Trump needs extra American pick-ups in Tokyo and London. That could be a tough promote

[ad_1] By David Dolan, Maki Shiraki and Marie Mannes

TOKYO/STOCKHOLM, August 7 (Reuters) -Donald Trump is correct that Japan and Europe purchase few American-made vehicles - however it has little to do with commerce boundaries. From Tokyo to London, many customers see Detroit's choices as just too large and too gas-guzzling.

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That view has made Chevrolets and Cadillacs a tough promote, and a uncommon sight, in cities stuffed with slimmer vehicles from the Toyota Corolla to Honda Civic, Volkswagen Golf and Renault Clio.

Trump usually complains about what he sees as a refusal to simply accept U.S. vehicles whereas the Japanese and Europeans promote hundreds of thousands of cars a yr into america. In latest commerce offers, each markets agreed to drop or ease security assessments on American automobile imports. Europe will decrease levies on U.S. vehicles.

However it might take greater than a change of guidelines and decrease tariffs to persuade Japanese and European customers, who cope with slender roads and painfully tight parking, to purchase large American-made Ford F-150 vehicles and Cadillac Escalade SUVs.

"American vehicles are designed for broad roads and freeway driving, so dealing with them on slender Japanese streets will be tough. It takes a little bit of approach," mentioned Yumihito Yasue, president of Johnan Jeep Petit in Tokyo, which imports and providers classic vehicles from america. His prospects are usually fanatics of their 50s and 60s who grew up seeing American vehicles on TV and in motion pictures.

On a latest weekday, he was servicing two Chevrolets, a lustrous brown 1971 Nova and a low-slung 1986 El Camino, each with their steering wheels on the left. In Japan, steering is on the appropriate.

Yasue inherited his love of American vehicles from his father, who began the enterprise 4 a long time in the past and would journey to California to scout for vehicles. Yasue took over after his father died 9 years in the past, and sells about 20 autos a yr.

"What makes American vehicles particular is the design. In comparison with Japanese or German vehicles, the physique form is extra lovely. Particularly the strains, just like the rear strains and the fenders," he mentioned.

Some 3.7 million new vehicles had been bought in Japan final yr, with a 3rd of these mini or "kei" vehicles - tiny, gasoline environment friendly autos not produced by American automakers. Total, international vehicles accounted for six% of latest automobile gross sales, information from the Japanese Vehicle Producers Affiliation confirmed.

Of these, round 570 Chevys, 450 Cadillacs and 120 Dodges had been bought, information from the Japan Vehicle Importers Affiliation confirmed.

Ford pulled out of Japan virtually a decade in the past. Tesla makes vehicles sleeker than a few of Detroit's and is rising in popularity. The information doesn't give a breakdown for the EV maker.

'WE DON'T BUY FORD F-150S'

In Europe, smaller locally-made U.S. vehicles have achieved properly: fashions just like the best-selling Ford Puma and the older Fiesta. However over the previous 20 years, Ford and Basic Motors have pivoted in the direction of bigger pickups and SUVs, autos much less suited to Europe's slender streets and compact-car tradition.

Ford, a giant participant in Europe from the early 1900s, has seen gross sales within the area fall sharply, from 1.26 million autos in 2005 to simply 426,000 in 2024, in keeping with information from the European Vehicle Producers' Affiliation (ACEA). Its market share dropped from 8.3% to three.3%.

"We do not purchase Ford F-150s, that is not what our roads are scaled for, it isn't what our prospects need," Andy Palmer, former CEO of Aston Martin, informed Reuters.

GM exited Europe in 2017, promoting Opel after pulling again Chevrolet, however returned with its Cadillac Lyriq final yr. It bought a mere 1,514 of the U.S.-made SUV, in keeping with auto information agency Jato.

A GM spokesperson mentioned Cadillac was rising its all-electric lineup in Europe, and the autos had been well-received within the markets the place they had been launched. A Ford spokesperson mentioned the agency exported "ardour merchandise" to Europe just like the Bronco and Mustang, alongside locally-made fashions tailor-made for the market.

Clive Sutton, a British automobile seller in London who sells luxurious American fashions, mentioned his patrons had been drawn to the rarity of autos like the large Cadillac Escalade. However he admitted it was a problem.

"There are folks that need that automobile due to its exclusivity and its perceived standing," Sutton mentioned. "Nevertheless it's not probably the most straightforward automobile to discover a parking area for, actually in central London."

COMPETITIVE MARKET

Trump has additionally put strain on South Korea to open its market to American vehicles and mentioned duty-free entry was a part of the commerce deal the 2 international locations agreed final week.

There, imported autos account for lower than one-fifth of the automobile market and U.S. fashions for under 16% of the imported automobile section, which is dominated by German rivals, in keeping with information from the Korea Vehicle Importers & Distributors Affiliation.

German producers have additionally carved out a robust presence in Japan's luxurious market. Mercedes-Benz bought greater than 53,000 autos final yr, making it the preferred international model, adopted by BMW at greater than 35,000. Japanese automakers say Europeans have been profitable as a result of they dedicated the time and assets to the market.

Detroit carmakers, in the meantime, are sometimes related to left-hand drive vehicles, that are tougher to drive on the left-hand aspect of the street.

However some U.S. producers are altering.

GM has supplied the Corvette solely in right-hand drive for the reason that eighth era model went on sale in 2021. That could be one motive why some 80% of patrons are new prospects, a GM spokesperson mentioned. The Corvette is the one mannequin Chevy affords in Japan, and it has bought fewer than 1,000 of them a yr for the final decade.

GM this yr introduced plans for a line-up of right-hand-drive Cadillac EVs and deliveries of the Lyriq began in July.

'WOW, A FOREIGN CAR'

Jeep, which sells right-hand drive fashions, has been the preferred American model for greater than a decade, the importer information confirmed. It bought simply shy of 10,000 autos final yr in Japan.

Yukimi Nitta used to drive a "kei" automobile however she was drawn to the Jeep Wrangler's look, which she described as "pleasant" and "outdoorsy". The 42-year-old hair salon proprietor is now on her second Jeep - a limited-edition beige mannequin - and hopes to modify once more to a different limited-edition color. Parking is tight however manageable, she mentioned, and two of her buddies have since purchased Wranglers.

"Individuals usually say, 'Wow, a international automobile!' However when you drive it, it feels completely regular. I want extra individuals would strive it," she mentioned.

Whereas the Wrangler does burn by gasoline shortly, the resale worth is nice, making it attainable to modify out colors, one thing homeowners do, Nitta mentioned.

A spokesperson for Jeep proprietor Stellantis mentioned it actively promoted proprietor occasions. In July, it introduced a collaboration with the "Jurassic World" film sequence that includes a limited-edition pink Wrangler, the spokesperson mentioned.

Massive American vehicles and vehicles may discover it arduous to comply with in Jeep's tracks.

Daniel Cadwell, an American residing in Tokyo, exports used Japanese camper vans and wagons to america. He mentioned he was struck by the dimensions of American vehicles each time he went dwelling.

"They're simply excessively large," mentioned Cadwell, who runs Javan Imports in Portland together with his U.S.-based enterprise associate. "I feel it's extremely difficult for a automobile of that kind to be seen as enticing in Japan."

(Reporting by David Dolan, Maki Shiraki and Tom Bateman; Further reporting by Hyunjoo Jin in Seoul, Nora Eckert in Detroit, Alessandro Parodi in Gdansk and Andrea Shalal in Washington; Modifying by Kate Mayberry)