Industry Report: Honda Chairman Vows to Keep Production High and Use More U.S. Parts and Labour

Japanese media has picked up on the story too, with daily Asahi Shimbun commenting recently, "The decline of the once invincible

The need for cooperation goes beyond Honda and Toyota's welfare, in that the U.S. is Japan's most significant political and military ally. (Photo: Trevor Hofmann, Canadian Auto Press)

American auto industry in the face of Japanese competition could set off a nationalistic backlash among American consumers... There is every reason for Japanese automakers to work hard to avoid unnecessary conflict."

The need for cooperation goes beyond Honda and Toyota's welfare, mind you, in that the U.S. is Japan's most significant political and military ally. The fact that protectionist U.S. politicians, backed by powerful lobby groups, have threatened to disrupt the flow of Japanese auto imports in the past weighs heavy on the Japanese government and auto execs, making the need to address alleged unfair trade practices on one side of the Pacific, and the potential of anti-Japanese sentiments in America.

It is important to note, however, that despite the claim by some groups that Japan is unfair in its trade policies, the Big 3 make few vehicles suitable for Japanese consumption. Not only have perceived quality

By Detroit's own admission, most domestic cars don't measure up to their Asian counterparts. (Photo: Trevor Hofmann, Canadian Auto Press)

levels among Big 3 products been lower than those of their Japanese rivals in past years, although improvements have been made recently, their less sophisticated drivetrains, lackluster styling and much larger overall size makes them uncompetitive in a techno-savvy populace.

Truly, by Detroit's own admission, most domestic cars don't measure up to their Asian counterparts. Significant strides have been made with regards to reliability and other areas of quality control, but it will be a hard sell to turn around perceptions among North American consumers, taking time and also a great deal of ad money to get the message out.