*

Trade deals lower tariffs on U.S. car imports, some safety

rules

also eased

*

Roads in Europe and Japan narrower than in U.S. fuelling

compact-car culture

*

Experts say Detroit must adapt to market needs to sell

cars

By David Dolan, Maki Shiraki and Marie Mannes

TOKYO/STOCKHOLM, August 7 (Reuters) - Donald Trump is

right that Japan and Europe buy few American-made cars - but it

has little to do with trade barriers. From Tokyo to London, many

consumers see Detroit's offerings as simply too big and too

gas-guzzling.

That view has made Chevrolets and Cadillacs a hard sell, and

a rare sight, in cities full of slimmer cars from the Toyota

Corolla to Honda Civic, Volkswagen Golf and Renault Clio.

Trump often complains about what he sees as a refusal to

accept U.S. cars while the Japanese and Europeans sell millions

of automobiles a year into the United States. In recent trade

deals, both markets agreed to drop or ease safety tests on

American vehicle imports. Europe will lower levies on U.S. cars.

But it may take more than a change of rules and lower

tariffs to convince Japanese and European consumers, who contend

with narrow roads and painfully tight parking, to buy big

American-made Ford F-150 trucks and Cadillac Escalade SUVs.

"American cars are designed for wide roads and freeway

driving, so handling them on narrow Japanese streets can be

tricky. It takes a bit of technique," said Yumihito Yasue,

president of Johnan Jeep Petit in Tokyo, which imports and

services vintage cars from the United States. His customers tend

to be enthusiasts in their 50s and 60s who grew up seeing

American cars on TV and in movies.

On a recent weekday, he was servicing two Chevrolets, a

lustrous brown 1971 Nova and a low-slung 1986 El Camino, both

with their steering wheels on the left. In Japan, steering is on

the right.

Yasue inherited his love of American cars from his father,

who started the business four decades ago and would travel to

California to scout for cars. Yasue took over after his father

died nine years ago, and sells about 20 vehicles a year.

"What makes American cars special is the design. Compared to

Japanese or German cars, the body shape is more beautiful.

Especially the lines, like the rear lines and the fenders," he

said.

Some 3.7 million new cars were sold in Japan last year, with

a third of those mini or "kei" cars - tiny, fuel efficient

vehicles not produced by American automakers. Overall, foreign

cars accounted for 6% of new car sales, data from the Japanese

Automobile Manufacturers Association showed.

Of those, around 570 Chevys, 450 Cadillacs and 120 Dodges

were sold, data from the Japan Automobile Importers Association

showed.

Ford pulled out of Japan almost a decade ago. Tesla

makes cars sleeker than some of Detroit's and is

becoming more popular. The data does not give a breakdown for

the EV maker.

'WE DON'T BUY FORD F-150S'

In Europe, smaller locally-made U.S. cars have done well:

models like the best-selling Ford Puma and the older Fiesta. But

over the past two decades, Ford and General Motors ( GM ) have

pivoted towards larger pickups and SUVs, vehicles less suited to

Europe's narrow streets and compact-car culture.

Ford, a big player in Europe from the early 1900s, has seen

sales in the region fall sharply, from 1.26 million vehicles in

2005 to just 426,000 in 2024, according to data from the

European Automobile Manufacturers' Association (ACEA). Its

market share dropped from 8.3% to 3.3%.

"We don't buy Ford F-150s, that's not what our roads are

scaled for, it's not what our customers want," Andy Palmer,

former CEO of Aston Martin, told Reuters.

GM exited Europe in 2017, selling Opel after pulling back

Chevrolet, but returned with its Cadillac Lyriq last year. It

sold a mere 1,514 of the U.S.-made SUV, according to auto data

firm Jato.

A GM spokesperson said Cadillac was growing its all-electric

lineup in Europe, and the vehicles had been well-received in the

markets where they were launched. A Ford spokesperson said the

firm exported "passion products" to Europe like the Bronco and

Mustang, alongside locally-made models tailored for the market.

Clive Sutton, a British car dealer in London who sells

luxury American models, said his buyers were drawn to the rarity

of vehicles like the giant Cadillac Escalade. But he admitted it

was a challenge.

"There are people that want that car because of its

exclusivity and its perceived status," Sutton said. "But it's

not the most easy car to find a parking space for, certainly in

central London."

COMPETITIVE MARKET

Trump has also put pressure on South Korea to open its

market to American cars and said duty-free access was part of

the trade deal the two countries agreed last week.

There, imported vehicles account for less than one-fifth of

the car market and U.S. models for only 16% of the imported car

segment, which is dominated by German rivals, according to data

from the Korea Automobile Importers & Distributors Association.

German manufacturers have also carved out a strong presence

in Japan's luxury market. Mercedes-Benz sold more than

53,000 vehicles last year, making it the most popular foreign

brand, followed by BMW at more than 35,000. Japanese

automakers say Europeans have been successful because they

committed the time and resources to the market.

Detroit carmakers, meanwhile, are often associated with

left-hand drive cars, which are more challenging to drive on the

left-hand side of the road.

But some U.S. manufacturers are changing.

GM has offered the Corvette only in right-hand drive since

the eighth generation version went on sale in 2021. That may be

one reason why some 80% of buyers are new customers, a GM

spokesperson said. The Corvette is the only model Chevy offers

in Japan, and it has sold fewer than 1,000 of them a year for

the last decade.

GM this year announced plans for a line-up of

right-hand-drive Cadillac EVs and deliveries of the Lyriq

started in July.

'WOW, A FOREIGN CAR'

Jeep, which sells right-hand drive models, has been the most

popular American brand for more than a decade, the importer data

showed. It sold just shy of 10,000 vehicles last year in Japan.

Yukimi Nitta used to drive a "kei" car but she was drawn to

the Jeep Wrangler's appearance, which she described as

"friendly" and "outdoorsy". The 42-year-old hair salon owner is

now on her second Jeep - a limited-edition beige model - and

hopes to switch again to another limited-edition colour. Parking

is tight but manageable, she said, and two of her friends have

since bought Wranglers.

"People often say, 'Wow, a foreign car!' But once you drive

it, it feels totally normal. I wish more people would try it,"

she said.

While the Wrangler does burn through fuel quickly, the

resale value is good, making it possible to switch out colours,

something owners do, Nitta said.

A spokesperson for Jeep owner Stellantis ( STLA ) said it

actively promoted owner events. In July, it announced a

collaboration with the "Jurassic World" movie series featuring a

limited-edition pink Wrangler, the spokesperson said.

Big American cars and trucks might find it hard to follow in

Jeep's tracks.

Daniel Cadwell, an American living in Tokyo, exports used

Japanese camper vans and wagons to the United States. He said he

was struck by the size of American cars whenever he went home.

"They are just excessively big," said Cadwell, who runs

Javan Imports in Portland with his U.S.-based business partner.

"I think it is highly challenging for a car of that sort to be

seen as attractive in Japan."