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Just speculation, maybe this is a result of US pressure in the recent trade talks (trans-Pacific partnership?) It looks like Japan's domestic auto market is a k

Just speculation, maybe this is a result of US pressure in the recent trade talks (trans-Pacific partnership?) It looks like Japan's domestic auto market is a key issue in TPP: http://www.reuters.com/article/2013/04/12/us-trade-asiapacific-japan-idUSBRE93B09R20130412 http://www.reuters.com/article/2013/04/12/us-trade-asiapacif... (edit): Here's a whole article about US TPP pressure against kei cars: http://www.japantimes.co.jp/news/2012/01/27/business/lower-tax-rates-for-kei-cars-arent-ok-with-american-automakers/ http://www.japantimes.co.jp/news/2012/01/27/business/lower-t... "When American automakers expressed their opposition against Japan joining the Trans-Pacific Partnership negotiations due to its closed market, the U.S. makers also pressed Tokyo to end special tax treatment for the country’s unique “kei” super-minivehicle segment." "The outside pressure to end the low taxation for one of Japan’s most popular car segments has jolted the industry, which has protected the smaller end of the domestic car market for half a century." "Some industry observers point out that reviewing the tax rules for the super-mini segment would hit Japanese automakers hard. But others say a review would be a good thing because kei cars have received favorable treatment for too long." Reading those two articles, I think it's credible that US negotiators got a concession from Abe on kei taxes, and we're seeing the result of that. As I understand, this kind of deal would be made in secret (like many aspects of TPP), so we wouldn't be aware of it at this point.

deadghost 12y ago
"Japan also agreed the United States could phase out its auto tariffs, which are 2.5 percent on cars and 25 percent on trucks, over the longest period possible in the future TPP deal. Levin criticized the commitment in that area, saying any phase-out of the U.S. tariffs should be linked to measurable improvement in sales of U.S. cars in Japan." It's all highly suggestive that it's a concession in part of a broader strategy. I'm sure there's a complex interplay of interests going on with the TPP as a whole, US auto, and Japanese auto. US auto seems like it's getting the raw end and may be trying to grab at whatever they can and perhaps the Japanese may be making a large concession in another area(not auto related) to get more automotive foothold in the US. ^complete speculation; I don't know jack about politics/economics/current events.
deciplex 12y ago
>When American automakers expressed their opposition against Japan joining the Trans-Pacific Partnership negotiations due to its closed market, the U.S. makers also pressed Tokyo to end special tax treatment for the country’s unique “kei” super-minivehicle segment. "Meanwhile, the US government budget continues to be a primary source of revenue, for General Motors Corporation."
- watwut 12y ago
  Apparently, GM is strong in dealing with governments.
bane 12y ago
Or U.S. automakers could simply enter the segment. Kei cars aren't much different in size from a Smart car or a Fiat 500 (and yes, both are Euro designs). They're smaller than a Ford Ka, which is the smallest U.S. derived car I'm aware of that's in regular production (coincidentally made in Fiat factories). They aren't rocket science, but they do stress elements of interior design efficiency that American car makers aren't great at. TBH, I'd love to have a vibrant Kei car market in the states. Especially in and around big cities with lots of traffic.
- pjc50 12y ago
  Which is easier, innovating out of your comfort zone or using your contacts to have another country's laws changed without the informed consent of their electorate? Oh.
  - bane 12y ago
    Depends how big you are.

deadghost 12y ago

"Japan also agreed the United States could phase out its auto tariffs, which are 2.5 percent on cars and 25 percent on trucks, over the longest period possible in the future TPP deal. Levin criticized the commitment in that area, saying any phase-out of the U.S. tariffs should be linked to measurable improvement in sales of U.S. cars in Japan." It's all highly suggestive that it's a concession in part of a broader strategy. I'm sure there's a complex interplay of interests going on with the TPP as a whole, US auto, and Japanese auto. US auto seems like it's getting the raw end and may be trying to grab at whatever they can and perhaps the Japanese may be making a large concession in another area(not auto related) to get more automotive foothold in the US. ^complete speculation; I don't know jack about politics/economics/current events.

deciplex 12y ago

>When American automakers expressed their opposition against Japan joining the Trans-Pacific Partnership negotiations due to its closed market, the U.S. makers also pressed Tokyo to end special tax treatment for the country’s unique “kei” super-minivehicle segment. "Meanwhile, the US government budget continues to be a primary source of revenue, for General Motors Corporation."

watwut 12y ago
Apparently, GM is strong in dealing with governments.

bane 12y ago

Or U.S. automakers could simply enter the segment. Kei cars aren't much different in size from a Smart car or a Fiat 500 (and yes, both are Euro designs). They're smaller than a Ford Ka, which is the smallest U.S. derived car I'm aware of that's in regular production (coincidentally made in Fiat factories). They aren't rocket science, but they do stress elements of interior design efficiency that American car makers aren't great at. TBH, I'd love to have a vibrant Kei car market in the states. Especially in and around big cities with lots of traffic.

pjc50 12y ago
Which is easier, innovating out of your comfort zone or using your contacts to have another country's laws changed without the informed consent of their electorate? Oh.
- bane 12y ago
  Depends how big you are.