Analysis Of Japanese Automobile Industry International Operation

Nearly half a century, the growing auto industry has become leading industry and one of the pillar industries of the modern economy and occupies very important position in the national economy. There are the strong automobile industry in the USA, Japan and Western Europe countries among the developed countries. Up to now, Chinese automobile industry already has above 50 years history since it was established, during that short time, automobile industry has got continuous changes and China has becomes one of the biggest automotive manufacturing countries in the world. In 2010, China firmly becomes as the world's first motor production and sales power, which produces and sells more than 18 million vehicles. The automobile industry are listed the pillar industry in the "Seventh Five-Year Plan", since then, it gradually holds a significant poison in the national economy. In 2010, the automotive industry production gets to 4.35 trillion. Because in the 1980s, our country actively introduces foreign investment, each big carmaker enters China in succession and established joint venture car enterprise with Chinese partner. By establishing a joint venture, Chinese auto company improved certain technologies, but Chinese automobile enterprise does not learn the key technology of joint venturing. While Joint venture brand vehicle produced by foreign major motor manufacturers have occupied the market. The vast majority of profit gained by foreign car tycoon comes from China. The automobile giants in the world are all powerful multinational companies. Especially after 1990s, Cross-border M&A and transnational strategic alliance has increased significantly in the world automobile market, and now form a "7+4" oligopoly structure. The major 11 vehicle manufacturers have occupied more than 80% market share. In order to be the automobile power country, China must compete with others in the international market and internationalization is the only path for the automobile industry to become strong finally. After China joined WTO, Chinese automobile companies started to involve into global automobile market. Based on the real condition, each enterprise implements its own internationalization strategy. Although it is not very long since companies began internationalization, there are many cases during the process of internationalization; some companies get the successful experiences, such as Greely, a private company, which M&A Austrian transmission manufacturer DSI to gain the key technology. On the other hand, because lack of valid integration after mergers Ssangyong. Ssangyong operated poorly after M&A and bankrupted two years later, SAIC suffered heavy lossJapan is also a later comer in automobile industry and Japanese automobile industry began its globalization in 1960s.Japanese automobile industry follows a clear path in its globalization. Before 1970s, Japanese automobile manufacturers only tapped the market of Southeast Asia, South America and Australia because of less competitiveness. Japanese automobile manufacturing plants were also set up in these areas. In 1970s, Japanese automobiles were exported to America and Europe in large scales. Japanese automobiles began to lead the American market soon later, especially after the two oil crisis. After 1980s, Japanese automobile manufacturers began to set up plants in Europe and America, promoting manufacturing localization. After 2000, large Japanese automobile manufacturers began to seek for better resource distribution globally. Looking back on the development of Japanese automobile industry, globalization is an important element. Although Chinese automobile industry is different from Japanese automobile industry in their globalization environment and the approaches to globalization, the experience of Japanese automobile industry globalization provides many experience and references to Chinese automobile manufacturers.From macro industries level and micro enterprises level, this paper analyzes the internationalization process of Japanese automobile industry in detail, points to its characteristics and uses SWOT analysis to find the strengths, weakness, opportunities and treats of Japan automobile industry internationalization,.It also explains the Toyota, which is the preventive of Japanese automobile industry applying the different strategy during the different stage, analyzes the reasons and results of adopting such strategy. In the end, according to the fact, it gives some suggestion for Chinese automobile industry internationalization.