Why U.S. cars aren’t popular in Japan

The Atlantic

American automakers like to complain that protectionist policies prevent them from selling vehicles in Japan, said Alana Semuels. “The reality is more complicated.” Japanese carmakers claim 90 percent of their home market; by comparison, the U.S. Big Three—General Motors, Ford, and Fiat Chrysler— make up 45 percent of the U.S. car market, with Japanese brands claiming 39 percent. Politicians like President Trump have suggested this imbalance is the result of Japan’s trade policies, such as lengthy car inspections on foreign-made vehicles. But it mostly comes down to “hospitality.” The way Japanese consumers buy cars is unique, and American auto companies haven’t invested “in the kind of dealer

network that consumers there have come to expect.” Car dealerships in Japan happily offer to bring cars to customers’ houses for test-drives, for instance; dealers also handle car insurance and provide free checkups and maintenance. American drivers, who are about as happy to visit a car dealership “as they are to get their teeth pulled,” probably can’t relate, because American dealers simply “don’t offer such services.” European automakers like BMW have recently begun to invest heavily in their dealer networks in Japan, and their sales are posting double-digit growth as a result. U.S. brands can “choose to adapt to or ignore” the world’s third-largest auto market. What they shouldn’t do is complain about trade barriers.