Japan’s Automakers Shift Into Crisis Mode Over The EV Race 2024

By Dinesh Bajaj

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In the 1980s and early 2000s, Japan led in technology, especially in electronics, video games, and car making. Japan’s Automakers Shift car industry was famous for making great cars that were very good quality and reliable. But there were problems, like the bad economy in the 1990s, a big earthquake in the early 2010s, and decisions made in the car industry.

Now, even though Japan was one of the first to make electric cars, its car companies are trying hard to get ready for more electric cars. This is not easy because they need to change how things are done, fix problems with getting parts, and figure out what people want. The recent slowdown in electric car sales shows how tough it is for Japan’s car industry to change and stay good in a world where more cars are electric.

At the same time, people are looking at other big car companies. Ford is worried about China becoming more important in the car business. And Volkswagen Group made a new brand called Scout Motors to sell batteries for electric cars that don’t cost a lot. These things show how complicated the car business is and how different things like new technology, politics, and what people want all play a part.

No one knows for sure what will happen to Japan’s Automakers Shift car business. It depends on how well they deal with these problems and keep being good at making cars. In today’s Presidents’ Day news, we’ll talk about these things and more to see what’s going on in the world of cars.

30%: Japan’s Catch-Up Plan Also Involves Infrastructure, Green Energy

Japan’s Automakers Shift, especially Toyota, might be happy about fewer people buying electric cars and more buying hybrids in 2023. But they’re also worried about losing customers in China to Chinese electric car companies that are now exporting cars worldwide.

1Japan’s Automakers Shift led in technology during the 1980s and early 2000s, but faced challenges like economic downturns and natural disasters.
2Despite being early pioneers in electric cars, Japan’s car industry struggles to adapt to the increasing demand for EVs.
3Ford and Volkswagen Group are preparing for shifts in the automotive industry, particularly in response to Chinese competition.
4Scout Motors, backed by Volkswagen, is seeking cheaper battery technology for its upcoming SUVs and trucks.
5Toyota, despite disappointing some EV enthusiasts, remains a key player due to its extensive industry supply chain.
6Nissan faces uncertainty, while Honda’s strategy is unpredictable, making them both wild cards in the industry.
7Japan’s Automakers Shift car industry is striving to address challenges such as labor shortages and the transition to clean energy sources.
8Scout Motors aims to roll out its first electric vehicles by the end of 2026 and is actively exploring battery innovations.

So, what’s Japan’s Automakers Shift going to do? According to Automotive News, a group called the Japan Automobile Manufacturers Association, which includes big carmakers like Toyota, Honda, Nissan, Mazda, Subaru, and Mitsubishi, is making a plan. They want help from the government.

While some might not like the idea of the government getting involved, it’s important to remember that electric car sales in the U.S. got a boost from government tax breaks, and China’s government has been supporting electric cars for a long time. If a government wants to protect its car industry and jobs, it has to invest and put up barriers to foreign competition.

For Japan, this means car companies working together, making more car parts in Japan, and using more renewable energy. Japan’s Automakers Shift is still worried about electric cars after the Fukushima nuclear disaster, which showed how weak its power system was and made it switch back to using more fossil fuels. This plan aims to solve problems and make the most of opportunities in the changing car industry :

  • This year, new rules are limiting how much truck drivers can work. This, plus not having enough workers, is causing problems for Japan’s Automakers Shift production system. To fix this, carmakers are trying to find ways to deal with the worker shortage and keep their factories running smoothly. They’re focusing on things like using electricity for cars, making cars with software, and managing energy better.
  • Also, if the car industry wants to stop polluting, it needs to use clean energy. That means finding fuels for cars and factories. Japan should use more renewable energy like wind and water. It should also try new ideas like using ammonia to power plants, making hydrogen in big factories, and recycling carbon dioxide.

JAMA is pushing for hydrogen, especially promoting “hydrogen stops” for cars that run on hydrogen. Toyota, the biggest car company in the world, is a big supporter of this. They want to advance hydrogen technology for the long term. This plan needs to start happening now. While it would be great to see another boom in Japan’s Automakers Shift tech like in the 1980s, Japan doesn’t have unlimited money. So, any plans need to be practical and consider the cost.

60%: Ford’s EV COO Says ‘We Don’t Have A Future’ If It Doesn’t Get Ready To Battle China

I’ve said before that despite facing many challenges, Ford Motor Company is making progress in electric vehicles (EVs) and software. But they shouldn’t get too comfortable.

If we think of EV adoption in stages, we might be seeing the end of one stage—Tesla’s popular models like the Model 3 and Model Y, more EV options, high sales, and better charging stations—before a new stage begins. I think this new stage will start soon, with more competition and advancements like better batteries and cheaper EVs. At a recent discussion, Ford’s EV division’s leader hinted at this competition. It’s clear that the EV market is changing rapidly.

  • “That’s bound to happen,” Marin Gjaja, Ford Model e’s COO, said during a panel about new technology held by Ford. “So, we need to start working on electric cars now, or we won’t have a future.”
  • Gjaja also mentioned that he’s not sure when it will happen, but he believes competitors will come into the market eventually. “I don’t know exactly when, but I think they’ll come,” he said, comparing it to how Japan’s Automakers Shift, Korean, and German car companies entered the market. “It’s a big market.”
  • He pointed out how big the Chinese market is and how companies from there could become global leaders. “China’s market is so big that these companies could become the biggest, unless Ford and others can respond,” he warned. “Think about all the people, resources, and money put into making cars — it’s all changing quickly because of new technology.”

Ford is smart to get ready for this. There’s still a lot of doubt about electric cars in America’s auto industry, and executives don’t always say what they really think. But they’re increasingly worried about BYD, a Chinese company.

If Chinese companies like BYD scare American companies into action, then it’s a good thing. Because if the U.S. relaxes rules on fuel economy, which encourage using electric cars, it would be silly for carmakers to just keep making gas trucks and SUVs forever.

90%: Scout Motors Needs Cheaper Batteries

Don’t think that the slowdown in electric car sales means less investment in them. The Scout Motors factory in South Carolina is a big deal for Volkswagen Group. We’ll have more details on this soon.

Meanwhile, the electric Scout SUV and pickup truck need cheaper batteries. The batteries made by SK Innovation in Georgia for the VW ID.4 won’t work for the new Scout platform, I found out when I asked.

Where those batteries will come from remains a mystery. Here’s Bloomberg:

  • Scout Motors Inc., a new electric car brand in the United States backed by Volkswagen AG, is looking for cheaper battery technology to make its upcoming SUV affordable for regular buyers. Because many Americans think electric cars are too expensive, Scout is searching for cheaper batteries as it plans to make 200,000 SUVs and pickup trucks at a new $2 billion factory in South Carolina.
  • In an interview, Scott Keogh, Scout’s talked about the company’s flexibility as a startup. “We’re a new company and we can change,” he said. “We’re looking at different kinds of batteries to see which ones give us the best balance between how far the car can go and how much it costs.”

The first Scout Motors electric cars are expected to be made by the end of 2026. So, while they’re working on the factory and the cars, they have some time. In the fast-changing field of battery development in the U.S., two-and-a-half years can see big changes, both in finding materials and trying out different chemicals. This gives Scout Motors plenty of chances to keep up with the latest battery tech and put it into their cars.

100%: Which Japan’s Automakers Shift Is Best Positioned For An Electric Future? 

Toyota has let down many electric car fans, but I still think its electric plans could be promising if it acts soon. It also owns or has shares in almost all parts of Japan’s car industry, so it could do well in the future. Subaru and Mazda will probably follow Toyota’s lead.

Nissan is hard to predict; it seems to be in a mess these days. Honda is the wild card here.

Do you trust Japan’s car companies, or do you have doubts about their future? CLICK HERE

Scout Motors Factory Groundbreaking 2024 Official PhotosAlso Read :

Dinesh Bajaj

My name is Dinesh and I have been blogging on electronicsscars.com for 2 years. I write blog about electronics car here. I have also worked in garage for 6 months. This blog of mine is my world, where I share with you the advantages and disadvantages of car blog.

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