ABSTRACT

Recently, especially since the G-5 meeting of September 1985, the Japanese automobile industry has confronted difficult times owing to the appreciation of the yen. A number of export-oriented industries, including automobiles, electronics, machinery and steel, have been compelled to change their production strategies in view of the volatile international environment. In the case of the automobile industry, many Japanese automakers have established plants in North America, the biggest market in the world. At the same time, they have further strengthened their overseas production in Asia through both locally based KD (‘knockdown’) production, and by attempting to create an international division of labour within the region.