The Japanese automotive market tallied 9,630,070 vehicle sales in 2013. It’s the third-largest car market in the entire world, behind China and the United States. And it seems like everybody would be benefiting from the volume in this region, but General Motors is practically nonexistent.
Of that total figure, GM vehicles accounted for just 1,200 sales last year. And while some would lay the blame on import vehicle tariffs, you may be surprised to learn that there aren’t any. And according to Automotive News, it appears that America’s largest automaker is shooting itself in the foot from not offering enough right-hand-drive models. One large Japanese dealer criticizes it as a “lack of effort.”
GM currently sells Cadillac and Chevrolet models in The Land of the Rising Sun. Chevy only offers the small Sonic hatchback and Captiva crossovers with RHD, while Cadillac presents none. In fact, Cadillac doesn’t sell a single RHD model anywhere in the world.
Though to be fair, it’s not like GM doesn’t build RHD vehicles in other regions of the Earth. But big Holden sedans probably wouldn’t do much for GM’s sales in the region, and building and shipping them up from Australia doesn’t sound very cost effective. GM’s South African operations produce mostly trucks — Isuzu trucks, mind you — and Vauxhall’s small cars built in England would only enter an overcrowded market segment.
If General Motors wants to run away with annual sales crowns, it seems that the missing link could be Japan. But right now, dealers can do nothing but remain optimistic.
Comments
That is GM’s problem, they need urgently like Ford to offer all they main stream vehicles in right-hand drive (RHD). It is so horrible that after all these years, GM can’t offer all their main stream vehicles in RHD, to be sold in the same Japanese market. Seriously, 1200 out of 9,600 000+ vehicles is actually a catastrophic effort on GM’s behalf.
Hence, GM needs to make the RHD a priority in the future if they want to increase their market share and profit margins.
If I’m not mistaken, isn’t it really easy to switch LHD cars to RHD for OEMs?
What do sumo wrestlers drive?
GM drives me UP THE WALL with their STUPID decisions or indecisions.
I travel to Japan at least two times a year for business and stay there for over a month each time. I know many people and areas in Japan. Yes, there are cultural barriers to GM becoming a competitive force in Japan. The Japanese are protectionists and nationalistic, so penetrating their home turf is not always easy. Add to that the Japanese government makes it challenging to really compete with its local companies on their turf. BUT, GM could do so much better! They just have no drive or understanding of the market, and dont even try.
GM needs to offer RHD vehicles NOW. How come so many other firms can but not GM? There is absolutely no excuse for Cadillac or Corvette…The Japanese aren’t going to start driving on the other side any time soon. But what really bothers me is GM makes no effort whatsoever to truly u derstabd the unique needs and concerns of the Japanese. Other manufacturers like Audi, Mercedes and others do and guess what? They are popular with many Japanese in urban centers. No magic, they just TRY and keep at it.
GM, hire someone that truly understands the Japanese market, invest in RHD, and stop making excuses. Abd this is coming from a long-time GM supporter.
“The Japanese are protectionists and nationalistic, so penetrating their home turf is not always easy. Add to that the Japanese government makes it challenging to really compete with its local companies on their turf.” Sounds just like the Americans.
GM thought process is to keep all their best cars LHD for the US market.
Right Hand Drive Cadillacs ( CTS V6 only rear wheel drive ) are sold by Ebbet Motors in Hamilton , New Zealand. They are built in Belguim. I’m sure they could make a few more to send to Japan. On some of the cars for sale sites in Japan there is often a RHD Cadillac for sale.
When Ford supply ‘down under’ with RHD Mustangs , you might get a surprise how many will be sold. GM has to make the Alfa platform RHD as well, as Australia and New Zealand will not have a RWD vehicle ! Logic says that the Caprice replacement would be a Cadillac CTS-V , and the Camaro would be the sports car. An ATS ( V6 TT) would be a bonus.
The V8 Supercar Race Cars could be either a Camaro or a CTS-V ( 4door or Coupe ) I think the rules may only allow 4 doors?
We are looking at 2017/ 18 for something to happen.
Sales of HSV V8 engine cars will go crazy late 2016 , to the point that I do not think factories will be able to keep up supply before the VF Holden and HSV vehicles are discontinued , to make way for the Front wheel drive Holden Insignia .
Right now RHD is only part of the problems.
The taxes and import of cars from outside Japan is very costly and often the cars were priced out of competition even if they were RHD.
GM in the past has build and imported cars to Japan. It was not all that long ago they built a bunch of Cavaliers to import with RHD under the Toyota name and the price of them just killed sales and Japan is a protected market.
The only real imports there that do much good are expensive sports cars and large expensive luxury sedans that old status. As for them most do not care where the wheel is even in them.
While making a car RHD would help there are many other issues including brand loyalty to fight here as it has been for a long time a very closed market.
Ford, Chrysler and many others are doing no better there either. Just the status cars like BMW, Benz and Ferrari.
Also we need to make smaller cars for the market as they charge taxes by the liter there. Right now to save money many drive cars with 1 liter or less. Then you have to deal with parking and the price in most major cities is more than you pay for a house in the USA and else where.
This is a complicated market and you can not place all the failure just on RHD.
For anyone not familiar with the Japan market I would recommend reading up on it as it is a tough nut to crack and has been for years.
If I recall also the older a car gets the higher the taxes get.
Some American cars do have a lot of popularity there and most make it there via the Military. The GI’s sell them when they leave and the new owners jump on the chance to own them as they are cheaper on the used market and LHD matters little if they want a Camaro.
I deal with many customer there looking for parts and most own GM cars. The most popular with no surprise is the Camaro, Corvette and older 60’s Cadillac’s and Impala’s. Two others I see often too are Astro Vans and 90’s Caprice wagons.
The goal of the Japanese government has been to maintain the share of their auto manufacturers to 95% using a complex maze of protectionist measures. That was true 25 years ago as it is today. I remember Dan Akerson being asked about Japan and he quickly replied that he had no interest in Japan and there was nothing there for GM. A company has limited resources, and although Japan has as high level of sales, expected profitability is extremely limited if not non-existent.
You are correct and RHD is not going to change sales. This is why GM and many others are not worried about Japan. The investment would be difficult to make up unless the rules are changed and no one see’s that happening soon.
This is utterly stupid, GM builds (at the moment) RHD vehicles in Australia, India, South Africa, Germany and the UK so surely they could put together a range of cars to sell in Japan. Also if this supposed new attack on Europe by Cadillac does not include RHD (or a diesel) then it is doomed to failure like the other 6 attempts. The main components are really a dashboard and different steering gear which in cost terms to GM would be peanuts. As others have said before there is so much good in GM but there are still signs like this that prove that GM in some respects hasn’t changed at all. Even if they just imported the whole European range and badged it as an Opel, Vauxhall, Buick or whatever they would at least be able to compete. The Corsa B was sold as the Opel Vita and as an import was quite a success in it’s day so it can be done.
This article is greatly flawed. Firstly, no non-Japanese company does well in Japan. A can’t point to Ford, for example, and note all the things they do right & GM does wrong.
Even Renault, tied to Nissan, has problems. Much of this pertains we e the Japanese Federalization mandates. Much of this its cultural: Japan practices economic nationalism & doesn’t put neighbours out of work in an effort to secure a cheaper sedan.
GM should either sell Vauxhall in Japan or just pull out completely and focus on a market like India with less bias and more potential for growth. Dominating India would make GM number one again.
Actually the idea of selling the cars as Vauxhall could work in GM’s favour as “British” branded goods (especially high end stuff) has a saleable cache in Japan.
Actually during the 1950’s and 60’s Vauxhalls were sold in Japan with some success, particularly the Viva! Following GM’s tie-up with Isuzu in the 70’s and 80’s, the locally built Chevette (T-car) and Cavalier (J-car) were re-badged as Isuzu Gemini and Aska, also enjoying success and replacing the previous Vauxhall and Opel models.
With the imminent arrival of the new Viva city-car and the fact that Isuzu now only manufactures pick-ups and trucks, perhaps it’s now appropriate to re-launch the Vauxhall brand in Japan, with the Viva being locally assembled by Isuzu and thus avoiding import duties. … Never say never – stranger things have happened.
MarcH1 – Yes you’re right, the last Vauxhall models sold in Japan were the HB Viva & FD Victor. Although the Isuzu Gemini was based on the T Car platform there were very few interchangeable components with the Chevette & Kadett C and you forgot to mention the Isuzu Plaza also T Car based (although you would never guess) I really must get around to doing a vauxpedia page for the Japanese T Car variations. Not sure what sort of dealerships Isuzu have for trucks but it might be possible to use that as a basis for a dealer network. The number of changes needed to pass Japanese regulations now are nothing compared to years ago and most of Vauxhall / Opel’s current offerings could be made available for sale in a matter of months – and if GM can send European made cars to Australia badged as Holden then Japan is just up the road geographically!!
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Shooting themselves in the foot is what North American car makers excel at. Everywhere else in the world the Chevrolet Cruze is available as a station wagon, but not North America. Won’t sell enough of them to make it worth the effort? So you only sell a few thousand – that’s still a few thousand more than you’re currently selling. I’d love to see a true Sonic wagon – not that truncated hatchback. A true wagon would hold more than anything in its class. Push the practical aspect of it – c’mon Chevrolet, be a leader – not an also-ran.