Japan Makes More Cars Elsewhere

A report released by the Japan Automobile Manufacturers Association shows that for the first time Japanese car companies manufactured more cars abroad than in Japan during the last fiscal year. The shift to local manufacturing has been a natural result of globalization of the industry, allowing the companies to shield profits from currency changes, reduce shipping costs and appeal to local tastes. Expansion of foreign production has also created a shift in attitudes toward Japanese carmakers; whereas once a Honda or Toyota symbolized lost jobs in the US, communities now vie for the firms to build factories in their towns, especially as US companies such as General Motors and Ford cut jobs and production across the country. As Japanese automakers expand production abroad, including a growing use of local parts, workers welcome the infusion of jobs, and consumers appreciate fuel-efficient cars that cost less because they are made nearby. Japanese cars made in the US, China or Thailand – appreciated by laborers and consumers alike – demonstrate the power of globalization. – YaleGlobal