Japan's Automakers Show Their Mojo

Nissan's GT-R speedster is unveiled at the Tokyo Motor Show as local carmakers roll out performance models to liven up a lackluster image

by Ian Rowley

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If prizes were awarded for hype, Nissan's (NSANY) long-awaited GT-R would be a cinch for the Car of the Year award. Launching the $66,000 (the cost in Japan) brute Oct. 24 at the 40th annual Tokyo Motor Show, Nissan Chief Executive Officer Carlos Ghosn was at his showman best as he unveiled the GT-R. "This is no mere muscle car and no delicate thoroughbred," Ghosn told a rapt audience. "The GT-R is up for any competitive challenge: anyone, anywhere, anytime."

Most onlookers on the packed show floor appeared to agree that the GT-R, which revives the marque after a five-year hiatus, was worth the wait. Powered by a 3.8-liter, twin turbocharged engine, the 480-horsepower GT-R whizzes from 0 to 60 miles per hour in just 3.6 seconds, can stop again in just 37 meters, and exceeded speeds of 170 mph during testing on Germany's Nürburgring race circuit. Nissan claims the GT-R is also 30% more fuel-efficient than comparable supercars on the market and meets Japan's strict emissions targets at speeds well above the country's legal limit.

Yet just as important, the GT-R is representative of a broader shift by Japanese automakers toward boosting their line-ups, and brand images, by developing performance cars. The GT-R is one of numerous new sports models (BusinessWeek, 10/24/07) from Japanese automakers that have either just gone on sale or are expected in the near future.

A Plethora of Performance Cars

Over the years the Tokyo Motor Show has carved out a reputation as a showcase for weird and wonderful, and often environmentally advanced, concept cars rather than speedsters. But anyone strolling around Day One of the show on Wednesday couldn't avoid a plethora of performance cars.

Among Japan's Big Three, Nissan had its GT-R, but there were also Toyota's TM FT-HS, or Future Toyota-Hybrid Sports, and Lexus LF-A supercar concepts. Toyota also showed off the 5.0-liter Lexus IS-F, which goes on sale in Japan in December for around $67,000 and races from 0 to 60 mph in under five seconds. Honda (HMC) isn't showing its eagerly awaited NSX performance car, as it had indicated in January, but the company is likely to unveil it soon. And Honda did display its new sports hybrid concept called the CR-Z. CEO Takeo Fukui added that the CR-Z concept would go on sale in the near future.

Japan's second-tier car companies are also weighing in. Mazda (MZDAF), a company that has rebuilt its brand around a lively image, is showing the exciting Taiki concept, which will likely form the basis for the next version of its popular RX-8. And Subaru also used the Tokyo show to launch its 2-liter, turbocharged Impeza WRX STI. "This is a symbol of Subaru's commitment to driving performance," says Hiroshi Mori, general manager responsible for the car at Fuji Heavy Industries, Subaru's parent. Mitsubishi Motor MMTOF meanwhile showed its new Legacy Evolution X, which like the Impreza has its roots in rally car racing. It went on sale in Japan in October.

Plenty of Cash to Fund Roadsters

Even minicar makers are getting in on the act. Suzuki, a company better known for econoboxes and cheap sport-utility vehicles, is showing the Kizashi2 concept, powered by a 3.5 liter V6 engine. And Daihatsu, Toyota's minicar arm, is showing the OFC-1, a 659-cc turbocharged two-seater roadster.