Japanese Car Market To Slow Down
The Japanese car market that has been on a multi-month winning streak could be slowing down quite soon. The reason: The record run on new cars also ran down the government’s subsidy budget in record time. The Japanese government currently is paying a bounty to everybody who buys an environmentally friendly (read: most of them) new car. Thought to last through September, the subsidy-kitty now is expected to be empty by the end of July, The Nikkei [sub] reports.
Market observers expect a surge in the month before the program ends, followed by a lean period, due to pull-forward sales. “There will be a reverse impact to some degree” Akio Toyoda, CEO of Toyota, had said recently. Automakers are expected to soften the blow with generous incentives.
On paper, the effect will initially be masked by the low base caused by the March 11 tsunami. Later into the year, the market could be in the reds even when compared with 2011.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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