Japanese carmakers have certainly been successful over the past 3 decades, but there are some factors in the American market that will affect profitability a few years down the road. Changes in profitability affect retained earnings, R&D and general business practices.
First would be currently having only minimum pension payments, since most Japanese factories and workers in the US haven't been around long enough to have retirees.
Second, US domestic carmakers may create a pension liability crisis campaign to get some form of legislated relief.
The Japanese carmakers continue to reduce labor costs in Japan by creating a working poor class of blue collar, day-labor workers. They have specific job descriptions laid out in such simple, viewable instructions that a person can be assembling something in 15 minutes.
They have completely transformed the labor market. More and more employees without pensions, bonuses, company sponsored health insurance, paid holidays, union representation, work rules, accident insurance, etc. And the hourly rate is at unskilled labor rate.
Some companies have conditions not unlike migrant workers now. Toyota contracts with companies (started by retired executives) that bring in unskilled labor from rural areas and houses them in dormitories. They are bused to the factory everyday for month-long contracts. They have to complete the entire month to get the full wages paid and have to work six days per week with no extra pay for overtime work since they are not covered by law as contractors.
Will the US carmakers do some of this?
It's a grim picture of a future that has white collar compensation absorbing the profit of blue collar loses. You might even call it a return to feudalism.
