00:02 John Daub: Hello, greetings to Tokyo. This is the Nissan building in Ginza. This is an interesting place to start this live stream about American cars in Japan. We've had this discussion. I've been listening to the news about the tariffs—it's been all over for the last week. We saw it coming; it wasn't unexpected. But one question from a Trump administration interview was: look, in Japan, in Tokyo, you won't see an American car.

00:32 John Daub: From that perspective, they're right. If you look in Ginza right now, you'd be hard pressed to find an American car anywhere. Ford was the last manufacturer to market cars here—they stopped in 2016 or 2017. I used to see Ford cars on the streets in Tokyo, but not anymore because they don't market them. It's not because of tariffs; it's a really hard market. American manufacturers pretty much gave up. There were a lot of reasons it couldn't work here, including the image of American cars to Japanese consumers.

01:37 John Daub: Americans make great cars in 2025, but because they haven't marketed here for over a decade, the reputation is that they're inferior to Japanese cars. If you buy one, you're paying a lot with poor service and expensive parts. It's the same with Mercedes-Benz and Audi here, but those European makers still market to Japan. They don't sell that many—Audi sells tens of thousands, which isn't a lot since 99.9% of Japanese buy domestic cars. It has nothing to do with tariffs; they just don't want American cars.

02:37 John Daub: I went through a 2019 CNBC article on this. Industry observers say the disparity comes from the unique Japanese auto market. American firms don't make cars that suit Japanese tastes. They haven't invested in dealerships, and many Japanese have an outdated idea that American vehicles are unreliable and inefficient. Roughly 40% of cars sold in Japan are kei cars (extra-small cars). The American car image is too big for Tokyo streets. Japanese don't want inefficient gas mileage and large size.

03:40 John Daub: Even though Americans have made good cars for 10-15 years or longer, the image persists because they don't market here. There's no interest in American cars. They like kei cars, which are small and fuel-efficient. Japan is crowded; drivers like the convenience of small vehicles easy to maneuver on narrow streets and fit tight parking. That's certainly on par here. American makers don't try—Ford left in 2017, GM sold only 700 cars in 2018. Do you get the picture? It has nothing to do with tariffs or cost; it's image and lack of marketing.

04:23 John Daub: Historically, Japan broke into the US market aggressively. I grew up through that era—the 1980s was amazing. Japan grew its economic presence through superior vehicles. Business means war in Japan. Japanese marketing on US TV was strong—Isuzu, Toyota commercials with no-interest financing. They built the brand while American automakers didn't. Now Toyota, Nissan, Honda are huge in America, but Americans haven't marketed here—no TV ads, nothing.

05:54 John Daub: So what's the market for American cars in Japan in 2025? Not Ford, Chevrolet, or GM as sold in the US—they do it better here. It's muscle cars. There's a big niche for them. As a kid, I wanted a Trans Am in high school. A friend bought one—it was the coolest. Like a scene from Dazed and Confused. There's a niche for classic muscle cars from the 1950s-60s, large SUVs, Cadillacs, luxurious cars. That's the Japanese image of American cars.

07:35 John Daub: Talking with Japanese friends, the biggest American brand with potential here surprised me: Jeep. I've seen more Jeeps—they actively market in Japan with a website. They hit the rugged niche. Japan drives on the left, so cars need right-side steering. Jeeps start at about 6 million yen—not bad. I'm seeing classic Jeep styles more. Japanese makers like Suzuki have mini-Jeep alternatives, cheaper than RAV4. But America excels at rugged cars—that's their market.

10:41 John Daub: Hummer does fairly good business in this weird niche too. I saw Chevrolet bicycles once—interesting, Chevy making bikes. You guys see any American cars? That might be a Tesla. Probably Tesla is the biggest American car maker here. The biggest "Ford" cars coming to Japan aren't American—they're Audi, Mercedes-Benz, especially G-Wagons for rugged luxury. Rolls-Royces too, but that's Ginza. I wish Peter von Gomm was here—he's working today. You just don't see them.

12:44 John Daub: Both countries protect their markets, but the point is Japanese don't buy American cars—it's not political, it's marketing. American makers have done a poor job here. Is it even worth it? Japanese just don't want them, nothing to do with tariffs. This came from a Patreon question from MMH about the negative impact—why punish Japan? I say no; tariffs aren't the reason. Cars from the US probably aren't even tariffed because there's no market.

14:44 John Daub: Business is war in Japan. In the 1980s, they had that mentality; deals were set up decades ago. When they say no American cars on Japanese roads, they're right—but the reasoning is wrong. Not tariffs; it's lack of marketing and not meeting Japanese demands. American companies have a hard time here. American Express worked hard to break in. Apple Japan acts like a Japanese company. You can't do things the American way—you have to invest time and money.

17:55 John Daub: With declining population and weak yen, is it worth marketing foreign goods here? Probably no, but it's cheap now comparatively. If there's a time, it's now—I could help, get in touch. Japanese market is down 20% since tariffs; it'll hurt. America is the market everyone wants—US suffers least. My biggest fear geopolitically: these tariffs pressure China hard. They're in a bad spot—demographics, one-child policy, slowing economy, unrest.

20:02 John Daub: Tariffs hurt China more than the US, putting them against the wall. If you corner someone, they lash out—that worries me. US is the market everyone needs; they'll negotiate access. It's a long-term play. Japanese makers have US plants like Honda in Ohio. I'm wait-and-see, not for or against. Struggling to find American cars here. Spring winds are strong; cherry blossoms are falling.

22:05 John Daub: Alright everybody, thanks for watching. American manufacturers haven't made much effort here. If there's a time, perhaps now. Alright, I'll see you later. Take care. Matane.