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Time of India
04-07-2025
- Automotive
- Time of India
Japan's carmakers absorbing tariffs may bolster Trump position
Japanese carmakers have largely absorbed the cost of US President Donald Trump 's tariffs on auto imports, a move that may undermine the Asian nation's negotiating power ahead of a July 9 deadline that will see duties rocket even higher. So far, just three of Japan's six major automakers have raised prices in the US, and only Subaru Corp.'s hike has come close to the 25% tariff imposed on imported vehicles. Toyota Motor Corp., the world's No. 1 carmaker, only lifted prices on some models by a few hundred dollars while Mitsubishi Motors Corp . increased prices by an average of just 2.1% across three models. The average price of a new car in the US rose 2.5% in April to about $48,700. The modest nature of the changes signals Japan's carmakers are reluctant to pass the hit on to consumers. But it's a decision that could backfire. Sparing American shoppers any kind of extreme sticker shock means Trump is less likely to change course. Auto tariffs have emerged as a key sticking point in bilateral negotiations between the US and Japan as Trump fixates on US deficits in the sector while Japan tries to safeguard one of its main economic powerhouses. Live Events Despite Japan's chief trade negotiator Ryosei Akazawa holding a seventh round of talks with US counterparts, the two countries remain at loggerheads and the clock is ticking: Across-the-board levies of 24% on Japanese goods are set to come into effect next Wednesday. Trump's even suggested they could be as high as 35%. Industry watchers say an extended stalemate may force Japanese carmakers' hands, with an ultimately beneficial outcome. 'If prices continue to rise due to Trump's tariffs, the government will realise it's not a simple scenario where raising tariffs benefits the US economy,' Takeshi Miyao, an analyst at automotive consultancy Carnorama, said. 'This may lead to changes in tariff negotiations.' Japan's cautious approach contrasts with the quick retaliation by China, which leveraged its dominance in industries like e-commerce to make it clear to Trump that American consumers would be footing the bill. Some products sold on platforms like PDD Holdings Inc.-owned Temu and Shein Group Ltd. nearly doubled in price in the wake of fresh duties. Tokyo, for its part, has maintained its stance that it will try to settle all the tariff disputes in one go. Akazawa has made clear that despite the looming July 9 deadline, he won't be pressured into a deal. The protracted negotiations make it more likely Japan's carmakers will turn to price increases in the US to minimise the impact on their bottom lines. Those hikes could start when manufacturers offer upgraded specifications on models, Bloomberg Intelligence senior analyst Tatsuo Yoshida said. Still, any price increases are likely to be phased in gradually, and it could take as long as three to four years for a 25% levy to be reflected in vehicle prices, he said. While the consensus is that some level of tariffs on cars will be inevitable, a lower 10% tariff may be more palatable. The auto industry is a bellwether for wage trends and generates around 10% of gross domestic product. The sector also accounts for one-third of Japan's exports to the US. 'There's no reason to continue cutting profits indefinitely to offset high tariffs when it's unclear how long this situation will persist,' Carnorama's Miyao said.
Japan Today
08-05-2025
- Automotive
- Japan Today
Mitsubishi, Nissan eye joint production to mitigate U.S. tariffs
Mitsubishi Motors Corp said Thursday it is considering jointly producing sport utility vehicles with Nissan Motor Co at a Nissan plant in the United States, in a bid to ease the impact of U.S. President Donald Trump's tariff policies. Mitsubishi currently ships vehicles from Japan for sale in the U.S. market. President Takao Kato said at a press conference that local production is essential to selling cars in the country. The plan calls for the two Japanese automakers to jointly invest in an existing Nissan plant to produce new vehicles, but Mitsubishi has not disclosed details such as the investment amount or the production start date. U.S. tariffs have also impacted Mitsubishi's earnings outlook, with operating profit for the fiscal year through next March projected to fall 28 percent from a year earlier to 100 billion yen ($691 million). Tokyo has been seeking the full removal of "reciprocal" tariffs, in addition to an extra 25 percent levy on cars and a 25 percent duty on steel and aluminum. © KYODO
Bloomberg
18-02-2025
- Automotive
- Bloomberg
Mitsubishi Motors Climbs on News Honda Open to More Nissan Talks
Shares of Mitsubishi Motors Corp. surged as much as 8.6%, the most in two months, after a report that Honda Motor Co. would be willing to restart talks on a potential tie-up with ailing peer Nissan Motor Co. if its CEO Makoto Uchida steps down. Mitsubishi, which has been considering getting involved in the carmakers' possible integration, was the Nikkei 225's top performer as at 12:31 p.m. in Tokyo. Nissan's stock also rose as much as 5.8% on the report.
Boston Globe
13-02-2025
- Automotive
- Boston Globe
Japanese automakers Honda, Nissan, and Mitsubishi drop their talks on a business integration
Mitsubishi Motors Corp. had said it was considering joining that group. From the start, the effort had analysts puzzled as to the advantages to any of the companies, as their model lineups and strengths overlap in an industry shaken by the arrival of powerful newcomers like Tesla and BYD, as well as the move to electrification. Details as to why the talks unraveled weren't immediately available. Honda and Nissan initially said they were trying to finalize an agreement by June and set up the holding company by August. Advertisement The three automakers will continue to work together on electric vehicles and smart cars, such as autonomous driving, they said Thursday. In recent weeks, Japanese media had various reports about the talks breaking down, citing unidentified sources. Some said Nissan balked at becoming a minor player in the partnership with Honda. Honda is in far better financial shape and was to take the lead in the joint executive team. Nissan reported a loss for the July-September quarter as its vehicle sales sank, prompting it to slash 9,000 jobs. At that time, Chief Executive Makoto Uchida took a 50% pay cut to take responsibility for the results.
