Japan takes fresh aim at Detroit

By Peter Bohan

DETROIT (Reuters) - Struggling U.S. automakers had enough to worry about heading into 2008, as American consumers were shell-shocked into a spending freeze by a credit crisis, recession fears and $100-a-barrel oil.

The last thing they needed was a resurgent Japan, whose automakers have slowly but steadily loosened the once-mighty hold of the "Big Three" -- General Motors Corp (GM.N: Quote, Profile, Research), Ford Motor Co (F.N: Quote, Profile, Research) and Chrysler LLC -- on the American auto market.

An invigorated Japan emerged this week at the North American International Auto Show, the industry's biggest annual showcase of hot wheels and cool concepts.

"We welcome competition because that is how new technology is developed for consumers," Toyota Motor Corp (7203.T: Quote, Profile, Research)(TM.N: Quote, Profile, Research) President Katsuaki Watanabe said, the carmaker announced a host of moves from plug-in electric cars to clean diesel. "But we don't want to lose," he said.

"We still have the strength to beat the market," Shigeru Hayakawa, chief executive of Toyota's North American unit, said when asked about a weaker U.S. economy.

Last year, Japanese brands collectively took a record U.S. market share of 37 percent, and Toyota passed Ford as the second-biggest brand in America. When final 2007 global sales are announced, Toyota is likely to pass GM for the first time to become the world's biggest automaker.

Growth outlooks were the same at other Japanese carmakers like Honda Motor Co (7267.T: Quote, Profile, Research)(HMC.N: Quote, Profile, Research) and Nissan Motor Co (7201.T: Quote, Profile, Research)(NSANY.O: Quote, Profile, Research) and at South Korea's Hyundai Motor Co (005380.KS: Quote, Profile, Research).

"We hope to leverage the perception of fuel efficiency that Japanese automakers have," said Ikuo Mori, CEO of Fuji Heavy Industries Ltd (7270.T: Quote, Profile, Research), maker of Subaru cars.