Europe is no longer the missing link for Japanese auto makers.
While U.S. competitors stumble there and European producers lag in their domestic markets, Japanese OEMs are doing better and better. They even are beginning to make money in what General Motors Corp. CFO John Devine labels the world's most profit-challenging market.
In the first nine months of 2004, sales of the six leading Japanese auto makers in Europe rose 4% to 1,438,774 vehicles and were expected to push past the 2 million mark for the full year. Market share in the period was 13.2%, up from 12.4% year on year and headed higher.
Additionally, three Korean OEMs saw even bigger gains, jumping 23% to 445,383 units, with 4% market share.
“The Japanese and Koreans have done relatively well in a weak market,” says A.N.R. Millington, director general of the Tokyo office of the European Automobile Manufacturers Assn.
The strong euro has given an extra boost to the profits of these Asian producers as they continue making aggressive moves to improve their products and position in the demanding market.
More appealing models such as the Toyota Yaris, Honda Jazz, Nissan Micra and Mazda3 now are attracting more customers. Equally important, more Japanese models now are available with diesel engines, a critical alternative in Europe.
