When East meets West...
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• by Bryan Jarvis
In 1999 the Japanese automotive industry suffered the latest in a series of bad years. Motor vehicle production fell below 10 million units for the first time since 1979; truck production was down for the fifth year in a row; the strong Yen hit exports; and domestic sales were seriously down.
But Tokyo's first dedicated commercial vehicle exhibition showed no signs of the decline in goods distribution, the slump in the construction industry or the general slowdown in consumer spending. it was well attended, and attracted many Foreign OEMs and business folk—but very few British visitors, ArvinMeritor and Isuzu Trucks UK excepted.
The absence of new truck
designs reflected the dramatic decline in demand in Japan— and there's also that small matter of implementing the atmospheric pollution protocol agreed in its own Kyoto backyard.
Investing in cleaner, more fuel-efficient vehicles needs hefty funding, which severely stretches manufacturers R&D budgets: hence the increase in collaborative ventures.
Examples Good examples are Mitsubishi's proposed strengthening of its ties with Volvo in the CV sector and DaimlerChrysler's onethird interest in ots car division.
But Volvo is more interested in investing in a 19.9% share of MMC's proposed Fuse Truck and Bus division when it is formed next summer. The two
parties are already collaborating to develop a 12-20-tonne dual-branded truck range.
It will have a shared cab, resulting from joint investment, design and production synergies, but the driveline and chassis will be of either pure Fuse or Volvo origin (in the latter case. the engine will be a jointly developed Deutz/Volvo unit).
According to Volvo Nippon's general manager, Carl-Gustav Eklund: "Asia is a major focus, as is our planned partnership with Fuse Truck & Bus."
Volvo has its own truck distribution network in Japan, with 33 distributors and 118 service agents: and it is steadily building up sales year on year. More than 650 Volvo trucks are in operation in the country, and this year's tally (mostly artics) is expected to grow to about 350 units—treble the figure for 1999. On offer are FF112 and FM12 artics, tippers and cargo trucks; next year's options will include the 14-speed Geartronic semi-automatic transmission and the six-speed Powertronic in FH12 tippers.
Exports
Exlund says Sweden's 1999 exports to Japan rose by 20% compared with 1998, and in the first half of this year they were up by 55%. Little wonder the Swedish and German governments sponsored stands at the Tokyo CV show: UK take note!
DaimlerChrysler Japan (DCJ) launched the Actros in May 1998, since when it has sold about 500 examples. Although artics are still the main seller, the 2535 6x2 rigid exhibited, with full air suspension, rear lifter and Feather Wing body, is a typical operator's choice.
Last year DCJ broke with Komatsu to set up a 110-strong dealer/service network, and despite Japan's flagging heavy truck and artic sector, which is heading for an all-time annual low of 35,000 unit sales (from a 1995 peak of 75,000). DCJ expects to bag a 1.5% share.
At the utility end of the local truck scene, there's nothing quite like the ubiquitous Unimog, which arrived there in 1954. This is an odd situation, considering the Japanese penchant for reinventing existing ideas. But this sector has also suffered, with sales down to 25-30 units a year.
Models
However, DaimlerChrysler's latest models with their new shape cabs, permanent four-wheel drive and Telligent gearshift options could change all that. Judging by the host of Oriental admirers fawning over new and fully equipped U300s and U400s, demand there might quickly outstrip supply.
But it isn't at Mercs and Volvos. Renault, too, with a 36,8% share of Nissan Motor, had a piece of the action in the shape of the X-Cargo van, which, like the Vauxhall Movano, is distinguishable from the "real" Renault Master only by Is Nissan front panel and steering wheel badge.
Commercial liaisons work both ways, of course. Here in the UK, Volvo sells the 3.5-7.5tonne Mitsubishi Canter range, and it has certainly considered the next range up.
Isuzu Trucks UK has bitten the bullet, however, and will introduce 12tonne F-Series chassis— but not until the 2002 CV show, and I won't go on sale much before the spring of 2002.
Such a long delay seems something of an anomaly, especially in view of the falling demand in Japan. But although ITUK MD Nikki King and her business team are disappointed, she predicts that it will be well worth the wait.
Will lsuzu ever assemble trucks here? "Britain's important to us," says Isuzu president Takeshi Inoh. "But despite the Euro situation, it's highly unlikely; there are too many limiting factors, especially the severe competition within Europe."