After World War II the Japanese auto industry, Why we can catch up with the United States?

to compare a first set of data, the United States and Japan produced the first Car of the time, respectively in 1896 and 1907; in 1929 the US Auto output exceeded 500 million units, while Japan Is less than 500 ; 1980, Japanese Auto output exceeded a million, up 11.04 million, Auto output for the first time surpassed the United States.

can be seen from the data, the Japanese Auto industry started late in the US, in just fifty years to achieve the go-ahead for the United States, the twentieth century’s Auto output of less than 500 Taiwan, when the US Auto output Is already a million times in Japan, and three decades later, in 1980, Japan’s Auto production has surpassed the United States, then became the world’s first Car producer. That’s what causes so quickly occupied Japan was the global Automotive market it in a short period of time?

First, let us look at the situation in Japan at that time. Japanese native

World War II

In 1945 Japan announced its unconditional surrender, the Japanese economy after World War II defeat a defeat, lost the one hand, overseas colonial and world markets, on the one hand Is faced with high war reparations, many factors make Japan’s economy Is almost at the verge of collapse. However, Soviet “Cold War” in the background to provide a quality soil for the economic development of Japan. US strategic needs for the Asia-Pacific region, Japan has been supporting reconstruction and Japanese war reparations hundreds of billions are exempt, which Is equivalent to the deregulation of the Japanese economy, provides a basIs for industrial development in Japan.

Japan also depend on the rapid development of the Automotive industry in Japan attaches great importance to the Automotive industry, only 13 days after the end of World War II, Congress began to dIscuss how to develop the Automobile industry, they were aware of Japan economic recovery must be based on technology-intensive industries, and Japan Is just an Island, not to establIsh an independent market similar to the United States as the Soviet Union, must take the international trade routes. Based on thIs consideration, the Japanese government finally decided in the Car, let the Car industry bet to become the source for the national economy, driven by 100 million Japanese people develop their economies.

In Japanese Car companiesInitial stage of development of the industry, the global Automotive market, the battle has begun, Japan clearly recognize the limitations of their own development, active learning to the then development of Automobile industry has been more mature European and American countries, from 1951 to 1969, Japan has from the United States, and Italy other countries introduced 405 advanced technology. 1952-1960, the Japanese Auto companies and most foreign Auto companies to establIsh a cooperative relationship. Japan when learning of foreign advanced technology, the constant pursuit of innovation on the basIs of imitation, which Is also an important reason for them to rIse. Toyota had wanted to Carry out technical cooperation with Ford Motor Company, Ford found that only wants to Toyota into its own subsidiaries. Toyota turned to the introduction of key technology and equipment, integrated digestion and absorption, take the road of independent development of Cars. Toyota developed according to their equipment with modern five-year plan, 1951 – Import a Machinery Equipment 17.3 billion yen in 1955, quickly establIshed a system of Car production. Toyota


In addition, the Japanese government vigorously support the Automobile industry, up to 40% levy tariffs on imported Cars thIs item tariffs abolIshed until 1978. The Government Is also investing directly in Car prices, infrastructure construction, and are a significant investment for the country roads, expanding domestic demand, and guide the domestic Car market expansion. For cooperation with foreign investment, Is limited to technical cooperation, it does not allow capital investment.

In a series of initiatives, the 1950s and 1970s, Japan’s Auto industry had a golden age, but 70 years later, the Japanese Car was ushered in blowout development.

In 1973 the outbreak of the fourth Middle East war, although the war in order to win US support of Israel in the end, but the failure of the Arab countries face Is always embarrassing, in order to fight against supporters of Israel, OPEC would raIse oil prices from $ 3.011 to $ 10.651 a barrel, rIsing more than twice. After just five years, and the second oil crIsIs broke out, Iraq and Iran, the two oil-exporting countries in the international oil industry by making war a tremendous impact, oil production from 5.8 million barrels per barrel fell to 100 million barrels, huge a direct result of the decline in the value of crude oil shot up from $ 1.3 in 1979 to rIseTo 34 US dollars in 1980, soared nearly tripled.

ThIs two oil crIsIs has seriously affected the US Automotive industry, the US Auto industry Is represented by Ford’s large dIsplacement, high-power Car . And Japan, due to geographical restrictions, a prerequIsite for the shortage of resources, making the Japanese Auto industry development direction of energy-saving, low power consumption. Affected by the economic crIsIs, Americans prefer energy-saving, fuel-efficient, cost-effective Japanese Car. In the early 1960s, Japan has completed a monopoly on the domestic Auto industry, by means of which the two oil crIses, the Japanese completely open overseas markets.

Since the 1980s, the US Auto industry nearly overwhelmed fierce offensive the Japanese Auto industry, Japan’s Honda, NIssan, MitsubIshi and Fuji companies have set up factories in the United States. Japanese Cars poured into the United States, the US Auto market has brought a huge impact on the US Auto industry nearly overwhelmed fierce offensive the Japanese Auto industry, US Auto industry appeared first loss in 34 years in 1980, 1980 and 1982, losses totaling $ 3.3 billion. Ford pickup

of the 1970s

Chrysler and Ford, by American media and American public opinion from the trade union building momentum, Japan formally presented to the joint international Trade CommIssion anti-dumping lawsuits, allegations of “dumping Toyota Car to the US market.” By 1986, anti-dumping case, force the Japanese had to “voluntarily” limit the number of Cars exported under the threat of collapse.

With the escalating US-Japan trade friction, the United States played a set of combination punches, Japan, the United States take aim low domestic demand, high leverage, high foreign investment, domestic real estate bubble, the stock market bubble and other factors, signed a series of agreements to limit Japanese exports, and ultimately, with the Japanese real estate bubble burst, Japan’s finance, real estate and living large impact, industry competitiveness. In 1991, the economic bubble was punctured, Japanese Cars into a downturn, annual production of Japanese Cars in 1994 fell to 10.5 million units.

However, up to now, Japanese Cars still have outstanding competitiveness in the international market. 2019 FullBall top ten Auto manufacturers have three Japanese companies, namely Toyota, Honda, NIssan. Where Toyota Is the world’s largest Carmaker, Japan’s most influential global multinational corporations, it Is the world’s most valuable Car company. Toyota has more than 50 factories overseas, in over 30 countries and regions. LikewIse entrants to the lIst only two US Carmakers, Ford and GM, respectively.

It turns out that the core competitiveness of high-quality, high-tech, high value-added Is the Automotive industry.