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Wed, Oct 24, 2001 - Page 19 News List

Small cars to star at Tokyo Motor Show

The subcompact -- a small but roomy car -- is expected to attract most of the attention at this weekend's show

AP

Suzuki Motor Corp Chairman and CEO Osamu Suzuki unveils the new compact electric concept vehicle Covie for the Tokyo Motor Show during a GM alliance partners news conference in Tokyo yesterday. The show takes place amid a global economic slowdown in the wake of the Sept. 11 attacks in the US.

PHOTO: REUTERS

At the Tokyo Motor Show opening this weekend, Japan's automakers will be showing their latest contenders in one of the most competitive sectors in the global market -- small cars that are efficient, stylish and roomy.

While many of these subcompacts won't be sold in the US, where bigger cars dominate, they hold the secret to why Japanese carmakers repeatedly beat US rivals in turning out fine-tuned, best-selling cars such as the Toyota Camry and Honda Accord.

Winning the small car battle at home is critical for Japanese automakers, who are concerned about sales in the US after the Sept. 11 terrorist attacks.

Japan is in the middle of a deep economic slowdown of its own. And that, too, is expected to force more Japanese to turn to cheaper, small cars, which start at about ?1 million (US$8,300). The small cars also stand a good chance in the European market, where the Japanese are still fledgling players but hoping to do better.

Alongside a futuristic car that links to the Internet from Toyota Motor Corp and Honda Motor Co's just-for-fun experimental vehicle whose seats are collapsible motorcycles, the small cars are the big stars of the Tokyo Motor Show.

The Japanese say the finesse of packaging sophisticated engineering and safety features in a tiny car gives them a definitive edge in designing larger small cars targeting overseas markets.

"If you can do the job with a small car, it's far easier to do it with a bigger car," said Satoru Tai, product chief designer of Tokyo-based Nissan Motor Co. "The skills are useful in competing in other markets."

The"mm" from Nissan, a concept model, or an idea in the works, for the March small car slated for sale in February, will be among the cars displayed at the Nissan booth at the auto show.

The March is the first car totally produced under Nissan's alliance with French automaker Renault SA. Since taking a 36.8 percent stake in 1999, Renault has helped return a money-losing Nissan to profitability.

The March -- undergoing the first remodeling in a decade -- underlines Nissan's attempt to challenge the domination of Toyota and Honda in the Japanese small-car market. The March, sold as the Micra in Europe, shares the same platform and other auto parts with the Renault Clio -- a common way carmakers forming alliances are cutting costs.

In wooing drivers, Nissan is pushing a his-and-hers version of the small car.

March targets young women with its gentler, rounder look and roomy glove compartments. The more angular, sportier-looking Cube is the counterpart that targets young men.

"Our brand is weak against Toyota and Honda," Nissan Vice President Patrick Pelata said.

Weaker still are the US brands, which have developed a reputation as clunkers and struggled for years to appeal to Japanese buyers.

Small cars from the US such as the Chrysler Neon and Ford's Ka and Focus have more or less bombed in Japan. Cars from General Motors Corp and Ford Motor Co and the Chrysler cars from DaimlerChrysler still make up only about 1 percent of Japan's auto market.

Ford recently acknowledged that sales in Japan will total about 12,000 vehicles this year and fall short of its target of 15,000.

"Ford is starting to realize that Japanese drivers are very picky about details like the paint job and won't stand for the tiniest flaw," said Eiji Iwakuni, president of Ford Japan.

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