still struggling to resolve the incongruity

Shares Gaijin (foreigners) in the Japanese automotive industry is now almost 50% including 34% stake in Mitsubishi DaimlerChrysler. The question why the country's second largest car manufacturer in the world, who had known the most competitive, it becomes very difficult position to face the investors?

The main reason is a very severe recession. Another reason, the excess production of 11 experienced car manufacturers throughout the year.

In 1996, when Ford Motor Co.. took over control of Mazda Motor Corp.. with the control 33.4% of shares, a new chapter in the Japanese automotive industry began. Now General Motors Corp.. has a 49% stake in Isuzu Motor Co.., 10% Suzuki Motor Corp.. and 20% shares of Fuji Heavy Industries, Subaru car maker. Renault of France also controlled 36.8% stake in Nissan Motor Co.. and DaimlerChrysler has a 34% stake in Mitsubishi Motors. Although many publications mention the fact the alliance does not work out that easy.

President of Mazda from Ford, James E Miller, recently resigned after two years of his post. Industry expecting this because of problems faced by workers' organizations (union) Mazda, to fail to have the support to do more drastic restructuring. Ford's management to cut wages of more than 7%, reducing the Mazda platform by 30%, as part of Ford's goal to focus more on profits than on sales volume and market share.

In the case of Nissan, chief operating officer, Carlos Ghosn who has occupied his post 9 months, still struggling to resolve the incongruity between the desire western investors, Japanese workers and Japanese consumers. 1999 Nissan profits only half the original target, $ 857 million. Monthly Sales
now back 30 years ago. While GM faces a loss of $ 200 million for 1999 Isuzu.

Too early to judge what will happen to the Mitsubishi and DaimlerChrysler. Earlier, Chrysler controlled 15% stake to Mitsubishi in 1993. Chrysler sold Mitsubishi cars in the U.S. with the Dodge and Eagle brands. The result is not so fun. However for western investors, investment into the Japanese automotive industry is part of their strategy to dominate the Asian market that had been occupied Japan. Most Japanese automakers have factories and distribution channels in Asian countries.