Then there were two

Prevailing sentiment in the Japanese media, and to some extent among the public, is that there are two truly indigenous automobile manufacturers in Japan: the Toyota group of companies and Honda. Others have entrenched themselves in global alliances for much-needed infusions of foreign capital.

The sun seems to be hovering on Japan's horizon, reluctant to rise. The climate is indeed bleak; political, financial, business, and environmental missteps overcast the country, with generous sprinkles of scandals and blunders. Moody's Investment Service has downgraded national bonds to the vocal indignation of government ministers and bureaucrats. Unemployment has not come down from the feared 5%+ for a year.

The media, in its usual zealous simplicity, like to classify the members of the Japanese automobile industry into two groups: the winners and the losers. Honda was the clear winner in fiscal year 2001 (April through March) in global production and sales, except in exports, which were amply made up by a hefty 7% increase in overseas production. The other four major OEMs (Toyota, Nissan, Mitsubishi, and Mazda) produced and sold less during the same period, but again performed better in overseas operations, with increases in production and/or exports. Overall, the Japanese manufacturers' total domestic production was still below 10 million units after two years of growth.