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MI The Japanese economic miracle has taken a few knocks of late. A succession of disgraced Prime Ministers has had an effect, even on the unashamedly rigged Tokyo stock exchange. American and European concern over towering trade imbalances has forced changes on trade patterns, and the vehicle markets are not immune. At a corporate level, Iveco is calling for trade protection and a restructuring of the European commercial vehicle industry. At a product level, there are signs that European manufacturers, like Land Rover with its new Discovery, are meeting the Japanese head on — and winning.
The traditional Japanese reaction to strong competition has been price cuts. Economies of scale from huge production runs has allowed this strategy to work in the past, but Japan is no longer alone in achieving low vehicle costs through low wages. Other countries in the Pacific Basin, Eastern Europe and Russia combine lower wages with modern productin methods, and hence cheaper vehicles. Japan has reacted by moving upmarket, where its vehicles are judged against home-grown products without the protection of the lowest prices.
In the light van markets, the gentlemens' agreement which limits Japanese imports to the UK has emphasised this trend. With only a limited number of the vehicles allowed into the country, the importers have concentrated on top-of-therange models on which a maximum profit can be made. The Japanese-invented "compact " van, for example, is no longer so cheap that one can ignore questions about its suitability, safety, or economy.
To counter ,criticisms, Far Eastern manufacturers have been uprating the compact vans as fast as they can. Mazda's E2000 was first, followed by Nissan's Urvan. Now Toyota has uprated and revamped is Hiace, which is the subject of this week's road test.
The Hiace has been treated to new engines, interior layouts, exterior panels and safety features. Japanese vans have come in for sharp criticism for the safety