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Foreign carmakers face tough road

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With Japanís increasingly tough economy, consumers are opting for cheaper and smaller cars. More powerful and full-sized passenger cars, which account for the bulk of foreign made cars, are just less practical in a country that has severe space limitations as well as serious fuel-efficiency restrictions. The local car market is highly competitive, and packed with highly efficient and inexpensive cars. Now, only six percent of cars are foreign made, a figure that hasnít peaked since 1996. To lessen the burden on foreign carmakers, these companies are merging with local brands.

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