What Keis And Big Pickups Have In Common: A Galapagosization

Today's Nikkei [sub] puts forth an interesting thought: It's dependence on big pick-ups distracts the Detroit 3 on a global basis. Now, tiny kei cars could do the same to the Japanese.  Writes the Nikkei: "Part of the reason the Big Three U.S. automakers lost their international dominance is because they lagged foreign carmakers in implementing global strategies by clinging to large pickup trucks, which only do well in the U.S." "There is a concern that an excessive focus on minicars will lead to the "Galapagosization" of Japan's auto industry." Minicars, or "kei" cars are a rapidly growing segment in an otherwise stagnant Japanese auto market. In April, keis took 40 percent of the Japanese market. Elsewhere: Zero. Keis are a Japanese phenomenon, and nearly non-existent outside of Japan.  Says the Nikkei: "The Maruti 800, which was produced by Suzuki for the Indian market based an older design for its Alto and was wildly popular, is perhaps the sole exception. But the car was equipped with an 800cc engine for the Indian market because a 600cc model was seen as underpowered." In trade talks, negotiators have criticized Japan for giving special tax and insurance treatment to minivehicles. But, says the Nikkei: "Japanese carmakers may find that relying excessively on a protected domestic market poses a bigger risk than opening up to the world. Automakers should bring their advanced minicars to other countries, such as emerging markets, to show that their vehicles are not products of the Galapagos syndrome." from The Truth About Cars http://www.thetruthaboutcars.com

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