Toyota proposes selling U.S. cars in Japan to support tariff talks

Sorry, but I don't think many people in Japan would like to buy a Toyota made in the US! The cost would be much higher, and the quality not as good as what you can get here in Japan!

Toyota is desperate. But who in Japan would want to buy gas-guzzling, oversized, left-hand- drive US-made cars?

To our Jaoanese friends, be honest or “be real”: no amount of obsequiousness will make Trump forget about the trade deficit. Picking up garbage at the stadium after World Cup matches is nice but the world respects strength, not servility.

If Japan wants a fair trade deal, it might consider standing its ground rather than offering up its domestic market as a sacrificial lamb.

For those who don't know, Toyota supported selling VW cars in the past. Even now, there are many VW dealers placed right next to Toyota ones for this very reason, across Japan. It's a win-win situation in most cases and a very smart, confident move from Toyota.

But how many people buy US car? Need much more gas and quality is not so good.

But if he talks Toyota cars made in America that is ok, all Toyota are good quality and reliable.

Sure, they might guzzle fuel like a marathon runner reaching for a drink, but let’s not be too hasty in dismissing them. Perhaps it’s not entirely down to fuel consumption or quality— but a matter of restrictions and tariffs used to protect domestic industry?

Car manufacturers sometimes do stuff for compliance. They may make a tiny number of loss making eco cars to lower the overall fuel economy of their fleet to please the EPA. They may make a tiny number of street legal sports cars so that the non-legal version can race in certain races. This has happened several times in the past.

Simplest solution here is to import a few US Toyotas, such as Tundras. Mitsubishi have started selling a smaller pickup called the Triton, which I presume is US made. Outdoor types like em and think they are cool. Selling a US made Toyota will be way easier than selling a GM car, in terms of logistics and aftersales support.

Wouldn't american made cars have the handle on the wrong side? Anyways it seems mad from a cost perspective.

American car makers aren’t really interested in the Japanese market…never have been.

They never set up a reasonable dealer network. They don’t make many right hand drive cars and they don’t have viable alliances with Japanese makers.

The reason is simple: US car makers can’t make money on the kind of cars that would sell here.

It’s not some Japanese conspiracy. Other countries do a solid business in Japan. There are big Audi/Mercedes and even Alfa dealers in every middle and large city.

Is Toyota going to sell U.S.-made Toyotas in Japan or actual U.S. cars like Ford and GM?

If it’s the former, it’s a laughable concession. But, hey, if it gets a better tariff deal, so be it.

If it’s the latter, ditto. It’s still laughable simply because there is such a small market for American cars. Farmers aren’t going to switch to massive Ford pickups because roads and everything in their operations are gauged for k-trucks. There are market reasons why Audi, Benz, BMW, Renault, and Alfa Romeo have presences in Japan, while Ford and GM mostly don’t. Putting one or two American models on the showroom floor isn’t likely to change this.

The Japanese consumer appreciates German quality just fine

nobody here wants an American car.

German quality just fine

Well, I'm German and not so sure about that anymore. I mean, considering who's visibly walking in the cities there, easily leads to logical conclusions who is then at similar percentage also operating the car making facilities and standing at the conveyor belts there, to keep it in more modest words.

"Toyota proposes selling U.S. cars in Japan to support tariff talks."

Brilliant idea, Carry the vehicles and let the consumers decide what they want.

Japanese buying US made junk cars??

Good luck on that, LOOOOOL..

In 2005 Toyota tried selling rebadged GM Cavaliers over here for exactly the same reason.

That went... predictably.

Simplest solution here is to import a few US Toyotas, such as Tundras.

The Tundra is a full sized pick up - way too big for Japan.

Mitsubishi have started selling a smaller pickup called the Triton, which I presume is US made.

That's a a great truck, far more appropriate size and aka the Dodge RAM 50 in the US, the Chrysler 50 down under and the L200 elsewhere. Made in Thailand though.

"Japan, meanwhile, has been affected by Trump's extra 25 percent tariff on automobiles, along with other sector-specific levies imposed on national security grounds. Tokyo presented a package of proposals to Washington to reach a deal"

it's not fair!

Sven

Would you rather have a BMW or a Stelantis?

choice is pretty obvious

as for the implication of your previous comment that’s just bizarre. Companies adhere to certain standards regardless of who they employ.

If the US accepts that even just as a reciprocal tariff for cars then win for Japan

I don’t want a lower quality American made Toyota.

One idea, sharing their dealership network, but problem remains, Japanese auto market rapidly shrinking due to aging and depopulation, so sales will steadily drop, especially as autonomous driving becomes the norm.

Trump correctly understands US market deserves a premium as a result, and he's just adopting policies of Japan, EU, China, India, etc., regarding domestic production, which means imports will be below 10%.

Trump's not going to 'carve-out' exceptions for auto imports with material volume, so EU, Japan, Canada, SK, Mexico etc. will be treated the same.

Those criticizing the quality and fuel consumption rate are not well informed about Toyota USA. I retired after 22 years for Toyota USA. I worked on the design of Toyota models.

"GAS guzzling": Toyota produces several models that are fully electric and many others that are electric hybrid vehicles made in the USA. In fact, almost all Toyota made in the US are offered as gas-electric hybrid models.

"Poor Quality": Toyota Motor Corporation Japan has engineers involved (and usually Chief Engineer) in US based vehicles. Toyota quality standards strategy is global, not just for Japan. US made Toyota vehicles is very high.

Japan tax laws cause Japanese buyer to get a new vehicle every 3 or 4 years. In the US, it is very common for vehicles to be driven 20-30 years. I personally own a 1995 Toyota Tacoma that was made in USA: very reliable. It is very common for American to have car 20+ years old and in the US older Toyota has cars have reputation as very reliable.

As always with auto purchase, I think price will be a big factor in success selling Toyota made in the USA in Japan. But, I think quality and fuel consumption will be fine for Japanese customers.

Japan tax laws cause Japanese buyer to get a new vehicle every 3 or 4 years

This is an old trope not established in fact.

Japanese consumers of old used to be happy to entrust annual servicing and shaken inspections to the dealer they purchased their new car from. At the first shaken, at 3 years, said dealer would present an invoice of ¥300k to ¥500k inc. unnecessary jobs "in order to pass the inspection".

Now they are more savvy and either do a "user shaken" themselves or get their local garage to do it for them for a minimal fee plus the test fee, taxes and compulsory third party insurance for two years for a mere 40k to 120k, depending on the weight and engine capacity of their car.

The basic insurance alone makes this a bargain so, as Peter commented, folks no longer see sense in replacing their cars at 3 or 5 years old.

The idea of selling US made Toyotas in Japan is not a new one. I remember watching a Toyota commercial in which they said that Toyota was the largest seller of American made cars in Japan.