This just in: “The U.S. auto industry has dropped a demand for Japan to abolish rules related to minivehicles ahead of upcoming talks between the two sides over the Trans-Pacific Partnership (TPP) free trade zone,” The Nikkei [sub] writes after reading this story.

For a long time, Japan’s automakers had pressured their government to enter free trade talks with Europe and the U.S. The Japanese government had dragged its heels, putting the interest of ageing farmers first. With a trade agreement, Japan would be a ripe market for American rice farmers and cattle breeders, and I would finally be able to enjoy a good steak in Japan without risking a heart attack. Caused by the price, not by the cholesterol.

After the Japanese car industry did flee the strong yen and the country, its government reluctantly entered negotiations. Not surprisingly, the American car industry is opposed.

Illustrating the state of the Japanese auto industry, and especially that of Honda, Honda unveiled its prototype of the NSX yesterday in Tokyo. The Acura sports car had been rumored for two years, and was shown at the Detroit Motor Show. Honda repeated in Tokyo what it had said in Detroit:

Toyota announced its consolidated (i.e. including Daihatsu and Hino) 2012 sales plan today. It causes intensive head-scratching at other automakers, especially in Wolfsburg. Toyota plans to raise its 2012 global sales by a whopping 21 percent to 9.6 million.

The 86 is not on sale yet, and people are already swapping engines. In a virtual way at least. In hachi-roku forums people are discussing the merits of more horsepower than the stock 200hp. They also wonder aloud how much additional power the hachi-roku can safely take. “Go for it,” says hachi-roku Chief Engineer Tetsuya Tada:

Hachi-roku Chief Engineer Tetsuya Tada credits his sons with giving him the impetus to develop this car. His sons are 24 and 27 now, they do not have a driver’s license and show no interest in cars. “They sit in front of the computer all day,” says Tada. “On Gran Turismo, they are better than their father. But they don`t want to drive.”

Tada tells how he took his boys to the racetracks since age 5 to awaken an interest in cars. It was a disaster, Tada admits:

“Manufacturers like to blame young people for having no interest in cars. Maybe we should blame ourselves. Manufacturers provided boring cars and focused on older people, because this is where the money is. We have abandoned young people.”

I already told you that today is not the official launch. Highly out of the ordinary at Toyota. Usually, when the members of the media are invited, the car goes on sale. Not in this case. In Japan, the car will be in dealers’ showrooms in April, I hear. Nonetheless, if I want one right away, I better hustle down to my neighborhood Toyota dealer and place an order now.

The car is made at Subaru’s Gunma Manufacturing Division, 1,000 per month. Currently, there are more than 3,000 pre-orders, I better take a number. “But when will the car arrive in the U.S.?“ is what you and I want to know. “Not decided yet,” is the official answer.

First of all, I thought I had already been to the launch party. Wrong. I thought I had driven the thing. Wrong. I learned today this was a pre-announcement-pre-party, and the cars I had seen were “production prototypes.” I see. Then, this splendiferous event with a rock band, canapés and apple juice must surely be the launch festa, I thought. (The dear reader knows by now that the average Toyota launch event in Japan entails a card table, two speakers, PowerPoint and a bottle of water.) Wrong again. It’s kind of a pre-announcement. The car itself will come in — we’ll talk about that when we talk timing.

However, I was told that today, that now we have real specs and prices, and the cars (which looked deceptively like the production prototypes) are the ones that will be sold. In Japan. As for America –– we’ll get to that. Here are the vital stats of the hachi-roku JDM spec:

I spent all day at the launch party of the Toyota FT/GT86/86/Scion FR-S/Subaru BRZ “new compact rear-wheel-drive sports car” at Makuhari Messe in Tokyo. Could have been Chiba already. I came back with so much information about Toyota’s new “honest sportscar” (as Akio Toyoda likes to call it) that I declare today Hachi-Roku Thursday.

When I called Toyota’s new Aqua / Prius C affordable compact hybrid first a “gamechanger”, then an “engineering feat,” this attracted the attention of self-styled jargon vigilantes. They demanded equal platitudes to be bestowed on domestic models. In the meantime, the Japanese game changer threatens to change Toyota’s best laid plans: It sells ten times better than expected.

When the March 11 tsunami hit, observers thought that of Japan’s major automakers, Honda would be the least exposed. Most of its global production already is outside of Japan. Very few cars that are produced in Japan are exported. Toyota and Nissan looked much more vulnerable. Distrust predictions: Today, Honda presented the results for the last quarter of 2011. The numbers look uglier than the cars in the video.

It was the early 2010, the Toyota witch hunt was in full swing. While Toyota executives were burnt at the stake grilled on the Hill, Denso’s U.S. offices were raided by the FBI. Denso is a major automotive parts supplier, and a member of the Toyota family. The raid was part of an on-going investigation into alleged anti-trust violations. Or so they said.

After the NHTSA, NASA and the National Academy of Sciences could not find a ghost in the machine, the Department of Justice also cleared out its case file. For a fee.

So you know everything about cars. What do you know about the monster car carriers that bring an imported car? As far as I am concerned, I knew nothing when I arrived this morning at Nissan’s dock in Oppama, where Japan’s second largest car company showed off a 2012 model car carrier, the Nichioh Maru. And would you believe that the blue and white monster is green?

According to TTAC’s North Korean correspondent, “Mercedes of various models and age serve as the premium mode of transport for the rich and powerful.” China had to do something. And do they did. A Japanese car (of sorts) competes with German iron in the North Korean motor pool.

Today, Toyota announced its official December and end of calendar year production numbers. In December, Toyota’s worldwide production was up 13.1 percent to 757,226 units as ToMoCo hustles to make up for sales lost under Japanese tidal waves and Thai floods. For the year, worldwide production of all TMC divisions (including Daihatsu and Hino) dropped 8.2 percent to exactly 7,858,091 units.

The good folks who are still convinced that the Japanese car market is closed, can count themselves lucky. Would they have been with me today, they might have doubted their beliefs and strayed from the faith. Today, Lexus finally rolled out its new GS line in Japan. America had already seen it last Summer, and two TTAC testers actually drove the cars.

Today, two straight-laced Lexus executives told reporters in Tokyo that imported cars are so successful that Lexus would like to have some of that success and that they strive to take some of the imports’ growing market share. Kazuo Ohara, Deputy Chief Officer of Toyota`s luxury arm Lexus said:

Today, Toyota announced its revised sales plan for the calendar year 2012. The plan exceeds an already ambitious plan submitted in December. It also exceeds the numerical comprehension skills of journalists from the Wall Street Journal on down.

While Honda and Mazda are just getting their respective footholds in Mexico (the two automakers are opening up respective assembly plants in Mexico), Nissan has had a long presence south of the border, building cars at its Augascalientes, Mexico plant for decades.

Rare earth free electric motor

China is learning an interesting lesson: Only take a hostage if the other side wants it back. According to Japan’s Kyodo Newswire [sub], Toyota “has acquired technology to produce hybrid and electric vehicles without using rare earths and may begin doing so in about two years.”

The compact hybrid Prius C went on sale in Japan (where it is called Aqua) last month. If you would buy one today in Japan, you would get your car some time in late spring. Toyota already has orders for more than 60,000. In order to not let the line grow longer, Toyota is cranking up its assembly lines at the Kanto Auto Works in Iwate Prefecture.

Everybody is talking about how much the Euro is losing against the dollar. At closer look, it is not alarming. Even during normal times I have seen lower Euro rates than the current $1.27. But wait until you look at the Euro from a Japanese perspective. (Like the one I have at the moment, sitting in a pittoresk cabin half way up Mount Fuji that could use better heat.) The anemic euro might discourage people like me from coming to Japan. What it really does is discourage Japanese automakers from exporting to Europe. A lot has been said about the strength of the Yen against the dollar. It’s nothing compared to the Euro. Against the Euro, the yen turned into Godzilla. This has Japanese automakers extremely worried. They don’t really know what to do about it.

Honda’s plant in Thailand had been submerged for months. Now that the flood waters have finally retreated, Honda assesses the damage. The plant is a near write-off.

“The restoration work will almost be equal to making a plant from scratch,” a Honda executive told The Nikkei [sub]. Honda decided to completely rebuild the plant located in the Rojana Industrial Park in Ayutthaya Province, central Thailand, at a cost of around $650 million.

I remember looking at the then brand new Ford Five Hundred and thinking to myself, “This would make one heck of a Volvo.”

Like the Volvos of yore this Ford offered a squarish conservative appearance. A high seating position which Volvo’s ‘safety oriented’ customers would have appreciated. Toss in a cavernous interior that had all the potential for a near-luxury family car, or even a wagon, and this car looked more ‘Volvo’ than ‘Ford’ to me with each passing day.

Something had to be done…

When we talked about Japanese auto sales in 2011, we told you that sales of imported cars were missing, and that they would be available today. They are. Aided by a shortage of domestic cars and a strong yen, Japanese connected with their inner gaijin and bought 22.5 percent more imported cars in 2011 than in the year before. According to data released by the Japan Automobile Importers Association, 275,644 foreign-built vehicles entered the allegedly closed Japanese market, gaining a market share of 10.3 percent.

It’s not that the cross-sharing of technologies between Renault-Nissan has been a well-kept secret. However, it is good to hear that loose alliances between unlikely partners work, while a marriages made in the automotive compatibility heaven (we are looking at you, Volkswagen & Suzuki) don’t even get to the consummation part.

Renault-Nissan announced today in Detroit that its Decherd, Tenn., plant will build Mercedes-Benz 4-cylinder engines for Infiniti and Mercedes-Benz starting in 2014.

Read this sentence carefully.

Japanese allegedly bought 221,960 vehicles in December, up from 179,666 a year earlier, data provided by the Japan Automobile Dealers Association shows. Japan’s domestic sales of new cars, trucks and buses are up 23.5 percent compared to December 2010. This brings the calendar year total to 2.69 million vehicles, down 16.7 percent. Don’t write this into your Excel sheet just yet, because it is only part of the intricate Japanese sales saga.

The rivalry between the Buick Lacrosse and the Lexus ES350 may never become the stuff of automotive legend, but for a certain subset of consumers – wealthy men aged 65+ living part time in South Florida – the two vehicles are carefully cross-shopped to determine which car has the plushest ride, quietest cabin and parcel shelf best suited for stacking Kleenex boxes and adjustable-back baseball caps.

Now, the great conjecture machine known as the blogosphere (in this case, GM Authority) is reporting that the new Lexus ES, due out as a 2013 model, will make its Chinese domestic rival look “laughable. That according to one “well-connected auto industry executive”. Based on what we’ve seen from the Toyota product stable, the anonymous gentleman may be on to something.

Honda had been, on these pages and elsewhere, accused of perpetrating vehicular boredom. At the Tokyo Motor Show, Honda even admitted its sins: “Frankly speaking we think that in the past few years the cars have been a bit boring,” creative director of Honda’s styling design development division Yoshinori Asahi told the Sidney Morning Herald.

A remorseful Honda president Takanobu Ito now tells The Nikkei [sub] that the criticism was warranted and that things will change. First, however, Ito denies responsibility for the flagrant boredom, using the trite and true “I just followed orders” defense:

On the second day of Christmas, Toyota officially launched what will be known as the “Aqua” in Japan, or the “Prius C” in the U.S. and elsewhere. It will also be known as “the world’s most fuel efficient hybrid car.” At least that’s what Reuters calls it.

and came home with a trophy? This story has a sequel.

In 1958, two Datsuns, named “Fujii” and “Sakura” entered the Mobilgas Trial, 10,000 miles all around Australia. Surprisingly, “Fuji” won its class title. “Sakura” finished fourth.

Half a century later, the cars were found in a warehouse in Japan.

A week ago, we predicted that „Toyota will start the year with guns blazing and the lines rolling.” Toyota agrees, and delivers the numbers to back-up the claim. According to data released today, Toyota and Lexus alone intends to grow global production in the coming year by 24 percent to 8.65 million units. This number does not include Daihatsu and Hino. This is an ambitious plan, slightly exceeding the peak level of 2007.

Toyota/Lexus Projections 2012 (Ex Daihatsu, Hino)

One question that Bertel and I find ourselves returning to again and again in our regular conversations is “what will be the first Chinese-made car sold in North America?” We’ve agreed for some time that the groundbreaking first Chinese-made import would come from an established non-Chinese brand, rather than one of the many newer Chinese brands, but our usual suspects typically ranged from GM to Volvo (EV maker Coda builds what are essentially “knock down” Chinese made-cars, but technically they qualify as US assembled, as does Wheego). I don’t think the name “Honda” ever came up in these discussions, but sure enough, the NY Times reports

the Japanese automaker Honda is crossing the threshold by importing subcompact cars into Canada from one of its plants in China. This month, Honda Canada began receiving its smallest model, the Fit, from China instead of Japan, as part of a strategy to produce more vehicles outside its home country.

The decision allows Honda to eke out higher profit in a segment of the auto market where margins are extremely thin, especially since the high value of the yen cuts into all Japanese automakers’ overseas operations.

“The yen has been getting stronger and stronger,” Jerry Chenkin, executive vice president of Honda Canada, said on Tuesday.

Of course, Honda has yet to bring a Chinese-made Fit to the US, where antipathy towards Chinese products is greater and automotive diversity is lesser than in the Great White North. Also, the importation of Chinese Fits is seen as a temporary response to the high Yen, while Honda builds a new plant in Mexico for Fit production, scheduled to open in 2014. Still, this is a significant development, presaging the inevitable importation to the US of Chinese-built vehicles.

Quick: Where is the largest plant in the Renault/Nissan empire? France? Japan? Tennessee? Nope. It’s in China. At least since today it is.

Today, Nissan’s joint venture with China’s Dongfeng officially opened phase II of its plant in Huadu, near Guangzhou, the former Canton. Across the street from the current plant, a new factory was erected that adds capacity of 200,000 units to the current 400,000 unit per year facilities.

Today, Toyota started Chinese production of its third gen Prius hybrid. The car is being assembled at Toyota’s joint venture plant with FAW in frigid Changchun in China’s northern Jilin Province. Sales of the vehicle will begin in early 2012.

It was known as “The World’s Cruelest Rally:” The Mobilgas Trial, 10,000 miles all around Australia. In 1958, there were two entries, regarded as a joke by the burly Aussies: A pair of tiny Datsun 210s, named “Fuji” and “Sakura”.

The suicidal idea was had by marketing manager Yutaka Katayama. Aged 102 years, he is still alive to tell the story:

With only two more weeks to go in the calendar year, TTAC names GM the world’s largest automaker of 2011, followed by Volkswagen and Toyota.

Pummeled by a catastrophic tsunami in March, followed by a massive flood in Thailand, Toyota’s production and sales numbers will take a serious hit in the calendar year 2011. Global production of Toyota and Lexus vehicles is forecasted to be “at least 6.9 million units, as compared with 7.7 million units last calendar year,” Toyota spokesman Dion Corbett told TTAC. Global sales for the calendar year 2011 are forecasted to be “at least 7 million units, as compared with 7.7 million units last calendar year.” Corbett confirmed that this number is without Daihatsu and Hino. Projections for these units are not available. Based on October data, we add another 900,000 for Daihatsu and Hino, which should bring the Toyota total into the neighborhood of 7.8 million units.

The Daily Mail just woke up to a Japanese phenomenon: Blinged-out trucks. Some of these trucks have more neon than a pachinko-parlor. Did I say that they have no concept of a “light vehicle” overseas? I take that back. But watch out, there are new kids in town. TTAC investigates …

This is both an interesting and a strange article the The Nikkei [sub] has on GM. First, the interesting part.

Toyota presented today its revised outlook for the fiscal year 2012 (ending March 31, 2012). Only people who inhabitate spaces under rocks gasped when Toyota’s Executive Vice President Satoshi Ozawa announced that Toyota is looking at making only half the money it projected back in August. After a gloomy forecast in June, recovery from the tsunami had progressed faster than thought. Then, the waters in Thailand and the killer yen kept rising.

Automotive News Europe [sub] spotted a new trend in Tokyo: Daredevil CEOs:

“On Nov. 27, Toyota boss Akio Toyoda wowed a crowd of spectators in Japan by racing through a lineup of Lexus LFA supercars in the new Toyota 86 sporty coupe. One day later, Honda CEO Takanobu Ito hopped on a Honda MotoGP racing motorcycle and blasted around the company’s Twin Ring Motegi racetrack.”

Yesterday, you had your private tour of the Tokyo Motor Show, and you could not find a more competent and entertaining tour guide than Nissan’s head designer Francois Bancon. (Officially, „Deputy Divisional GM for Product Strategy.”) The former Renault man has seen the world. He was a Frenchman of the first hour at Nissan.

If you want to see the Japanese market through European eyes, then please tag along for part deux of the tour, where Bancon talks about Suzuki, Honda, and Daimler. Listen closely to what Bancon says about Daimler. Renault/Nissan and Daimler have an alliance, and Bancon knows where it is heading

Executive summary for the video-impaired:

Checking out the competition has a great tradition at auto shows. Executives usually try to avoid doing it in front of rolling cameras. They don’t want to end up like Volkswagen’s Winterkorn, who immortalized himself in his “Da scheppert nix” candid camera video, while admiring the non-rattling steering column of the latest Hyundai.

Now imagine the dropped jaws at Nissan when the crew at Nissan’ Global Media Center floated the crazy idea to have their own walk around of the Tokyo Motor Show, and to – gasp – say good things about the competition?

Toyota will still be #3 in cars made this year, but in terms of profitability, it has become an also-ran. Toyota shares that fate with their Japanese peers at Nissan and Honda. The Nikkei[sub] tabulated yen-denominated group earnings of 10 major automakers worldwide for the July-September quarter and comes to the conclusion:

Would you like to know how to build one of the world’s fastest (top speed 202 mph) and most agile ( Nordschleife time 7:14.64) supercars? If you want to have a look at how the Lexus LFA is built, then you need to buy one. As part of the ownership experience, you become access to the “LFA Works” at the Motomachi plant in Toyota City, and you can witness how your car is made. At upwards of $375,000 MSRP for the car, this will probably also be one of the world’s most expensive factory tours. Fiscally responsible as we are, Thetruthaboutcars.com brings you a miniature Motomachi. Let the tour begin …

Before the Tokyo Motor Show, we were told that the Juke Nismo on display there is a prototype only, to gauge customer reception. If customers react positively enough, the car will be made. If not, forget about it.

Apparently, Nissan’s Chief Creative Officer Shiro Nakamura heard nothing but positive remarks because … just watch the video until the end and hear what he says.

Some claim the Japanese don’t import enough cars. After what happened on Sunday near Shimonoseki, Japan, high value imports should experience a sudden blip.

On a freeway in southern Japan, at least 10 supercars were involved in what The Telegraph calls “likely to be the most expensive car crash outside of a car racing track.” Total damage is estimated at around $4 million.

It looks like Carlos Ghosn is tired of talking about the inaction of the Japanese government with regards to the killer yen. He told his people to start packing. The Nikkei [sub] reports today that Nissan will stop making in Japan newly developed cars for export from Japan. New cars will be produced at overseas plants.

“Under current foreign exchange rates, there can be no shipments from Japan of totally new projects,” Nissan’s COO Toshiyuki Shiga said. According to the report, anything with a new chassis that is intended for foreign markets will begin its life in those foreign markets. Says The Nikkei:

After the tsunami had hit Japan, Monday morning production experts said that production must be spread over many places in the world, just to be safe. Mention this to people at Honda, and they’ll strangle you in a polite Japanese way.

The Nikkei [sub] writes that Honda will temporarily shut down its plant in Taiwan, because it is lacking parts coming from Thailand. Honda says:

For quite some time, Carlos Ghosn had been the booh-leader against the strong Japanese yen. At the sidelines of the Tokyo Motor Show, he launched into his so far strongest worded tirade against the “abnormal” yen. He told the Japanese government to learn from the Swiss, and to basically peg the yen to another currency.

Regular Vehicle Sales Japan November 2011

All things are relative: Now that we are comparing with absolutely dismal numbers in the preceding year, November car sales in Japan look downright healthy. Sales of new cars, trucks and buses were 252,236 units, up 24.1 percent from a year earlier in November, the Japan Automobile Dealers Association says. The numbers do not include sales of separately reported minivehicles.

Sometimes, there are perks in this business. Yesterday, I had the biggest perk so far: I saw a $375,000 (base) supercar in the nude. And I could ask the man who built the LFA what he was thinking. He thinks the LFA could change Lexus as we know it.

Yesterday, first media day at the Tokyo Motor Show, the press corps was chased from press conference to press conference in 15 minute intervals. Today, the Fourth Estate was looking forward to lazy strolls through the halls, snapping pictures of attractive ladies cars, when an urgent email, followed by urgent telephone calls disturbed the peace: Come to the Grand Pacific Le Daiba at 4pm, when Toyota and BMW will hold a joint press conference. The local gang knows: When these short notice calls come, drop everything and show up, it will be interesting.

Toyota AND BMW? Let’s go!

Toyota capitalized on the pre-Tokyo Motor Show buzz and presented its plug-in hybrid Prius PHV to the press. The car is not quite ready for launch, it will be launched in Japan on January 30, 2012. However, dealers accept orders as of today. The venue of the press conference was carefully chosen: The National Museum of Emerging Science and Innovation.

Toyota sees this car as the “mainstay next-generation eco-vehicle following the EV.”

More pre-Tokyo-motorshow nekkyou-teki (craze): Nissan is creating buzz for its Juke by floating two videos for the Juke Nismo. The car will be on hand when the show opens to the press tomorrow. The car is a prototype only, to gauge customer reception. If customers react positively enough, the car will be made. If customers react blasé, it will be forgotten .

“It depends on the reaction at the Tokyo Motor Show. If it’s quite positive, we’ll consider introducing it into the market,” says Nissan President Shoichi Miyatani.

Tomorrow, the Tokyo Motor Show will open its doors at the Big Sight to the press. Pre-show madness is running in high gear. Every Japanese carmaker tries to outdo the other with pre-releases and hints. Sometimes, they go wrong. Especially, when there are gullible counterparts. On Sunday, the (FT)86 fans at the enthusiast site ft86club.com received shocking news from their special correspondent Leeky who was dispatched to the unveiling at the Fuji Speedway.

“The car will be limited to 1000 units per year only.
Each car I can confirm will be hand made.”

This tidbit created outrage amongst the Hachiroku (86) fans.

A while ago, we showed you a system that helps military vehicles blend into the background. Back then I thought wouldn’t that be nice to have for a car? I bet there are occasions where you would prefer that you could simply look like you weren’t there. Tonight, I saw something that looks like the civilian version. It comes from Toyota.

Today was the day Toyota’s FT86 was officially revealed. Actually, it will be officially revealed at the Tokyo Motor Show, which will open its doors to the public on December 3. Today, the international media had a sneak preview of the car. Us, and maybe 20,000 people who lined the galleries of the Fuji Raceway where Toyota and Gazoo Racing held its TGRF (Toyota Gazoo Racing Festival). The masses could witness from afar as Akio Toyoda climbed out of an orange sports car, removed his helmet and waved at the adoring crowds.

Last January, we reported that Mazda wants to go to Siberia, and this seems where they are headed. Mazda said in a statement today that it has agreed to a joint venture with Russian carmaker Sollers. It will produce Mazda cars in Vladivostok for the promising Russian market.

German-Nipponese alliances are not going out of style, the Volkswagen/Suzuki soap notwithstanding. Toyota and BMW cut a diesel deal – if The Nikkei [sub] is correctly informed. They ran the story very early in the Japanese Saturday morning; hence no comment from Toyota is available. We’ll ask on Sunday, when we’ll see that mysterious RWD sports car.

According to The Nikkei, BMW will supply diesel engines for Toyota’s passenger vehicles sold in Europe. When and how many is unclear.