Collaboration aids Japanese influx
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• European light vehicle manufacturers are bracing themselves for a massive Japanese invasion of their markets despite tough import controls and quota restrictions. Japanese penetration of the light vehicle sector will reach 15% in 1991 if joint ventures with European companies are added to the built-up imports, says a new report from The Economist Intelligence Unit.
The report points out that exports outside Europe are limited and falling. The fortunes of the European manufacturers are determined by how well they can compete against each other and against Japanese imports for market share in Europe.
Demand for light commercials has increased dramatically in recent years, particularly in the small-van sector, where purpose-built — as opposed to car-derived-vans — and the wider availability of dieselengined variants have proved popular.
European van builders are heavily dependent on government import controls. The report says: "Without these limits is is possible that Japanese companies would have built up their market share to around 25%."
Apart from European protectionism, Japan has to contend with the strengthening of the Yen, which has hindered its competitiveness.
Even so, it is unlikely that Japanese influence will diminish. Japan has forged close links with European companies which will help it overcome inter-European quotas restrictions and indeed European companies actively seek Japanese co-operation to acquire technology more cheaply through joint ventures.