The Japanese Automotive Industry Since 2000: Causes and Impacts of Growth Disparities

Abstract

Heim offers a much-needed overview of the recent evolutions of the Japanese automotive industry. The analysis sheds light on the polarization of the Japanese auto supply chain since the 2000s. While Japan’s auto industry is still central in the Asian production network, the growth disparities triggered by the economic recession of the 1990s and 2000s have resulted in a less balanced redistribution of the sources of profit. This caused the population of the smallest firms to decline, and, in turn, the industrial compromise that fostered specific work incentives, strong ties, and a well-balanced division of labour in the supply chain to be reshaped. This also affects the product mix between internal combustion engines and alternative powertrains, which is tied to transport and energy policies.