This page has been archived and commenting is disabled.

Abenomics Fail: Japanese Auto Demand Drops Most In 3 Years

Tyler Durden's picture




 

Over a year after Shinzo Abe unveiled his devalue-the-currency three arrows plan to save his demographically-challenged and debt-riddled nation from a third lost decade... and aside from a stock market that soared as the currency collapsed - the Japanese people have little (or worse less) to show for it. As MarketWatch reports, Japan Automobile Manufacturers Association said Thursday that auto demand in Japan is expected to drop 9.8% in 2014 as the sales tax increase in April will dent consumer sentiment. The decline will be the first and sharpest drop in three years after auto demand remained nearly flat last year. It seems that 'recovery' will have to wait.

 

Japanese wage growth remains as stagnant as it was before Abe - despite the costs of most things rising in the nation thanks to a tumbling JPY...

 

and the balance sheet recession has left a nation minimizing debt as opposed to maximizing profit (or for people living standards via credit).

 

Via MarketWatch,

Japan Automobile Manufacturers Association said Thursday that auto demand in Japan is expected to drop 9.8% in 2014 as the sales tax increase in April will dent consumer sentiment.

 

The decline will be the first and sharpest drop in three years after auto demand remained nearly flat last year with a 0.1% rise.

 

JAMA expects auto demand to total 4.85 million vehicles this year, down from 5.38 million last year. This will be the lowest volume since 2011 when the industry was hit by an earthquake and tsunami. The association expects the reverse impact from the rush of car-buying ahead of the rise in Japan's sales tax rate to 8% from the current 5% in April to pull demand for the full year.

 

The expected weaker demand means little chance for car makers to lift domestic production led by domestic demand. The downbeat outlook comes as Prime Minister Shinzo Abe is asking Japanese companies to raise wage and invest more in the home market.

 

...

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 01/30/2014 - 23:02 | 4386522 The Gooch
Thu, 01/30/2014 - 23:07 | 4386543 InjectTheVenom
InjectTheVenom's picture

Ho Li Fuk   !

Thu, 01/30/2014 - 23:10 | 4386554 NoDebt
NoDebt's picture

9.8% YoY drop?  Wi definitely To Lo.

Thu, 01/30/2014 - 23:51 | 4386677 TruthInSunshine
TruthInSunshine's picture

Paul "When Mars Attacks" Krugman just tweeted that Japan's military should fake an alien invasion and destroy approximately 4 million recently purchased passenger cars, then have the BOJ print a couple quadrillion more yen and email "reimbursement vouchers" with government checks for free new cars to those who had their vehicles destroyed.

Fri, 01/31/2014 - 00:08 | 4386726 HardlyZero
HardlyZero's picture

It is just cheaper to just drive the new cars next to Fukushima and they will be worthless for 10000 years.

Fri, 01/31/2014 - 01:43 | 4386932 Rukeysers Ghost
Rukeysers Ghost's picture

Where's Godzilla and Mothra when you need them?

Thu, 01/30/2014 - 23:29 | 4386604 The Vineyard
The Vineyard's picture

Abe's a nationalistic maniac.  I'm afraid that little bastard might start a war.  Balls.

Thu, 01/30/2014 - 23:05 | 4386530 Grande Tetons
Grande Tetons's picture

After three lost decades it is time to change the measurement metric. 

Only about one third of this century has been fucked! Yippppppppy. Mr. Sulu, full steam ahead. The engines......that is. 

Thu, 01/30/2014 - 23:04 | 4386534 kliguy38
kliguy38's picture

Just weather effects

Thu, 01/30/2014 - 23:12 | 4386553 suteibu
suteibu's picture

And what happened 3 years ago?  The end of Japan's cash-for-clunkers subsidies.

I predict a fresh round of auto bailouts.  Especially since the government is about to be flush(er) with all of that new tax revenue.

Thu, 01/30/2014 - 23:55 | 4386679 HardlyZero
HardlyZero's picture

IMF has a Japanese app for that.  Comes with 100 page user manual and 10 free lawyers.

Thu, 01/30/2014 - 23:13 | 4386555 Capitalist
Capitalist's picture

The problem is they only doubled the monetary base. Obviously they should have tripled it.

Fri, 01/31/2014 - 00:03 | 4386711 HardlyZero
HardlyZero's picture

Nikkei drops below 15000.

Fri, 01/31/2014 - 00:07 | 4386723 Pheonyte
Pheonyte's picture

It dropped below 15,000 last night too, means nothing. Nothing means anything anymore. You must love Big Brother. 2+2=5.

Thu, 01/30/2014 - 23:21 | 4386581 tickhound
tickhound's picture

It's a laughable 'problem' that will only get worse... Robots don't buy cars. Square peg meet round hole.

Fri, 01/31/2014 - 00:11 | 4386738 The Gooch
The Gooch's picture

Infinite growth model meets reality.

Fri, 01/31/2014 - 02:03 | 4386955 theliberalliberal
theliberalliberal's picture

meat's reality

Thu, 01/30/2014 - 23:27 | 4386597 666
666's picture

I feel very sorry for the Japanese. When you look at the big picture, with Fukushima, aging demographics, QEternity, stagnant wages, inflation, no desire to marry and raise a family, etc., there really is no hope for them.

Fri, 01/31/2014 - 00:24 | 4386773 Oh regional Indian
Oh regional Indian's picture

666, whoever down-voted you has no idea about Japan.

Ever since it was rudely broken to them that there is more to the world than Japan, they have shown only the most fascist tendencies generally.

The root of Japanese culture is very xenophobic.

And their banks keep lending failing businesses more andmore money at super low low rates. They have been pretending for a long time now.

I'm speaking from a looooong business and presonal association with them. And of course, since 1945 they have been openly under US subjugation, of which Fukushima is just one more ugly extension.

ori

Fri, 01/31/2014 - 00:53 | 4386834 suteibu
suteibu's picture

Japan was under US subjugation since Perry planted the American flag on Okinawa and threatened to do the same in Tokyo.  It wasn't until the Treaty of 1878 that Japan was allowed to control its own foreign trade.

NY Times, January 1, 1880.

"In the treaty of 1878 it is declared:  ”That from the time this present convention shall take effect, the United States will recognize the exclusive power and right of the Japanese Government to adjust the Customs tariff and taxes and to establish regulations appertaining to foreign commerce in the open ports of Japan.”
[...] This treaty was negotiated as an act of justice toward Japan..."

To say that Perry "rudely broke..." that there was more to the world than Japan is understating the reality and misunderstanding their desire to remain isolated.  They were already trading through the Dutch.  What they did not want with open trade was exactly what happened.

Thu, 01/30/2014 - 23:31 | 4386607 Jack Burton
Jack Burton's picture

It appears that reactor number two at Fukushima has a nice big hole in it's containment vessel. TEPCO itself admits that this hole is making it difficult to maintain the constant water flow over the damaged core that is needed to keep it cool enough to be in what they call cold shutdown. Of course none of the three melt downs are in cold shut down, they are melted and burned through the containment and somewhere in the ground, nobody has yet to see them, as to see them is instant death. The robot found the hole in the floor of number 2 containment vessel. Now the Ice Wall is going forward with drilling beginning, once completed this will be used to stop the cooling waters from flowing out to sea. Since water is flushed onto the reactors 24/7 to prevent the China Syndrome, the Ice Wall will do the job of send all that deadly level radioative water deep into the underground water table as this will be it's next path of least resistance. You can kiss underground water good buy for whatever portion of Japan lies in the path  of the underground flow system.

Record radiation was recently measured on the surface of Number 2. Nobody knows why the level is on a upward trajectory. In fact, in Japan and at TEPCO, the experts don't know jack shit about anything. To go in and find out what has happened will kill anyone attempting it. But, remain calm, all four reactors are safely in cold shutdown and clean up is well underway. If only Orwell were alive to write commentary on TEPCO instead of the SPanish Civil War!

Fri, 01/31/2014 - 00:23 | 4386693 HardlyZero
HardlyZero's picture

Probably hire some Ukraine, Indian and Argentine 'specialists' to clean it up...and pay 20% hazard bonus !

Dismal.

Fri, 01/31/2014 - 01:29 | 4386919 Tim_
Tim_'s picture

The Argument that Fukushima Was Sabotaged

"Former NSA analyst, Jim Stone, argues that...the Fukushima explosion and meltdown was caused by mini-nukes hidden in cameras installed by an Israeli security firm. The motive: punish Japan for offering to enrich Iranian uranium... ."


Japan ready to supply enriched uranium to Iran - paper

"Japan has offered to provide Iran with enriched uranium to ease international concerns over the Islamic Republic's controversial nuclear program, the Japanese Nikkei daily reported on Wednesday."


Report: Japan offers to enrich uranium for Iran

"The Nikkei daily, without citing sources, reported that the proposal for Japan to enrich uranium for Iran was floated in December, with US approval, when Iran's top nuclear negotiator Saeed Jalili visited Tokyo."


Israeli firm’s cameras recording Japanese nuclear core

"Security cameras installed by Israeli defense company at Fukushima plant have ability to detect presence of radioactive clouds in air."

"The Arava-based Magna BSP company, which specializes in producing and installing stereoscopic sensory and thermal imaging cameras, had been contracted to place cameras around one of the plant’s six cores – the core that has been experiencing explosions and overheating."

Fri, 01/31/2014 - 03:27 | 4387018 matrix2012
matrix2012's picture

"Japan has the bomb. Israel did the testing."

 

United States Circumvented Laws To Help Japan Accumulate Tons of Plutonium

The United States deliberately allowed Japan access to the United States’ most secret nuclear weapons facilities while it transferred tens of billions of dollars worth of American tax paid research that has allowed Japan to amass 70 tons of weapons grade plutonium since the 1980s, a National Security News Service investigation reveals. These activities repeatedly violated U.S. laws regarding controls of sensitive nuclear materials that could be diverted to weapons programs in Japan. The NSNS investigation found that the United States has known about a secret nuclear weapons program in Japan since the 1960s, according to CIA reports.

A year ago a natural disaster combined with a man-made tragedy decimated Northern Japan and came close to making Tokyo, a city of 30 million people, uninhabitable. Nuclear tragedies plague Japan’s modern history. It is the only nation in the world attacked with nuclear weapons. In March 2011, after a tsunami swept on shore, hydrogen explosions and the subsequent meltdowns of three reactors at the Fukushima Nuclear Power Plant spewed radiation across the region. Like the bombs dropped on Hiroshima and Nagasaki, Japan will face the aftermath for generations. A twelve-mile area around the site is considered uninhabitable. It is a national sacrifice zone.

How Japan ended up in this nuclear nightmare is a subject the National Security News Service has been investigating since 1991. We learned that Japan had a DUAL USE nuclear program. The public program was to develop and provide unlimited energy for the country. But there was also a secret component, an undeclared nuclear weapons program that would allow Japan to amass enough nuclear material and technology to become a major nuclear power on short notice.

That secret effort was hidden in a nuclear power program that by March 11, 2011– the day the earthquake and tsunami overwhelmed the Fukushima Daiichi Nuclear Plant – had amassed 70 metric tons of plutonium. Like its use of civilian nuclear power to hide a secret bomb program, Japan used peaceful space exploration as a cover for developing sophisticated nuclear weapons delivery systems.

Political leaders in Japan understood that the only way the Japanese people could be convinced to allow nuclear power into their lives was if a long line of governments and industry hid any military application. For that reason, a succession of Japanese governments colluded on a bomb program disguised as innocent energy and civil space programs. The irony, of course, is that Japan had gone to war in 1941 to secure its energy future only to become the sole nation attacked with nuclear weapons.

National Security News Service


Thu, 01/30/2014 - 23:33 | 4386616 WillyGroper
WillyGroper's picture

Speaking of cars. 

Nigel has a thought.

Nothing that didn't dawn on Hastings, I'm sure.

Fri, 01/31/2014 - 00:05 | 4386719 williambanzai7
williambanzai7's picture

Fri, 01/31/2014 - 00:38 | 4386809 suteibu
suteibu's picture

Due to increased off-shoring of manufacturing, METI has decided to change "Made IN Japan" to "Made BY Japan" so as to retain its integrity. 

Kind of like Apple's "Designed in America."

No sarcasm.  No Joke.

Fri, 01/31/2014 - 00:22 | 4386766 ReactionToClose...
ReactionToClosedMinds's picture

very good Mr William Banzai

Fri, 01/31/2014 - 00:51 | 4386836 Atomizer
Atomizer's picture

What year did the taxpayer subsidizing program end?

Municipal cunts call it a tax abatement.  

Fri, 01/31/2014 - 02:20 | 4386961 Spungo
Spungo's picture

What did Abe expect to happen when Japanese workers have lower real incomes than last year and the year before? There's no way he's this stupid. Destroying japan's economy was his intended goal from the beginning.

Fri, 01/31/2014 - 02:43 | 4386979 TNTARG
TNTARG's picture

It's just horrible what's going on.

And it's coming through in waves...

 

Fri, 01/31/2014 - 08:45 | 4387283 AdvancingTime
AdvancingTime's picture

Bottom-line, if investors in Japan's government bonds begin to believe that Abenomics will be successful in dropping the value of the yen and in bringing back inflation it would be logical for owners of  JGBs to move out of the securities and buy foreign bonds or equities. That would place upward pressure on Japanese bond yields and raise the cost of government to service its massive debt. With the BOJ  set to absorb half of the government bonds planned for sale this fiscal year, domestic investors have already started venturing overseas for higher yielding assets. If this turns in to a tsunami of  money fleeing Japan it will constitute the end of the line for those holding both JGBs and the yen. See details below,

http://brucewilds.blogspot.com/2013/08/japans-economy-going-forward.html

Do NOT follow this link or you will be banned from the site!