Toyota’s European Drive. The case study write up will be evaluated based on your

Question

Toyota’s European Drive. The case study write up will be evaluated based on your response to the following questions:
Why did the Europeans try to protect their auto industry from Japanese imports, and do you think this was fair to European consumers? Toyota has established production facilities in Europe to service European markets. Has Hyundai, Kia, or Honda followed the same strategy? If so, in which countries have they set up manufacturing, and are they the same ones where Toyota is manufacturing?
Toyota’s European Drive. The case study write up will be evaluated based on your response to the following questions:
Why did the Europeans try to protect their auto industry from Japanese imports, and do you think this was fair to European consumers? Toyota has established production facilities in Europe to service European markets. Has Hyundai, Kia, or Honda followed the same strategy? If so, in which countries have they set up manufacturing, and are they the same ones where Toyota is manufacturing?

Why did the Europeans try to protect their auto industry from Japanese imports, and do you think this was fair to European consumers? Toyota has established production facilities in Europe to service European markets. Has Hyundai, Kia, or Honda followed the same strategy? If so, in which countries have they set up manufacturing, and are they the same ones where Toyota is manufacturing?

Explanation / Answer

There are two key reasons why the Europeans tried to protect their auto industry from Japanese imports.

Self-interest: Europeans were wary about the Japanese car makers due to the fact that Toyota had become quite popular. They wanted to boost their own auto industry and domestic consumption is one way to do that. In order to do that, they had to restrict import of foreign vehicles and thus wanted to prevent Japanese car imports.

Aftermath of World War 2: After the World War 2, Japan decided to reduce import of foreign automobiles in order to revive their own economy. This impacted the Europeans and they reciprocated in similar manner by restricting the Japanese auto imports.

Automobile industry a major contributor to a country’s GDP and fiscal income. Naturally, by restricting the Japanese imports, the consumers in Europe had fewer options and probably had to pay higher price for automobiles due to lack of competition. But it also helped the auto industry in Europe, this in turn helped the government earn revenue through taxes and provide better development for the public. Thus, the decision was fair to European consumers.

Kia has its European headquarter in Germany, Frankfurt. The European plant for Kia is located in Slovakia. Hyundai follows a mix strategy of local production and import. Nearly 70% of cars sold in Europe are manufactured there. The production facility for Hyundai is in Czech Republic and Turkey. Honda has manufacturing facilities at multiple locations in Europe. Some of them are UK, Belgium, Italy, Turkey and France.

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