Comment by throwaway_yy2Di | Hacker News Reader

Comment by throwaway_yy2Di | Hacker News Reader

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throwaway_yy2Di

Just speculation, maybe this is a result of US pressure in the recent trade talks (trans-Pacific partnership?) It looks like Japan's domestic auto market is a key issue in TPP:

http://www.reuters.com/article/2013/04/12/us-trade-asiapacif...

(edit): Here's a whole article about US TPP pressure against kei cars:

http://www.japantimes.co.jp/news/2012/01/27/business/lower-t...

    "When American automakers expressed their opposition against Japan
    joining the Trans-Pacific Partnership negotiations due to its closed
    market, the U.S. makers also pressed Tokyo to end special tax
    treatment for the country’s unique “kei” super-minivehicle segment."
    
    "The outside pressure to end the low taxation for one of Japan’s most
    popular car segments has jolted the industry, which has protected the
    smaller end of the domestic car market for half a century."
    
    "Some industry observers point out that reviewing the tax rules for
    the super-mini segment would hit Japanese automakers hard. But others
    say a review would be a good thing because kei cars have received
    favorable treatment for too long."

Reading those two articles, I think it's credible that US negotiators got a concession from Abe on kei taxes, and we're seeing the result of that. As I understand, this kind of deal would be made in secret (like many aspects of TPP), so we wouldn't be aware of it at this point.

Or U.S. automakers could simply enter the segment. Kei cars aren't much different in size from a Smart car or a Fiat 500 (and yes, both are Euro designs). They're smaller than a Ford Ka, which is the smallest U.S. derived car I'm aware of that's in regular production (coincidentally made in Fiat factories).

They aren't rocket science, but they do stress elements of interior design efficiency that American car makers aren't great at.

TBH, I'd love to have a vibrant Kei car market in the states. Especially in and around big cities with lots of traffic.

Which is easier, innovating out of your comfort zone or using your contacts to have another country's laws changed without the informed consent of their electorate? Oh.

Depends how big you are.

>When American automakers expressed their opposition against Japan joining the Trans-Pacific Partnership negotiations due to its closed market, the U.S. makers also pressed Tokyo to end special tax treatment for the country’s unique “kei” super-minivehicle segment.

"Meanwhile, the US government budget continues to be a primary source of revenue, for General Motors Corporation."

Apparently, GM is strong in dealing with governments.

"Japan also agreed the United States could phase out its auto tariffs, which are 2.5 percent on cars and 25 percent on trucks, over the longest period possible in the future TPP deal.

Levin criticized the commitment in that area, saying any phase-out of the U.S. tariffs should be linked to measurable improvement in sales of U.S. cars in Japan."

It's all highly suggestive that it's a concession in part of a broader strategy. I'm sure there's a complex interplay of interests going on with the TPP as a whole, US auto, and Japanese auto. US auto seems like it's getting the raw end and may be trying to grab at whatever they can and perhaps the Japanese may be making a large concession in another area(not auto related) to get more automotive foothold in the US.

^complete speculation; I don't know jack about politics/economics/current events.

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