The Japan Times - Unless competitive barriers such as the strong yen and high corporate tax are eased as soon as possible, the nation's automakers may not be able to keep building cars in Japan, newly appointed Japan Automobile Manufacturers Association Chairman Akio Toyoda said Monday.
"It is not just about exchange rates, but if we continue to face these critical barriers, Japan's manufacturing industry will collapse," said Toyoda, president of Toyota Motor Corp, who was appointed JAMA chief on May 17.
He cited what has come to be known as the "six barriers" — the strong yen, the high corporate tax, slow progress in concluding free-trade agreements with other nations, strict regulations in the domestic labor market, stringent goals for reducing carbon dioxide emissions and the possibility of electricity shortages.
"In theory, it is unrealistic to operate business under such circumstances," Toyoda said at the headquarters of JAMA, a lobby group for the auto industry.
But if the automakers were for instance to shift production of a million vehicles overseas, it would throw thousands of people in Japan out of work, so the makers are trying to stick with domestic production to protect jobs, he said.
As for the outlook of the global auto market, Toyoda said there are some short-term concerns, such as the financial crisis in Europe and the sluggish U.S. economy, but he remains optimistic.
"I have a positive outlook for this fiscal year overall as well as the medium to long term," he said.
Demand in emerging countries will expand, and the Chinese market, where more middle-class people are purchasing vehicles, will continue to grow, he said.
"In Japan, people say that the auto market has matured, but it's a complete misunderstanding," he said, adding that the market has been increasing about 4 percent on average over the past 20 years and growth will continue.
On the likely power shortages this summer, Toyoda said the auto industry isn't planning to shift holidays to help reduce peak demand on weekdays, like it did last year.
The auto industry took Thursdays and Fridays off and worked Saturdays and Sundays last summer, but this placed a lot of burdens on employees, business partners and customers, he said.
In addition, Toyoda said JAMA will keep promoting Japan's participation in the U.S.-backed Trans-Pacific Partnership, while also planning to urge the government to abolish automobile acquisition and weight taxes to reduce the cost of owning a car.
