2007 Mitsubishi Galant Se Sedan 4-door 2.4l on 2040-cars

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Trump declaration they're a security threat stuns Japanese automakers

TOKYO — Japan's automakers' lobby said on Tuesday it was dismayed by President Donald Trump's declaration that some imported vehicles and parts posed a threat to U.S. national security, as the industry braces for a possible rise in U.S. tariffs. Trump made the unprecedented designation of foreign vehicles on Friday but delayed for up to six months a decision on whether to impose tariffs to allow for more time for trade talks with Japan and the European Union. "We are dismayed to hear a message suggesting that our long-time contributions of investment and employment in the United States are not welcomed," said Akio Toyoda, chairman of the Japan Automobile Manufacturers Association. "As chairman, I am deeply saddened by this decision," Toyoda, president of Toyota, said in a statement. Trump has threatened to impose tariffs of up to 25% on imported cars made by foreign automakers, a move which automakers have argued would ramp up car prices, curb the global competitiveness of U.S.-made vehicles and limit investment in the country, the world's No. 2 auto market. The United States is a vital market for Toyota, Nissan, Honda and other Japanese car makers. Autos and components are among the Asian country's biggest export products. Most of Japan's major automakers operate plants in the United States. The Japan Automobile Manufacturers Association notes that its automakers build about 4 million vehicles a year in North America, or 75 percent of what it sells here. Many are built for export, helping lessen the U.S. trade deficit Trump is concerned about. Major automakers have announced a slew of investments in the United States since Trump took office in January 2017 and put pressure on the industry to create more U.S. jobs. For its part, Toyota has pledged to invest almost $13 billion in the United States between 2017 and 2021 to boost manufacturing capacity and jobs. This includes $1.6 billion for a vehicle assembly plant in Alabama jointly run with Mazda. Government/Legal Honda Mazda Mitsubishi Nissan Toyota Trump

Nissan and Renault shelve merger plans, will repair their alliance

Renault and Nissan have shelved plans to push towards the full merger former leader Carlos Ghosn craved and will instead fix their troubled alliance to try to recover from the coronavirus pandemic, five senior sources told Reuters. Nissan has long resisted Renault's proposals for a full-blown merger as executives felt the French carmaker was not paying its fair share for the engineering work it did in Japan, sowing discord that some feared could wreck the partnership. Now, with carmakers around the world reeling from the pandemic, the partners are planning to overhaul an alliance that largely failed to convert its global scale into a competitive advantage beyond the joint procurement of parts. Both struggling carmakers are set to announce mid-term restructuring plans this week that will serve as a peace treaty designed to resolve the long-standing tensions, five people familiar with the overhaul told Reuters. "After the rain, the earth hardens," said one senior Nissan source, citing a popular Japanese proverb that means relationships become stronger after a period of strife. All five sources within the alliance, which also includes Mitsubishi, declined to be named because they are not authorized to speak with media. Nissan and Renault are each planning substantial restructuring and cost cuts that could affect tens of thousands of jobs, with the Japanese company to announce its measures on May 28 and its French partner likely to follow the next day. Before that, Mitsubishi, Nissan and Renault are holding a joint news conference on May 27 during which they are expected to outline the philosophy behind their new "leader-follower" approach to the alliance. The sources said the companies were unlikely to disclose many details at the events this week of how the new approach will be used to share costs as the companies were still working on specific projects. However, the crisis at both carmakers has accelerated efforts to resolve the disagreements that have stymied collaboration and cost-sharing in technology and product development for five years, the sources said. Mitsubishi, Nissan and Renault all declined to comment officially about alliance plans. 'Leader-follower' The alliance has steadily ramped up output over the years, delivering over 10 million vehicles for the first time in 2017, the first full year after Mitsubishi joined the partnership.

Long-serving Mitsubishi president Masuko to step aside

Long-struggling Mitsubishi Motors is reportedly preparing for a changing of the guard at home. According to Reuters, Osamu Masuko will step aside in favor of Tesuro Aikawa, currently the company's managing director. Masuko won't be leaving the fold entirely, however - he will take the role of chairman, displacing Takashi Nishioka, who will resign. The shakeup has not been confirmed by Mitsubishi, but word is that the changes will take effect April 1.
Mitsu's US troubles are no secret, but the brand's struggles in its home market haven't been quite so publicized. The company was bailed out by other arms of the Mitsubishi empire, and it just raised $2 billion this month to buy back preferred shares that were issued during the bailout. Masuko served as president for nearly ten years, during which the brand's US efforts utterly stalled out, recalls cropped up in Japan and an alliance with Daimler (which was DaimlerChrysler at the time) disintegrated.
According to Reuters, establishing the kind of alliances that will allow the brand to grow, such as its tie-up with Renault-Nissan, are key to Mitsu's long-term success. The thought is that an alliance will allow the brand to come up with some innovative models that won't be compromised by its lack of production scale. It looks like Aikawa has his work cut out for him.