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The chief reason for the recent decline of the fortunes of Japanese automakers was not, as posited by pop pundits, the recalls or the tsunami. It was something more insidious, something regularly overlooked by most outsiders and many insiders. It was a reduction in development spending – an eventually deadly bottom line therapy also popular by cash-starved American peers. Japanese automakers have realized the error of their ways and have returned to funding the finding of insanely great next generation car.
In the wake of the
The epicenter of the
Japanese companies are reaching for the antidote: Increased R&D spending.
“Seven automakers plan to spend 2.09 trillion yen, up 10 percent from fiscal 2010,” reports The Nikkei [sub]. Converted to dollar, that’s $38 billion, a good chunk of money. Japanese markers are “racing to develop the next-generation of environmentally friendly vehicles as well as low-priced models for emerging nations.”