In order to search for the role model for Korean auto firms, this study examines the internationalization process of Japanese auto firms. The theory used to capture the internationalization process is stages model developed to reflect the commonly observed pattern of increased commitment to international business. In the stages model, Japanese auto firms progress from (a) export and local sales through sales subsidiaries in the 1960s and 1970s to (b) local production in the 1980s to (c) increased investment in local production across foreign countries in the 1990s to (d) regional or global integration of foreign operations (full-scale multinational R&D, marketing and production) in the 2000s. To develop into the final stage of internationalization, Korean auto firms need to deal with two opposing forces: globalization forces and localization forces. Japanese auto firms are assessed to handle the two opposing forces successfully. This study attempts to get implications from Japanese auto firms successfully dealing with globalizaiton and localizaiton forces.