China which is Japan’s biggest export market has shown substantial reductions in demand for Japanese made cars. The drop in demand (by a whopping 41% for Honda, 35% for Nissan, and 49% for Toyota) is the result of the feud between China and Japan over the Senkaku islands. As if to justify this assessment polls have showed Chinese tours of Japan have dropped off by as much as 70%. The loss in revenue for Toyota is estimated at nearly half a billion dollars. Recovery for Japan’s auto industry in China is not predicted until the second quarter of next year. Unfortunately for the U.S. GM has made almost no ground in the wake of plummeting sales for rivals Honda and Toyota. The biggest gainers are BMW and Audi with respective sales increases of 55% and 20%, Mercedes also showed significant growth with a 10% sales increase. One is made to wonder though if other factors are to play since the largest growth is seen in the luxury vehicle sales. Average costs of these vehicle companies are not insignificant.