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Saturn takes on Japan
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March 24, 1997: 7:30 a.m. ET
GM unit hopes to be first U.S. car maker to find success in Japan
From Correspondent Fred Katayama
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NEW YORK (CNNfn) - Japan has been one of the toughest markets for American car makers to crack, with 90 percent of drivers opting for locally-made automobiles.
General Motors' Saturn is hoping to be the first to find success there when it launches its line of cars there next month.
This isn't the first time a U.S. car company has had high hopes that its cars will be a hit with Japanese buyers. So the big question is, can Saturn succeed where other American car makers have failed?
One of the first cars to be dubbed "the Japanese car killer" was Chrysler Corp.'s Dodge Neon. But instead of revving out of showrooms, only a few sputtered off car dealers' lots.
Chevrolet also had high hopes for its Cavalier, but it didn't make much headway either.
However, General Motors remains confident that its Saturn line, which has garnered praise for quality and service -- characteristics more associated with Japanese cars -- will be a hit.
Saturn spokesman Joseph Kennedy said the company is eager for its eight dealerships to open in Tokyo next month.
"We were set up to compete against the Japanese. And competing in the home market of the Japanese is something we've always dreamed of," he said.
To get a head start, Saturn has taken to the airwaves with soft-sell ads, the type preferred by the Japanese. The company has also launched a Japanese Web site. The cars have also been modified, with the steering wheels on the right.
Kennedy is betting that the Japanese will love the no haggling approach to car buying. (136K WAV) or (136K AIFF)
And Saturn's pricing will be competitive. At $13,000 to $16,000, the cars will be priced slightly under its rivals like the Nissan Altima.
But while Saturn is going to great lengths to make its Japanese launch a success, John Casesa, automotive industry analyst at Shroeder Wertheim, said gaining market share will be difficult.
"Saturn's going to have a very tough time because Japan is a very competitive market. The Japanese are very good at making small cars. And Japanese customers are used to a very high level of quality in products and service," he said.
The timing of the introduction may also be a negative factor. Japan will hike its consumption tax April 1, the nation's economy is in low gear and the dollar is strong.
Given the maturing nature of Japan's car market and the efficiency of its producers, analysts predict success for the Saturn will be modest at best.
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