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Further Proof That Abenomics Is A Total Disaster: Japan Car Lobby Admits "Sense Of Panic"

Tyler Durden's picture




 

"Abenomics is not having clear traction across the country," warned the head of Japan's auto lobby on Thursday as unexpectedly weak domestic sales revealed - yet again - what an utter disaster government policy is. "We feel a sense of crisis about the fact that cars are actually not selling," he exclaimed, saying that, as Reuters reports April sales tax hike was only partly to blame for the domestic sales weakness, citing the government's failure to boost consumption. But, but, but Japanese stocks are up 1000 points in the last 2 days so how can this be?

 

As Reuters reports,

The head of Japan's auto lobby on Thursday said a "sense of crisis" hung over the industry, with unexpectedly weak domestic sales revealing the failure of government stimulus policies and currency turmoil hitting key export markets.

 

Japan Automobile Manufacturers Association (JAMA) Chairman Fumihiko Ike said an April sales tax hike was only partly to blame for the domestic sales weakness, citing the government's failure to boost consumption.

 

"We are seeing continued weakness in domestic new car sales that go beyond a backlash to the April sales tax hike," he said, adding that new car sales were down by double digits after the tax hike.

 

Both Toyota and Honda cut their domestic vehicle sales targets when they announced their second-quarter results in November and October respectively.

 

Ike, who also serves as Honda chairman, said Prime Minister Shinzo Abe's stimulus policies - known as Abenomics and designed to end years of deflation - had failed to encourage spending on big-ticket items like cars.

 

"Abenomics is not having clear traction across the country and even though as an industry we benefit from the weaker yen, we feel a sense of crisis about the fact that cars are actually not selling," he said.

Don't worry - next quarter will be great... Aso, Kuroda, Abe, and Suga all promised...

Ike also said plunging emerging-market currencies were having an "undeniable" impact on Japan's auto sector.

 

Automakers could be hit hard by the erosion of purchasing power in key emerging markets, such as Russia, where the rouble dived as much as 20 percent against the dollar earlier this week and is down by some 50 percent against the U.S. currency so far this year.

 

Asian automakers see Russia as a particularly attractive market, and the currency volatility struck just as they were ramping up their presence in the country.

*  *  *
So not "unequivocally good" for the world economy then?

 

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Thu, 12/18/2014 - 19:56 | 5570676 Atomizer
Atomizer's picture

Janet Yellen is working a city of dust.

Siouxsie & The Banshees - Cities In Dust

Thu, 12/18/2014 - 20:09 | 5570717 HedgeAccordingly
HedgeAccordingly's picture

all about the Yen being used as a throttle... .. worked like a charm the last two months.. if that is the case.

http://hedgeaccordingly.com/2014/11/japan-dips-into-recession-as-shinzo-...

Thu, 12/18/2014 - 20:13 | 5570732 Atomizer
Atomizer's picture

See my post below.

Thu, 12/18/2014 - 20:30 | 5570788 Latina Lover
Latina Lover's picture

Seems to me that Japan is committing mass seppuku.

Thu, 12/18/2014 - 21:04 | 5570909 knukles
knukles's picture

And did anybody here think that "Abenomics" (by any other name either, aka more of the same old shit again) would do anything different?
Anybody here think that raising taxes on consumers when in a recession/depression/deflationary environment was gonna help?
Did anybody there figure any of this shit out?
Don't look at me, I'm guiltless

throws hands in air walking off mumbling

Thu, 12/18/2014 - 22:53 | 5571203 TheReplacement
TheReplacement's picture

Well, yeah actually.  It seemed clear that this was not the ordinary run of the mill manipulation but a go for broke variant.  We should have expected the results to be duly affected and it seems they have been, for the worse.

There only one thing to do.  Reload those helos and go back out there and do it again, and again, and again.  I don't care if we have to stay out here all night.  We are going to keep dropping debt bombs until we get it right.

Thu, 12/18/2014 - 23:21 | 5571293 KnuckleDragger-X
KnuckleDragger-X's picture

We had to destroy the village in order to save it....

Thu, 12/18/2014 - 20:10 | 5570722 kaiserhoff
kaiserhoff's picture

I'll buy a honda, when the loan rate is -5%...,  and if you think that's nuts, ridiculous, could never happen,

   ask the batty old broad named Yellen.    Interesting times.

Thu, 12/18/2014 - 20:38 | 5570811 Atomizer
Atomizer's picture

You should buy your car in cash. You'll own it and not end up paying what http://www.autobytel.com/kelley-blue-book/ tells what the depreciation cost is, or resell for another lease contract.

Buy high end cars, not..US government taxpayer subsidized bullshit.

 

Yugo Car Commercial 1986

Thu, 12/18/2014 - 20:45 | 5570842 Falling Down
Falling Down's picture

I always pay cash. Haven't had a lemon, yet.

Thu, 12/18/2014 - 21:05 | 5570887 A Nanny Moose
A Nanny Moose's picture

I am confused. Is Yugo suppose represent high end? Quality is not necessarily always a function of capital invested. I've encountered several dead Mercs (post xler versions.), and driven some flakey BMWs.

All your automotive activities are belong to the State anyway....

https://www.youtube.com/watch?v=FAvQSkK8Z8U

For now, I will take my 14 year old Subaru with 280K miles. Just drove it half way across country through that pre-Thanksgiving arctic blast. Worked like a champ.

Just my luck, I will go outside, and it won't start.

Thu, 12/18/2014 - 21:12 | 5570931 Atomizer
Atomizer's picture

No, it represents low end government cash for clunkers bullshit. Remember?

Our Cash For Obama's Clunkers

Thu, 12/18/2014 - 22:23 | 5571117 sun tzu
sun tzu's picture

Maybe the central banks can start buying inventory in order to "stabilize" the markets. They already buy stocks, bonds, mortgages, CDO's and whatever other financial instruments hidden in their books. They can now buy cars, equipment, machinery, big macs etc

Thu, 12/18/2014 - 20:03 | 5570691 SickDollar
SickDollar's picture

who said kamikaze was  dead ?

 

 

 

It's a big club and you ain't in it BITCHEZ

 

Thu, 12/18/2014 - 20:05 | 5570693 Philo Beddoe
Philo Beddoe's picture

What they need is to build is a car with a big rear end with nothing under the trunk. 

The all new Toyota Kardashian.

Thu, 12/18/2014 - 20:09 | 5570713 negative rates
negative rates's picture

Cause when there is too much junk in the trunk, you are in trouble.

Thu, 12/18/2014 - 20:15 | 5570727 Philo Beddoe
Philo Beddoe's picture

If you are heading into a snow bank in neutral...put Kim in the back seat and pull the emergency break. 

Thu, 12/18/2014 - 21:07 | 5570913 knukles
knukles's picture

Toyota Kardashian with the Mooch plump package

Thu, 12/18/2014 - 20:04 | 5570700 stant
stant's picture

Deflation. So many fill ups get a new Honda for free

Thu, 12/18/2014 - 20:11 | 5570724 i_call_you_my_base
i_call_you_my_base's picture

Who would have thought increasing prices on everything would impair the population's ability to maintain car payments? Who?

Thu, 12/18/2014 - 20:12 | 5570726 Ralph Spoilsport
Ralph Spoilsport's picture

Still driving my 95 Corolla which I bought used in 1999 with 33K on the odometer. No major repairs after an additional 200,000 miles. It still has the original exhaust system and still gets 35 MPG. I guess producing high quality cars that last was a bad move in the long run for Toyota.

Thu, 12/18/2014 - 20:19 | 5570748 Cautiously Pess...
Cautiously Pessimistic's picture

The new Corollas get 42 miles to the gallon on the highway and 10,000 Counts Per Minute on a handheld Geiger counter.  Hard to beat that kind of value!

Thu, 12/18/2014 - 20:26 | 5570770 Ralph Spoilsport
Ralph Spoilsport's picture

At that level, it's more like a mobile fuel rod than a car. Happy Motoring and a good fission decay to you, Sir.

Thu, 12/18/2014 - 22:56 | 5571210 TheReplacement
TheReplacement's picture

It is a convenience feature you see.  Save time in the morning by microwaving your breakfast on the way to work.

Thu, 12/18/2014 - 20:33 | 5570802 The Shape
The Shape's picture

Still driving an 89 Corolla. It's gutless, but I ain't on the road to measure my dick.

Toyotas of the 80's and 90's were unstopable compared to the recall magnets they put out today.

Thu, 12/18/2014 - 20:43 | 5570836 Ralph Spoilsport
Ralph Spoilsport's picture

These cars do everything pretty okay but don't excel at anything. I think my 95 is considered Generation 4 and they started going downhill after that. An 89 like yours is even more bulletproof according to comments on Toyota Nation's forum.

Thu, 12/18/2014 - 21:03 | 5570907 The Shape
The Shape's picture

Yeah I think 96-97 might have also been a similar shape/build to yours. After that I know they went to shit.

Thu, 12/18/2014 - 22:40 | 5571170 sun tzu
sun tzu's picture

The early 2000's are shit. I tried to buy a used one and every one I looked at was crap. The Camry's are still solid though. I also have a 2008 Highlander with $150K miles and runs like new. The only major repair was the water pump at 135K, more of maintenance though as they normally go out at 60-90K for most other cars. Other than that, regular maintenance and replaced the brakes at 95K. 

Thu, 12/18/2014 - 22:59 | 5571213 TheReplacement
TheReplacement's picture

You can measure a Corolla's quality by the ground to body height.  Lower=gooder.

Thu, 12/18/2014 - 22:27 | 5571131 NoWayJose
NoWayJose's picture

Rolling along in a '93 Corolla - closing in on those 'Collector' or 'Classic' plates...

Sat, 12/20/2014 - 05:29 | 5574999 Kobe Beef
Kobe Beef's picture

Had a '94 Camry that took me through college and my first job. Factory everything, but it could pull 130 on the Highway before it shook. I bought it used and put over 150,000 miles on it. 

Only thing that could stop it was a head on collision at 45 mph with a drunk driver coming the other way. I walked away without a scratch. but alas, my Camry would never ride again.

R.I.P., good buddy, you were what a car should always be.

Thu, 12/18/2014 - 20:13 | 5570728 Atomizer
Atomizer's picture

IB are going to jack rabbit Cap & Trade in January 1, 2015. Watch the missing trillion hit the Goldman Sachs piggy bank.

Thu, 12/18/2014 - 20:23 | 5570754 Duc888
Duc888's picture

 

 

They need to panic more about their frames rotting out completely on their pick up trucks.

 

My buddy had a tacoma....frame rotted to pieces in 130,000 miles.  Toyota bought the truck back for $4K over blue book and sold him a new truck for $4K under dealer invoice and 1% interest.  New truck has 38K miles on it and the frame is rotted out from under it.  Now they want to impound his truck while they put a new frame under it (no charge)....they said he could be out of a vehicle for 12-16 weeks.

 

https://www.youtube.com/watch?v=gxK3vFNyYxQ

(above vid is not my friends truck)

maybe the dump bed was just an option or something....LOL.

Thu, 12/18/2014 - 20:31 | 5570786 Freddie
Freddie's picture

That is bizarre.  What a piece of junk and they are not cheap.

Thu, 12/18/2014 - 20:55 | 5570869 Ralph Spoilsport
Ralph Spoilsport's picture

Incredible. That truck looked like a recent model just like you said.

Thu, 12/18/2014 - 23:06 | 5571245 Atticus Finch
Atticus Finch's picture

Radioactivity is hard on frames.

Thu, 12/18/2014 - 20:26 | 5570779 kchrisc
kchrisc's picture

"Fat lady, you're on in 5."

The banksters need to repay us.

Thu, 12/18/2014 - 20:28 | 5570781 The Shape
The Shape's picture

Krugman better get Toyota on the phone and explain how this all works.

Thu, 12/18/2014 - 20:50 | 5570835 ThroxxOfVron
ThroxxOfVron's picture

"Krugman better get Toyota on the phone and explain how this all works. "

A Toyota on the Krugman might better explain how this all works in the end.

Thu, 12/18/2014 - 20:59 | 5570892 Eyeroller
Eyeroller's picture

Krugman only travels in the backs of limos...

Thu, 12/18/2014 - 21:10 | 5570919 knukles
knukles's picture

Driven by underpaid minority chauffeurs

Thu, 12/18/2014 - 20:31 | 5570787 Peter Pan
Peter Pan's picture

Everyone should encorage their children to start observing the demise of Japan. It is a real time example of a society that will implode under the pressure of many unsustainable paradigms.

The fact there are tens of millions of people there, make it the gretest potential humanitarian disaster in the making.

Thu, 12/18/2014 - 21:02 | 5570906 GoldSilverBitcoinBug
GoldSilverBitcoinBug's picture

Japan is a study case of a civilizational collapse. Coming to US and Europe next.

Thu, 12/18/2014 - 21:55 | 5571049 silverer
silverer's picture

Yes. Nothing like having the party on your own block.

Thu, 12/18/2014 - 20:38 | 5570810 TheGreatRecovery
TheGreatRecovery's picture

Just like in USA.  Print a zillion dollars yen for insiders, creating high inflation, but don't raise the incomes of the lower-middle class or pensioners, who end up having to spend all their income on food, rent, and utilities, and are left with no disposable income to buy luxuries like cars.  A play which enriches the business-owning aristocracy short-term, but which removes the customers from their businesses long-term.

Thu, 12/18/2014 - 21:00 | 5570894 Atomizer
Atomizer's picture

Globalisation flip flops wage earners. US takes in Honda, Toyota, Hyundai, and KIA. We develop new infrastructure for Ford and GM plants. Mexico, China & Russia. This keep labor issues at a plateau. Africa market is the next hub. Everyone is schooled. Hence the currency fight.

The Cassandra Complex - One Millionth Happy Customer

Thu, 12/18/2014 - 21:55 | 5571044 silverer
silverer's picture

I remember Peter Schiff taking heat on his stand about people won't wait to spend if they think prices will fall. They will buy it because they want it now. The inflation pushers claim that rising prices make people buy now, because they know it will cost more in the future. Well, Peter, you get to ask the question: If that is true, how come sales plummeted in Japan when the tax hike went into effect? Didn't the higher prices make people cream their jeans to run out and buy a car? What? Sales dropped by double digits? Call Krugman, the economic chainsaw guy, ask for an explanation. Maybe, just maybe, the population is broke? Time to helicopter some yen out the window.

Thu, 12/18/2014 - 23:07 | 5571244 TheReplacement
TheReplacement's picture

You do realize there is a psychological and a real difference between prices going up because of inflation versus taxes? 

Hey apple, come here!  I want you to meet orange.

Oh hell, I'll spell it out.  Price inflation would mean there is more money circulating (in people's pockets).  Taxes mean there isn't more money (in people's pockets) but prices go up anyway.  So depending on the circumstance you may see different behaviors.

The plain fact is that this is a robbery.  If inflation were a well intended goal then they would have been giving the hot money to everyone, not the few.  Since the concentrated the hot money it is self evident they do not actually intend to create inflation to grow consumption.  Wealth concentration is the game and you have to see that.

Thu, 12/18/2014 - 22:03 | 5571064 Shhh dont wake ...
Shhh dont wake the VIX's picture

Perhaps when they've driven the Tuna population to extinction, The Japanese will give more attention to to consuming other items such as cars.  I'm so lost when it comes to Japan.  Why is the Yen considered a Safe Haven purchase?  Japan has more Debt to GDP than any other developed nation.  Shit. Fuck it. Who cares?  Just print moar.  A quadruple dip receission can only be Bullish for stawks!

Thu, 12/18/2014 - 22:30 | 5571140 NoWayJose
NoWayJose's picture

Cars are one of the most expensive luxuries you can skip. Not only the cost of purchase, but nearly everything else that follows. Japs are simply cutting back as paychecks and retirement checks fall behind.

Sat, 12/20/2014 - 05:54 | 5575006 Kobe Beef
Kobe Beef's picture

I've lived in Japan for awhile. Unless you're out in the sticks, you don't need a car. Public transport is safe, reliable, and efficient in the cities. Not a lot of vibrancy, but y'all can have Brooklyn, thank you. Wanna get somewhere fast without an anal probe? The Shinkansen. When you or your date really need a car, there's always a taxi, which by the way, you can be drunk and ride.. Makeout city.

Who wants to pay $8 for gas and $10 for parking anyway? If you're a young Japanese with a typical young job, you'll work all day just to keep your car parked. And who wants to pay $300 in inspection fees every year? Not this cheap bastard. I ride a bike.

 

PS: damn I'm gonna be sad when this society comes crashing down. Sure they're weird and all, but the Japanese do a whole hell of a lot of things just right. Don't know what you got, 'til it's gone.

Sat, 12/20/2014 - 06:05 | 5575012 Kobe Beef
Kobe Beef's picture

Just the other day, I went in to the Post Office to mail some Christmas stuff. Counter Lady picked me up as soon as I walked in, got me the boxes & packing tape I needed, and offered the super special small package discount rate only us insiders know about, without even asking! Fast, efficient, service with a genuine smile. I was in and out in 5 minutes. When was the last time you had a good experience at the USSA Post Office? Consult your archives. I'll wait. 

Then went down to the local 7-11 and picked up some fresh fruit, Skittles, Swishers, and a sandwich. Counter Girl was bright, friendly, and made exact change. Didn't even have to use my AK, I guess it was a Good Day.

Gonna be sad to watch all that go up in Zimbabenomics.

Thu, 12/18/2014 - 23:01 | 5571228 AdvancingTime
AdvancingTime's picture

In the world today Japan is far less competitive than many other countries and it no longer enjoys a massive trade surplus to offset its huge government spending. Public debt now stands at around 230% of its GDP and is the highest in the industrialized world. Japan is past the point where it can pay its debt service if they return to marketing their bonds at a "free and fair market" interest rate.

The moment the Japaneses stock market fails to rise enough to offset inflation and the people of Japan realize that even a weaker yen will not help we will see a tsunami of money fleeing Japan. This will constitute the end of the line for those left holding both JGBs and the yen. This has been a long time coming and I contend the cross-border flow of money leaving Japan is why some stock markets have remained so resilient . When Japan crumbles it will be felt across the world. More on this subject in the article below.

 http://brucewilds.blogspot.com/2014/05/japan-sliding-towards-abyss.html

Thu, 12/18/2014 - 23:03 | 5571232 Atticus Finch
Atticus Finch's picture

If the yen is such a basket case, can anyone explain why the Yen has been strengthening against the USD for the last two weeks?

Fri, 12/19/2014 - 00:02 | 5571372 DipshitMiddleCl...
DipshitMiddleClassWhiteKid's picture

more like the dollar is weakinng

Thu, 12/18/2014 - 23:23 | 5571300 dexter_morgan
dexter_morgan's picture

So, what, like 5 people on the planet think this a good idea? But one of them is a nobel winning economist that is good at spreading bullshit. Oh well.......

Fri, 12/19/2014 - 00:01 | 5571370 DipshitMiddleCl...
DipshitMiddleClassWhiteKid's picture

My AE86 Corolla was my favorite car I ever owned

 

 

No..im not puerto rican.

 

On a more serious note though.. .....who the fuck can afford a car?? lol..seriously?

 

The middle class of today makes 200K a year and is a vp level guy at a bank or a big corp...aint nobody making 70k a year with a family of 4 buying a car

Fri, 12/19/2014 - 02:09 | 5571543 yogibear
yogibear's picture

Let's see Japan implode. We'll get a chance to see how the US ends up.

Sat, 12/20/2014 - 06:15 | 5575015 Kobe Beef
Kobe Beef's picture

Nah, USSA will be a thousand times worse. Japan is 99% Japanese. If they can avoid a globalist-sponsored & financed East Asian War, they'll live through the collapse of the Debt State.

But, USSA is at least two brands of White and several versions of Colour that can't stand each other. Check the archives on Yugoslavia and Lebanon, that's what's coming.. I've seen the future brother, it is murder.

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