Japan's Car Industry Is Scrambling To Catch Up On Technology
Japanese automakers have been lagging in the technological development of their cars. This lag is affecting the future of Japanese vehicles. We will try to uncover some of the reasons that led this to happen in Japan, a country often viewed as a technological leader of the late 20th and early 21st Centuries. Some say that it is not that Japanese automakers lost their touch, but it just might be that other newer automakers have been putting in the extra overtime to develop their vehicles. Let’s find out what happened!
Automakers Face the Technological Revolution
Most automakers never imagined the car industry would change so quickly and as radically as it has. Early automobile inventors, such as Henry Ford and others, surely had no idea that cars would be electric, and neither does anyone else know what is going to come of the electrification process that cars are presently going through. The way we see cars today will soon be part of memories of a distant past when we see the apps becoming mainstream in homes and even our vehicles. This technological revolution requires substantial investments regarding conceptualizing the new trends in many different kinds of technology. Now, even carmakers throughout the word need to do their homework; this is no different for Japanese automakers.
Japanese Automakers since the 90s
When we look back at how Japanese automakers produced cars in the 90s, we can see that they led the market with better cars and lower prices. We currently see some Korean automakers taking the lead in the performance of conventional vehicles, while Tesla and other innovative carmakers are investing in fully electric and hybrid vehicles, as well as other disruptive technologies such as autonomous driving. Toyota and other Japanese automakers have taken a more conservative strategy and held back from serious investments in the electrification of their vehicles. This stance is a reflection of the still conservativeJapanese culture that holds ontotraditional ideas lasting into modern times.
Japanese Automakers Adopt Different Strategies
The consolidated demands for autonomous cars, artificial intelligence and electrification are starting to build up in Japan. Due to this pressure, Japanese automakers have begun to show the public their projects and solutions to these growing technological demands. Tokyo has been the showcase for most Japanese automakers, and it is where we should see what the traditional Japanese automakers such as Toyota, Honda, and Nissan will be presenting to the public. Other smaller Japanese automakers such as Mitsubishi and Subaru should follow the larger players’ lead. Mazda is an innovative mid-sized automaker that is expected to make its own plans and build its own strategy to meet the new technological demands with their vehicles.
Honda Takes the Lead in Autonomous Driving in Japan
Although we have heard of autonomous driving for quite some time and watched as Tesla presented this idea to the public for quite some time, so far, few Japanese automaker have even hinted of going in this direction. Recently, Honda Motor Co. presented its electric vehicle as well as their roadmap for autonomous driving. This only came out a few months after they started intense research and development in the summer of 2017 andestablished a new laboratory for robotics and AI. It was expected that Honda would take the first steps in the direction of AI for vehicles, but most thought this would occur earlier than it did.
Traditional Toyota Dashes to Develop EV Division
Proof of Toyota Motor Corp.’s traditional view has been a constant trend for many years is that it started its EV division about one year ago. The hints that the electric vehicle would be a part of the near future were everywhere, but Toyota waited as long as it could before investing in electric vehicles. Toyota is now faced with the challenge of putting together a team that is able to develop better electric vehicles, as well as self-driving features that the market is asking for. Toyota's teams that were great at developing traditional vehicles seem to lack some of the technical skills that are behind AI, so the cost of developing this extra side of production is going to be a challenge for Toyota and many other traditional automakers.
Smaller Japanese Automakers are Expected to Delay EV and AI in Cars
Since smaller Japanese automakers such as Subaru and Mitsubishidon’t have the financial strength to be able to develop their own EV and AI in their vehicles, they will most likely delay their models or even form possible partnerships with larger Japanese players such as Nissan or Toyota. Of these two, Nissan is the most viable partnership, since it is considered to be the pioneer in EV and AI linked to autonomous driving. In the world of EV, it seems almost ironic that Japanese automakers are far behind other companies in Europe and in the USA that are taking the lead in electric vehicles.
Mazda Could Surprise the EV Auto Market
Mazda is a mid-sized Japanese automaker that has always impressed the car market with its R&D on a much more limited budget than larger competitors like Honda or Toyota would have. Mazda is revamping their lineup of vehicles to be ready for the electric future of cars. Mazda is perfecting their new motor called SkyActiv-X, which interfaces with its platform. The SkyActive-X engine will probably be in the majority of its vehicles in the near future. Additionally, Mazda is simplifying manufacturing costs and processes by underpinning almost every vehicle they make. This should result in lighter, safer, cheaper and even quieter cars that feel faster and feature better control. Mazda is expected to come out with a hybrid as well as EV models shortly.
Mobility Plans Automakers are Developing Show Promising Results on Wall Street
American automakers, such as GM and Ford, have had different resultsin attracting investorson Wall Streetthat would like to see mobility programs work. Ford has not come up with its desired investments so far, yet GM has had positive results and will most likely take the lead in this segment. Many investors feel that GM’s fleet of self-driving cars that are fully electric could be worth billions if made to work primarily with taxi services. Deliveries are an exciting and viable option for this kind of technology as well. A change in an older carmaker like GM signalizes that older car companies are simply not dinosaurs and to become a thing of the past. They too will be a part of the future of EV and AI in cars.
OTA Could Seriously Hurt Dealers
Since car dealerships make tons of money on services and repairs, the changes that come with electric cars by way of wireless updates will have a definite impact on their bottom lines. Manufacturers can improve performance and fix issues without even requiring the aid of a car dealer or certified mechanic. This technology is named OTA – Over The Air. OTA will install software on cars to enhance them and keep them working at optimal levels. Since this will ultimately reduce revenues with much less income from services, car dealers will have to cope with consumers being able to buy cars online, which is usually cheaper since consumers can easily compare prices and choose the best deal; moreover, the commission of the salesman is not included in online car shopping.
Car Emissions Scandals Keep Showing Up
Everyone remembers the first emissions scandal with Volkswagen. But it is not just the people at Volkswagen and Nissan who are in trouble. Recently, Fiat Chrysler has been facing issues in France regarding possible emissions test cheating. A recent magistrate’s report describes how there is suspicion about possible attempts to undermine the investigative work, resulting in a situation where French consumer laws may have been violated and not properly detected. This report states that emission test cheating may have occurred as far back as September of 2009, and includes the brands of Alfa Romeo, Fiat,and Jeep, but did not say which brands would be specific to any period. At this rate, we will only see the last of emission test cheating scandals when all cars are electric.