mass production car maker to be able to build cars with different width and wheelbase on the same production line.
Japanese car makers used to be described as copycats. Honda is an exception. Its cars are usually trend-setting, such as Fit (Jazz), Mobilio, HR-V and Odyssey, have original styling and sometimes employ innovative technologies. This let the company to win in a highly competitive market.
Sales figure 2004 production: 3,181,624 units, up 7.2%
Location Headquarters: Tokyo
Japan production plant: Saitama, Suzuka
R&D center: Wako, Tochigi
Brief History A legendary man created a legendary company. Soichiro Honda was born in a family running a small workshop for repairing bicycles. In 1937, he started his business by making piston rings designed and patented by himself. Interestingly, Toyota, its arch-rival today, held 40% equity in that company and used its piston rings.
Honda Motor Company was founded in 1947 as a motorbike maker, which eventually became the largest motor cycle maker in the world. The first car debuted in the early 60’s, coinciding with Honda’s first taste of Formula One racing in 1964. Soichiro Honda always pushed his men forward, challenging their upper limits. The F1 project gave them valuable experience, and confidence, because they recorded a win in 1965.
The road car business surged in the 70’s following the oil crisis and smog control launched in the US. The Civic was proved to be an economical car and being the first car to pass the emission test without fitting catalytic converter, thanks to the patented CVCC combustion chamber design. Meanwhile, the Accord let the American knew that Japanese cars were not only economical but also reliable and good at every aspect. When the US big 3 realised that, the Accord was climbing to the top of the US sales chart, that was a shock to American.
Facing with the protectionism in the 80’s, Honda enlarged its production in the US. Those plants were set up in the 70’s and was already praised of high efficiency and superior quality control. Eventually, all the cars selling in the US are produced locally and qualified as "domestic car". The protectionism was overcome.
The 80s also saw the investment in British sinking car maker, Rover. Honda built a small plants in UK to make Accord. It also supply engines and various components to Rover 200, 400, 600 and 800, which were derived from Civic / Concerto, Accord and Legend. However, Honda refused to take over Rover, so in 1994, when Honda was facing a sales drop in domestic market, Rover was taken over by BMW.
The history of globalisation stopped there, but the product line-up continued to stun the world. VTEC was first introduced in 1989 in Integra and became standard today. Next year, the first Japanese supercar, NSX, was launched and immediately praised by journalists around the world. On the racing circuits, partnership with Williams and McLaren resulted in 6 consecutive constructor championship from 1986.
Soichiro Honda still tested new models until he was 65, a few years later he retired. At the age of 85, in 1991, he died.
Since 1988, Honda was headed by Nobuhiko Kawamoto, the ex-R&D director has no less influence to the company, transforming the product from engineer-oriented to market-oriented. Therefore after a brief sales crisis in the mid-90s, Honda recovered quickly.
In 1999, for the first time, Honda overtook Nissan to be the second best-selling car maker in Japan.
Famous models S800 - tiny sports car
NSX - the first Japanese mid-engined supercar
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Mitsubishi
Introduction Mitsubishi group was the largest enterprise in Japan and has great influence to the domestic economy. Automobile production is just one of its various businesses. Despite of its strong background, its inflexible management (still loyal to life-time employment) has been proved fail to overcome the economic recession and recorded heavy loss since 1998. A "revival plan" was announced in 1999 but was not successful. The problem was: Mitsubishi still thought itself a big car maker, thus offers a full range of cars, from K-car to luxurious car, but most of the products are just average.
DaimlerChrysler took over the troubled Japanese car maker in 2000. It launched a reform including cutting 9500 staffs (14% work force), closing 1 of the 4 assembly plants, reducing no. of platforms from 12 to 6 and joint-developing cars with Smart and Chrysler. The new Colt drove a comeback in European sales, but sales in USA continued sliding.
But worst of all, in 2000 Mitsubishi was discovered by the Japanese government consealing quality and safety problems of its cars in the past 10 years. This not only involved recalling more than 1 million cars for repairment, customer confidence also dropped to the lowest point.
In 2004, DaimlerChrysler finally sold its 34% stakes back to Mitsubishi, ending the 4-year marriage. At the same time, Mitsubsihi announced another reform plan, cutting 30% staffs and 1 more assembly plant, leaving only 2 plants in Japan. This was described as its last chance for survival.
Sales figure 2004 production: 1.413 million units, down 10.4%.
Location Head office : Tokyo.
R&D center : Nakashinkiri
Plants in Japan : Nagoya-Oye, Nagoya-Okazaki, Mizushima, Kyoto, Kyoto-Shiga.
Plant in US : Bloomington, Illinois.
Plant in Netherlands (Ned Car).
Brief History Mitsubishi group was founded in the early 1870s by Yataro Iwasaki as a shipping company. It grew quickly and diversified its business. Before the broke out of WWII, it had already became one of the biggest firms in Japan. Many warships, tanks and military planes, e.g. the Zero-fighter, were the work of the group.
After the war, it produced 3-wheel mini trucks to meet the demand for the rebuilding Japanese society. When the country’s economy took off in the 60’s, it began producing cars. It wasn’t the earliest Japanese car makers, but it grew rapidly and became independent of the group in 1970. By the 80’s, it had a full range of cars to compete with Toyota and Nissan.
Like other Japanese car makers, it went West in the 80’s. A joint venture with Chrysler in Illinois called Diamond Star was established in 1988. The factory produced Galant, Eclipse, 3000GT and their Chrysler-badged versions until the American car makers sold its stakes in the mid-90s. In 1995, it partnered with Volvo and the Netherlands government to set up Ned Car in Holland, which produced Carisma and S40 for supplying Europe.
In both 1996 and 1997, Mitsubishi works driver Tommi Makinen won them the WRC Driver's Championship.
In 2000, Mitsubishi was troubled by debt and dropping sales, hence accepted the take over by DaimlerChrysler. The latter held a controlling stake of 34%.
In 2001, Ford (now owns Volvo) decided to end S40's production in Ned Car in 2004 thus sold the remaining 50% share to Mitsubishi. It is used to build the new Colt and Smart Forfour.
In 2005, DaimlerChrysler pulled out of the partnership, leaving Mitsubishi alone striking for survival.
Famous models Lancer GSR Evo IV to VII - one of the best point-to-point driver's cars
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Mazda
Owned by Ford - 33.4 %
Introduction Mazda is a rare successful example of Foreign-owned Japanese car maker. Ford took effective control of the company since 1996 after the company got into red for 2 straight years. Initially, Ford's man cut cost by terminating money-losing models and platforms, such as MX-3, the whole Eunos / Xedos brand and luxurious car 929. This reduced its production volume but improved profitability.
Then the company developed Mazda 6, Mazda 2 and Mazda 3 using the same platforms as Ford and Volvo models. This is not to say Mazda loses its own character. On the contrary, Mazda contributed a lot to the development of these platforms (for example, it led the development of the Mazda 6 platform, responsible for the MZR four-cylinder engines that to be used by various models of its mother company). On the other hand, Mazda deliberately tuned its cars sportier than competitors. This successfully established a young and exciting image.
Ford also made best use of the engineering talents of Mazda. It allowed the company to re-introduce rotary engines in the innovative RX-8 four-door coupe and promised the return of RX-7.
Sales figure 2004 production (cars and commercial vehicles): 1.134 million units, up 8.9%.
Location Headquarters: Hiroshima
R&D centers: Hiroshima
Plants in Japan: Hiroshima and Hofu.
Plants in US: AutoAlliance, Michigan (50/50 with Ford, produces Mazda 6 and Ford Fusion / Lincoln Zephyr).
Brief History Mazda was founded in 1920 in the name of "Toyo Kogyo", producing machine tools. In 1931, it started producing 3-wheel truck, but cars came as late as 1960, when R360 Coupe was launched.
From the very beginning of its car operation, it started working on rotary engines (licensed by NSU and Dr. Wankel). Toyo Kogyo knew if they did not have a unique technology, they could have been absorbed by other car makers under the guidance of Japanese government. Therefore during the 60’s and early 70’s they worked hard to improve the rotary engine and eventually making it for mass production.
Their first saloon was launched in 1962, and the brand name "Mazda" had been chosen. 5 years later, the first rotary car, Cosmo coupe, was launched as a small scale production bounded in Japan. The coupe version of the Familia saloon, R100, gained the rotary engine next year. Attack to the US market started in 1970, and rotary engines found prosperity there - 8 years later, the one millionth rotary car was produced. That year also saw the introduction of RX-7.
Following several energy crisis, the hope of rotary-engined mass production cars broke, leaving only the niche RX-7 sports car carried on. Mazda’s fortune in the US also left with the rotary. In 1979, Ford acquired 25% stake in Mazda, starting a joint venture in the US to produce cars for both firms. That venture, AutoAlliance, produced Probe and MX-6 and today still builds Cougar and 626.
In 1984, the company name was formally renamed to Mazda. The trio of saloons, 323, 626 and 929, worked well in the 80’s to push Mazda’s sales up. Before the breakage of bubble economy, Mazda decided to expand its models to premium car market, in other words, following the route of Acura, Lexus and Infiniti. That created Xedos in Europe and Eunos in Asia, both brands share the same cars - the smaller Eunos 500 (Xedos 6) and bigger Eunos 800 (Xedos 9, or Mazda Millenia). Now as you know, the breakage of bubble economy led to the failure of this ambitious project, causing heavy loss and eventually had to seek help from Ford. The latter increased stakes to a third and took the effective control of the Japanese car maker. The independence of Mazda has gone.
The most successful Mazda car is probably the ’89 Miata (MX-5), which is now 10 years old and has past 500,000 units sales mark. It is going to beat MGA/B/C’s all time record for sports car sales.
Another achievement is the Le Mans win in 1991. The Mazda 787B took the first ever win for rotary engine. Also the first win for any Japanese car maker, although with a little bit luck.
amous models RX-7 (mk 1 to mk 3) : the only successful rotary engine car in the world.
MX-5 : one of the greatest roadsters ever made.
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Subaru (Fuji Heavy Industries)
Owned by Toyota - 8.7 %
Introduction No matter in production figure or image, Subaru has beaten Audi as the King of 4-wheel-drive. Today, 75% of the Subaru sold world-wide are equipped with 4-wheel-drive running gear. The importance of 4WD to Subaru is somewhat like the Rotary engine to Mazda, without it the company would have been another undistinguished car maker. However, unlike the rotary engine, 4WD catches the love affair of SUV very well, enable Subaru to make the beloved Forester easily. Therefore, despite of the not-so-high volume, Subaru is still safe from take over in the mean time.
The product line-up is simple but well-positioned : it has R1 / R2 to cover the K-car market; the Impreza is well established as the ultimate driver’s car; the Legacy’s emphasis on estate (wagon) version should gave it an edge over competitors; the Forester SUV has already proved a success in the US. Subaru is healthier than ever.
Sales figure FY2004 production: 557,000 cars
Location Headquarters: Tokyo
Main production plant: Gunma
Brief History Fuji Heavy Industries was established by the merge of 6 companies in 1953, hence the six-stars logo using today. The name "Subaru" is actually the brand name rather than the division’s name for its cars. In Japan, people calls the cars "Fuji" instead of "Subaru".
It introduced the first production car, 360, in 1958. It was a mini economy car and immediately earned the company reputation. The first 4WD car was launched in 1972, but during the 80’s it was more famous with the ECVT. A loose partnership with Nissan did not help it much, neither did the XT and SVX coupes. It was rally which made the medium car maker famous to the world. The Impreza WRX took the company 3 straight WRC manufacturer title between 1995 and 97.
In 1999, General Motors acquired 20% of Fuji Heavy Industries and became the largest individual share holder. But the unique boxer engine and 4WD system of Subaru's cars prevent further collaboration between the two company's model programs.
In 2005, GM finally sold off its stakes in Subaru to Toyota.
Famous models Impreza WRX - one of the best A-to-B cars
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Suzuki
Owned by General Motors - 20%
Subsidiary Daewoo - 14.9%
Introduction Like Honda, Suzuki has equal success in car and motorbike business. Unlike Honda, Suzuki’s car division produces mostly small cars (in other words, K-car) and small off-roader. This gave it an edge during economic recession. In FY2004, Suzuki produced close to 2 million cars, placing it higher than Mitsubishi, Mazda, Subaru, Isuzu and Daihatsu in sales chart. In other words, it just trails Toyota, Honda and Nissan.
Suzuki formed a strategy alliance with GM in the 90s. This let its small cars to be sold in USA as Chevrolet and in Europe as Opel / Vauxhall. In 2004, it invested in Daewoo, GM's Korean subsidiary, allowing it to sell Daewoo's larger car in the America under the Suzuki badge.
Wagon R
Sales figure FY2004 (ended Mar 2004) automobile production: 1.927 million units
Location Headquarters: Takatsuka
R&D centers: Yokohama and Miyakoda.
4 automobile plants in Japan: Kosai (passenger cars assembly and components), Iwata (commercial vehicles and 4x4s assembly), Sagara (engines and castings) and Osuka (castings).
Brief History In 1911, Michio Suzuki established his company as a manufacturer for textile looms. 40 years later, when the world-wide cotton market collapsed, Suzuki decided to diversify his products, the most successful was motorcycle. In 1954, the company was producing 6,000 motorcycles per month and became one of the biggest motorcycle maker.
Next year saw the first car produced, Suzulight. However, the early Suzuki car division made name by creating the first small 4wd off-roader in Japan, the LJ10. Since then it continued to introduced many small off-roaders. The first K-car, Alto, was launched in 1979. It also set the trend for Suzuki’s products today.
Famous models Nil
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Daihatsu
Owned by Toyota - 51.2 %
Introduction Like Suzuki, Daihatsu is renowned for being small car specialists. They are always competing to be the largest volume K-car makers. Daihatsu is increasingly integrated into the Toyota empire, as the latter has increased its ownership in Daihatsu from 34.5% to 51.2% in 1998. The purchase complement Toyota’s vacancy in the K-car category.
Sales figure 2004 production: 730,000 units, +9.8%
Location Headquarters : Daihatsu-cho, Ikeda-shi, Osaka.
Plant : Ikeda (Mira, Cuore, Move), Shiga (Sirion, Applause, Move), Kyoto (Charade, Gran Move).
Brief History The forerunner of Daihatsu, Hatsudoki Seizo, started produced engines in early of the century, then produced 3-wheeler in 1930. The name Daihatsu was used since 1951, still making tricycles to meet the basic demand from the post-WWII Japan. The Charade was launched in 1977 as the first successful car, then comes Cuore (’84), its first K-car, and Rocky (’84), the first small SUV.
Famous models Nil
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Subsidiary Lexus (brand name)
Daihatsu - 51.2%
Hino (truck) - 50.1%
Subaru - 8.7%
Introduction Being the fastest rising star in the industry, Toyota is going to overtake Ford to be the world's second largest car maker in 2005. Now GM is also within reach. Toyota is going stronger and stronger in recent years. At home, its cars engaged 6 of the top 10 places at domestic sales chart in 2004. Its local sales is nearly twice the number of the second place Nissan.
At North America, it is growing quickly and is going to overtake Chrysler soon. Camry has been the region's best selling cars for years, while Lexus is the best selling premium brand.
At Europe, Toyota is gaining momentum like no others. Its French-made Yaris broke into the traditionally closed market and even won European's top award. Now the Czech-built Aygo is going to repeat the success.
Toyota's success is partly due to its care to build quality and service. For many years it used to make boring cars, but people still bought a lot of Toyotas because they had confidence in their quality, reliability and aftersales services. In recent years, Toyota started tactling it weaknesses one by one. Dull-looking cars are replaced by stylish ones (Yaris, bB, Caldina, Celica and new Lexus IS); Dull-driving cars are injected with good dynamics (Altezza), conservative replaced by innovation (Prius). Besides, it also started integrating the excessive platforms in Japan to reduce cost. The process is still on going, so in the foreseeable future Toyota will only get stronger.
Corolla - Toyota's best seller
Sales figure 2004 production figures:
Group: 7,547,000 units, +10.6% from 2003
Toyota: 6,724,000 units, +10.6%
Daihatsu: 730,000 units, +9.8%
Hino: 94,000 units, +12.8%
Location Headquarters : Toyota City, Aichi.
Assembly plants in Japan: mostly in Toyota City
Overseas main plants:
- Australia: Camry, Avalon
- TMMC, Canada: Corolla, Matrix, Lexus RX
- Tianjin, China: Corolla, Vios
- TMMF, France: Yaris
- TPCA, Czech (joint venture with PSA): Aygo
- Indonesia: various
- South Africa: Corolla etc.
- Kuozui, Taiwan: Corolla, Camry
- TMT, Thailand: Corolla, Camry, Vios, Wish
- TMMT, Turkey: Corolla
- Burnaston, UK: Corolla, Avensis
- NUMMI, USA (joint venture with GM): Corolla, Tacoma
- Kentucky, USA: Camry, Avalon, Solara
- Indiana, USA: Tundra, Sienna
R&D center : Toyota City (head office), Higashi-Fuji, Ann Arbor (Michigan, USA)
Proving ground : Shibetsu City
Design studio : Tokyo, Nice (France), Calty (California, USA)
Brief History In 1937, the Toyota Motor Co. Ltd (TMC) was founded by Kiichiro Toyoda as a spin-off from Toyoda Automatic Loom Works. The first car, AA, was launched a year before. It was based on Chrysler Airflow’s design but with some Chevrolet’s input.
But the real growth started in the late 50’s - From 1955 to 1961, production scaled up by 10 folds to 211,000 cars per year. The Crown of 1955 was the first car entirely developed by itself. In 1966, the Corolla was launched as the best seller in its line-up for the following 30 years. In 1972, the company’s annual production exceeded the 1 million mark. The 2 million mark was reached 4 years later. Economy boom during those 2 decades benefited all Japanese car makers, but Toyota’s unique production system, including the "just in time" parts delivering system, established a solid status as Japan’s biggest car maker, consistently beating arch-rival Nissan (Datsun).
The domestic factories in Toyota City reached their peak in 1990, with over 4 million cars produced that year. Hitting by world-wide recession and the call for protectionism in the US, Toyota had to move more production to overseas, mostly in the US, and reduce domestic production. The Camry, being built in the Kentucky plant, became America’s best seller since 1997. The Corolla continues to be the world’s biggest selling car.
The biggest achievement in recent years is the establishment of the Lexus brand, which is a luxurious car division competing with Mercedes and BMW. Launched in 1989, the LS400 immediately outsold its competitors in the US.
Famous models 2000GT - its first sports car
MR2 mk1 - Toyota's version of X1/9, just more successful.
LS400 - Japan's first attempt to challenge Mercedes-Benz. A real success.
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Nissan
Owned by Renault (France) - 44.4 %
Subsidiary Infiniti (Brand name)
Nissan Diesel (truck)
Introduction Under the leadership of Carlos Ghosn, Nissan has successfully restructured, cutting cost and simplifying platforms, returning the highest profit margin in the industry. In 2004, it also re-took the second position of Japanese car makers from Honda.
However, the revival is mainly driven by cost reduction rather than products. Nissan's cars still trail Honda in creativity and quality. Ultra-high commonality in platforms and components led to some identity problems, for example, Tiida looks too much like Renault Megane, while the differences between Maxima and Altima, between Infiniti G35 and M35 are not clear enough. Nissan's products are still not as good as its arch-rival Toyota and Honda. More has to be done in order to maintain its momentum.
Maxima
Sales figure 2004 production: 3,194,119 units, up 8.0%
Location Headquarters : Tokyo
Technical Center : Kanagawa
Proving ground : Hokkaido
Plants in Japan: Oppama, Tochigi, Kyushu, Yokohama, Iwaki.
Overseas facilities:
Technical Center: Farmington Hills (Michigan, USA), Cranfield (UK)
Proving ground: Arizona (USA)
Design studio: San Diego (USA), London (UK)
Main overseas plants:
- Smyrma (Tennesse, USA): Altima, Maxima, Frontier, Xterra
- Canton (USA): Altima, Quest, Titan
- Sunderland (UK): Micra, Almera, Tone, Primera
- Barcelona (Spain): Tino, Terrano
Brief History Nissan's history goes back to the Kwaishinsha Co., an automobile factory started by Masujiro Hashimoto in Tokyo in 1911. Hashimoto was a pioneer in Japan's automotive industry at its inception and throughout its initial years of struggle. In 1914, a box-type small passenger car was completed based on his own design, and in the following year the car made its debut on the market under the name of Dat Car. It is a well-known story that the name Dat represents the first letters of the family names of Hashimoto's three principal backers: Kenjiro Den, Rokuro Aoyama and Meitaro Takeuchi.
Jitsuyo Jidosha Co., Ltd., another predecessor of Nissan, was established in Osaka in 1919 to manufacture three-wheeler designed by American engineer. The company imported machine tools, components and materials from the U.S., and thus was said to be one of the most modern automobile factories. Kwaishinsha Co. and Jitsuyo Jidohsa Co. merged in 1926 to form Dat Jidosha Seizo Co., which, in 1931, became affiliated with Tobata Casting.
Jidosha-Seizo Kabushiki-Kaisha ("Automobile Manufacturing Co., Ltd." in English) was established on 1933, taking over all the operations for manufacturing Datsuns from the automobile division of Tobata Casting, and its company name was changed to Nissan Motor Co., Ltd. on 1934. The compnay had grand plans to mass-produce 10,000 - 15,000 units per year.
The first small-size Datsun passenger car rolled off the assembly line at Yokohama Plant in 1935. During the war, Nissan manufactured military trucks and military engines for plane and boats.
Although the Yokohama Plant had escaped damage during the air raids, over one-half of the plant was requisitioned by the Occupation Forces for approximately ten years after the war. Nissan was also handicapped in the early postwar period by the fact that many leading auto dealerships, previously affiliated with the old Nissan network, switched to the rising Toyota.
Nissan resumed production of trucks in 1945 and Datsun passenger cars in 1947. In a move to recover from the technological vacuum of the wartime years, Nissan concluded a technical tie-up with British car maker Austin in 1952, and produced Austin’s cars. Nissan rebuilt itself simultaneously. The Bluebird and Cedric were launched in ’59 and ’60 respectively. The Sunny of 1966 drove the growth of the domestic small car market. That year, the merge with Prince Motor added the Skyline and Gloria name to its collection.
In 1969, Nissan posted another milestone - the 240Z coupe dominated the US market with its handsome look and good performance. It started the Japanese coupe era and eventually killed the once world-dominating British sports car industry.
Like Honda, the energy crisis in 1973 helped increasing export of the Sunny to the US. Then protectionism drove Nissan to established factory there in 1980. 4 years later, a plant in UK was built to produce the Bluebird for the European market.
In the 90s, domestic recession hit Nissan hard. Conservative product line-up and overlapping models resulted in heavy loss. The debt level was so high that Nissan faced bankruptcy. In 1999, controlling stake was sold to Renault, ending its independence.
Under the leadership of Renault man Carlos Ghosn, Nissan started a reform that cut excessive production capacity and unprofitable models, combined platforms and increased the percentage of common parts. Ghosn also broke Japan's lifetime employment tradition, dismissing underperformed staffs. Within 3 years, "Le Cost Killer" successfully drove the company back to black, and then cleared all the debt in the next 2 years. Ghosn and Nissan became a famous example of reforming Japan's problematic giant enterprizes.
Famous models 240Z - the first Japanese coupe admired by the Wertern
300ZX ('89) - one of the most beautiful Japanese coupes
Skyline GT-R (R32, R33, R34) - technology, speed and handling, all worth full marks.
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Honda
Subsidiary Acura (brand name)
Mugen (racing, tuner)
Introduction Honda is a typical miracle for Japanese industry. Without any help from others, Honda took just 20 years to become one of the world’s most fearsome car makers. It made the best selling car in North America, Accord. It made the first Japanese supercar, NSX. It dominated the Formula One scene for six straight years. It has established an image for advanced technology, reliability and creativity. Today, it is the only independent mainstream car maker securely safe from being took over or merged.
In recent years, Honda showed its vision in the new trend of vehicle and incomparable flexibility - products like CR-V and HR-V caught right on the market demand, while many of these cars are designed to be based on the Civic platform to cut cost. It is the first mass production car maker to be able to build cars with different width and wheelbase on the same production line.
Japanese car makers used to be described as copycats. Honda is an exception. Its cars are usually trend-setting, such as Fit (Jazz), Mobilio, HR-V and Odyssey, have original styling and sometimes employ innovative technologies. This let the company to win in a highly competitive market.
Sales figure 2004 production: 3,181,624 units, up 7.2%
Location Headquarters: Tokyo
Japan production plant: Saitama, Suzuka
R&D center: Wako, Tochigi
Brief History A legendary man created a legendary company. Soichiro Honda was born in a family running a small workshop for repairing bicycles. In 1937, he started his business by making piston rings designed and patented by himself. Interestingly, Toyota, its arch-rival today, held 40% equity in that company and used its piston rings.
Honda Motor Company was founded in 1947 as a motorbike maker, which eventually became the largest motor cycle maker in the world. The first car debuted in the early 60’s, coinciding with Honda’s first taste of Formula One racing in 1964. Soichiro Honda always pushed his men forward, challenging their upper limits. The F1 project gave them valuable experience, and confidence, because they recorded a win in 1965.
The road car business surged in the 70’s following the oil crisis and smog control launched in the US. The Civic was proved to be an economical car and being the first car to pass the emission test without fitting catalytic converter, thanks to the patented CVCC combustion chamber design. Meanwhile, the Accord let the American knew that Japanese cars were not only economical but also reliable and good at every aspect. When the US big 3 realised that, the Accord was climbing to the top of the US sales chart, that was a shock to American.
Facing with the protectionism in the 80’s, Honda enlarged its production in the US. Those plants were set up in the 70’s and was already praised of high efficiency and superior quality control. Eventually, all the cars selling in the US are produced locally and qualified as "domestic car". The protectionism was overcome.
The 80s also saw the investment in British sinking car maker, Rover. Honda built a small plants in UK to make Accord. It also supply engines and various components to Rover 200, 400, 600 and 800, which were derived from Civic / Concerto, Accord and Legend. However, Honda refused to take over Rover, so in 1994, when Honda was facing a sales drop in domestic market, Rover was taken over by BMW.
The history of globalisation stopped there, but the product line-up continued to stun the world. VTEC was first introduced in 1989 in Integra and became standard today. Next year, the first Japanese supercar, NSX, was launched and immediately praised by journalists around the world. On the racing circuits, partnership with Williams and McLaren resulted in 6 consecutive constructor championship from 1986.
Soichiro Honda still tested new models until he was 65, a few years later he retired. At the age of 85, in 1991, he died.
Since 1988, Honda was headed by Nobuhiko Kawamoto, the ex-R&D director has no less influence to the company, transforming the product from engineer-oriented to market-oriented. Therefore after a brief sales crisis in the mid-90s, Honda recovered quickly.
In 1999, for the first time, Honda overtook Nissan to be the second best-selling car maker in Japan.
Famous models S800 - tiny sports car
NSX - the first Japanese mid-engined supercar
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Mitsubishi
Introduction Mitsubishi group was the largest enterprise in Japan and has great influence to the domestic economy. Automobile production is just one of its various businesses. Despite of its strong background, its inflexible management (still loyal to life-time employment) has been proved fail to overcome the economic recession and recorded heavy loss since 1998. A "revival plan" was announced in 1999 but was not successful. The problem was: Mitsubishi still thought itself a big car maker, thus offers a full range of cars, from K-car to luxurious car, but most of the products are just average.
DaimlerChrysler took over the troubled Japanese car maker in 2000. It launched a reform including cutting 9500 staffs (14% work force), closing 1 of the 4 assembly plants, reducing no. of platforms from 12 to 6 and joint-developing cars with Smart and Chrysler. The new Colt drove a comeback in European sales, but sales in USA continued sliding.
But worst of all, in 2000 Mitsubishi was discovered by the Japanese government consealing quality and safety problems of its cars in the past 10 years. This not only involved recalling more than 1 million cars for repairment, customer confidence also dropped to the lowest point.
In 2004, DaimlerChrysler finally sold its 34% stakes back to Mitsubishi, ending the 4-year marriage. At the same time, Mitsubsihi announced another reform plan, cutting 30% staffs and 1 more assembly plant, leaving only 2 plants in Japan. This was described as its last chance for survival.
Sales figure 2004 production: 1.413 million units, down 10.4%.
Location Head office : Tokyo.
R&D center : Nakashinkiri
Plants in Japan : Nagoya-Oye, Nagoya-Okazaki, Mizushima, Kyoto, Kyoto-Shiga.
Plant in US : Bloomington, Illinois.
Plant in Netherlands (Ned Car).
Brief History Mitsubishi group was founded in the early 1870s by Yataro Iwasaki as a shipping company. It grew quickly and diversified its business. Before the broke out of WWII, it had already became one of the biggest firms in Japan. Many warships, tanks and military planes, e.g. the Zero-fighter, were the work of the group.
After the war, it produced 3-wheel mini trucks to meet the demand for the rebuilding Japanese society. When the country’s economy took off in the 60’s, it began producing cars. It wasn’t the earliest Japanese car makers, but it grew rapidly and became independent of the group in 1970. By the 80’s, it had a full range of cars to compete with Toyota and Nissan.
Like other Japanese car makers, it went West in the 80’s. A joint venture with Chrysler in Illinois called Diamond Star was established in 1988. The factory produced Galant, Eclipse, 3000GT and their Chrysler-badged versions until the American car makers sold its stakes in the mid-90s. In 1995, it partnered with Volvo and the Netherlands government to set up Ned Car in Holland, which produced Carisma and S40 for supplying Europe.
In both 1996 and 1997, Mitsubishi works driver Tommi Makinen won them the WRC Driver's Championship.
In 2000, Mitsubishi was troubled by debt and dropping sales, hence accepted the take over by DaimlerChrysler. The latter held a controlling stake of 34%.
In 2001, Ford (now owns Volvo) decided to end S40's production in Ned Car in 2004 thus sold the remaining 50% share to Mitsubishi. It is used to build the new Colt and Smart Forfour.
In 2005, DaimlerChrysler pulled out of the partnership, leaving Mitsubishi alone striking for survival.
Famous models Lancer GSR Evo IV to VII - one of the best point-to-point driver's cars
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Mazda
Owned by Ford - 33.4 %
Introduction Mazda is a rare successful example of Foreign-owned Japanese car maker. Ford took effective control of the company since 1996 after the company got into red for 2 straight years. Initially, Ford's man cut cost by terminating money-losing models and platforms, such as MX-3, the whole Eunos / Xedos brand and luxurious car 929. This reduced its production volume but improved profitability.
Then the company developed Mazda 6, Mazda 2 and Mazda 3 using the same platforms as Ford and Volvo models. This is not to say Mazda loses its own character. On the contrary, Mazda contributed a lot to the development of these platforms (for example, it led the development of the Mazda 6 platform, responsible for the MZR four-cylinder engines that to be used by various models of its mother company). On the other hand, Mazda deliberately tuned its cars sportier than competitors. This successfully established a young and exciting image.
Ford also made best use of the engineering talents of Mazda. It allowed the company to re-introduce rotary engines in the innovative RX-8 four-door coupe and promised the return of RX-7.
Sales figure 2004 production (cars and commercial vehicles): 1.134 million units, up 8.9%.
Location Headquarters: Hiroshima
R&D centers: Hiroshima
Plants in Japan: Hiroshima and Hofu.
Plants in US: AutoAlliance, Michigan (50/50 with Ford, produces Mazda 6 and Ford Fusion / Lincoln Zephyr).
Brief History Mazda was founded in 1920 in the name of "Toyo Kogyo", producing machine tools. In 1931, it started producing 3-wheel truck, but cars came as late as 1960, when R360 Coupe was launched.
From the very beginning of its car operation, it started working on rotary engines (licensed by NSU and Dr. Wankel). Toyo Kogyo knew if they did not have a unique technology, they could have been absorbed by other car makers under the guidance of Japanese government. Therefore during the 60’s and early 70’s they worked hard to improve the rotary engine and eventually making it for mass production.
Their first saloon was launched in 1962, and the brand name "Mazda" had been chosen. 5 years later, the first rotary car, Cosmo coupe, was launched as a small scale production bounded in Japan. The coupe version of the Familia saloon, R100, gained the rotary engine next year. Attack to the US market started in 1970, and rotary engines found prosperity there - 8 years later, the one millionth rotary car was produced. That year also saw the introduction of RX-7.
Following several energy crisis, the hope of rotary-engined mass production cars broke, leaving only the niche RX-7 sports car carried on. Mazda’s fortune in the US also left with the rotary. In 1979, Ford acquired 25% stake in Mazda, starting a joint venture in the US to produce cars for both firms. That venture, AutoAlliance, produced Probe and MX-6 and today still builds Cougar and 626.
In 1984, the company name was formally renamed to Mazda. The trio of saloons, 323, 626 and 929, worked well in the 80’s to push Mazda’s sales up. Before the breakage of bubble economy, Mazda decided to expand its models to premium car market, in other words, following the route of Acura, Lexus and Infiniti. That created Xedos in Europe and Eunos in Asia, both brands share the same cars - the smaller Eunos 500 (Xedos 6) and bigger Eunos 800 (Xedos 9, or Mazda Millenia). Now as you know, the breakage of bubble economy led to the failure of this ambitious project, causing heavy loss and eventually had to seek help from Ford. The latter increased stakes to a third and took the effective control of the Japanese car maker. The independence of Mazda has gone.
The most successful Mazda car is probably the ’89 Miata (MX-5), which is now 10 years old and has past 500,000 units sales mark. It is going to beat MGA/B/C’s all time record for sports car sales.
Another achievement is the Le Mans win in 1991. The Mazda 787B took the first ever win for rotary engine. Also the first win for any Japanese car maker, although with a little bit luck.
amous models RX-7 (mk 1 to mk 3) : the only successful rotary engine car in the world.
MX-5 : one of the greatest roadsters ever made.
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Subaru (Fuji Heavy Industries)
Owned by Toyota - 8.7 %
Introduction No matter in production figure or image, Subaru has beaten Audi as the King of 4-wheel-drive. Today, 75% of the Subaru sold world-wide are equipped with 4-wheel-drive running gear. The importance of 4WD to Subaru is somewhat like the Rotary engine to Mazda, without it the company would have been another undistinguished car maker. However, unlike the rotary engine, 4WD catches the love affair of SUV very well, enable Subaru to make the beloved Forester easily. Therefore, despite of the not-so-high volume, Subaru is still safe from take over in the mean time.
The product line-up is simple but well-positioned : it has R1 / R2 to cover the K-car market; the Impreza is well established as the ultimate driver’s car; the Legacy’s emphasis on estate (wagon) version should gave it an edge over competitors; the Forester SUV has already proved a success in the US. Subaru is healthier than ever.
Sales figure FY2004 production: 557,000 cars
Location Headquarters: Tokyo
Main production plant: Gunma
Brief History Fuji Heavy Industries was established by the merge of 6 companies in 1953, hence the six-stars logo using today. The name "Subaru" is actually the brand name rather than the division’s name for its cars. In Japan, people calls the cars "Fuji" instead of "Subaru".
It introduced the first production car, 360, in 1958. It was a mini economy car and immediately earned the company reputation. The first 4WD car was launched in 1972, but during the 80’s it was more famous with the ECVT. A loose partnership with Nissan did not help it much, neither did the XT and SVX coupes. It was rally which made the medium car maker famous to the world. The Impreza WRX took the company 3 straight WRC manufacturer title between 1995 and 97.
In 1999, General Motors acquired 20% of Fuji Heavy Industries and became the largest individual share holder. But the unique boxer engine and 4WD system of Subaru's cars prevent further collaboration between the two company's model programs.
In 2005, GM finally sold off its stakes in Subaru to Toyota.
Famous models Impreza WRX - one of the best A-to-B cars
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Suzuki
Owned by General Motors - 20%
Subsidiary Daewoo - 14.9%
Introduction Like Honda, Suzuki has equal success in car and motorbike business. Unlike Honda, Suzuki’s car division produces mostly small cars (in other words, K-car) and small off-roader. This gave it an edge during economic recession. In FY2004, Suzuki produced close to 2 million cars, placing it higher than Mitsubishi, Mazda, Subaru, Isuzu and Daihatsu in sales chart. In other words, it just trails Toyota, Honda and Nissan.
Suzuki formed a strategy alliance with GM in the 90s. This let its small cars to be sold in USA as Chevrolet and in Europe as Opel / Vauxhall. In 2004, it invested in Daewoo, GM's Korean subsidiary, allowing it to sell Daewoo's larger car in the America under the Suzuki badge.
Wagon R
Sales figure FY2004 (ended Mar 2004) automobile production: 1.927 million units
Location Headquarters: Takatsuka
R&D centers: Yokohama and Miyakoda.
4 automobile plants in Japan: Kosai (passenger cars assembly and components), Iwata (commercial vehicles and 4x4s assembly), Sagara (engines and castings) and Osuka (castings).
Brief History In 1911, Michio Suzuki established his company as a manufacturer for textile looms. 40 years later, when the world-wide cotton market collapsed, Suzuki decided to diversify his products, the most successful was motorcycle. In 1954, the company was producing 6,000 motorcycles per month and became one of the biggest motorcycle maker.
Next year saw the first car produced, Suzulight. However, the early Suzuki car division made name by creating the first small 4wd off-roader in Japan, the LJ10. Since then it continued to introduced many small off-roaders. The first K-car, Alto, was launched in 1979. It also set the trend for Suzuki’s products today.
Famous models Nil
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Daihatsu
Owned by Toyota - 51.2 %
Introduction Like Suzuki, Daihatsu is renowned for being small car specialists. They are always competing to be the largest volume K-car makers. Daihatsu is increasingly integrated into the Toyota empire, as the latter has increased its ownership in Daihatsu from 34.5% to 51.2% in 1998. The purchase complement Toyota’s vacancy in the K-car category.
Sales figure 2004 production: 730,000 units, +9.8%
Location Headquarters : Daihatsu-cho, Ikeda-shi, Osaka.
Plant : Ikeda (Mira, Cuore, Move), Shiga (Sirion, Applause, Move), Kyoto (Charade, Gran Move).
Brief History The forerunner of Daihatsu, Hatsudoki Seizo, started produced engines in early of the century, then produced 3-wheeler in 1930. The name Daihatsu was used since 1951, still making tricycles to meet the basic demand from the post-WWII Japan. The Charade was launched in 1977 as the first successful car, then comes Cuore (’84), its first K-car, and Rocky (’84), the first small SUV.
Famous models Nil
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