ARTICLE: "Japan's Auto Giants Steer Toward China: Toyota, Nissan, Honda Refocus Their Efforts As U.S. Demand Slows," by Amy Chozick, Wall Street Journal, 16 May 2007, p. A12.
Get used to that subhead: "turn to Asia/China as U.S./European demand slows."
All relative, mind you, but it comes down to, Who's the demand center in the global economy?
When I did the NewRuleSets.Project security ex on Asia's rising energy needs (scroll down) with Cantor Fitzgerald atop World Trade Center 1 at Windows on the World in early 2000, the clincher line in the read-ahead was basically, "Asia's going to become the global demand center on energy by 2020."
That, of course, doesn't change everything, but it does change a lot of things, to include the focus of effort of major auto companies from around the world--including ours.
You access the China build-up and you learn how to sell to the bottom of the pyramid for whatever markets Asia replicates itself in next.
Remember, the Euros made us in the 1800s, and then we, in turn, raised up Asia after WWII. Now Asia must replicate itself--by sloughing off lower-end production as it moves up the value chain--and that somebody's gonna be in the Gap.
When Honda-Shanghai Motors opens its first assembly plant in Kenya, then we'll understand better what comes next.
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