---

AAMA: Growth of Dealer Outlets in Japan Lags, Import Sales Down Sharply

3 September 1997

AAMA: Growth of Dealer Outlets in Japan Lags, Import Sales Down Sharply

    WASHINGTON, Sept. 3 -- America's Car Companies added five new
dealer outlets in Japan during July, bringing the total of new outlets to 132
since the signing of the U.S.-Japan Auto Agreement, according to this month's
edition of the AAMA Japan Report.  The number of new outlets remains well
below the 400 retail outlets expected by the end of 1997 as a result of the
agreement.
    Meanwhile, Japan sales of AAMA member companies' vehicles declined by 15.4
percent during the first seven months of 1997, compared with the same period
of 1996.  For the month of July, sales were down 23.5 percent, according to
statistics compiled by the Japan Automobile Importers Association (JAIA).
    "U.S.-Japan automotive trade relations are deteriorating," said AAMA
President & CEO Andrew H. Card, Jr. "Rather than denying the obvious, the
Japanese Government should be working to guarantee its consumers the kinds of
choices and opportunities enjoyed by consumers in other nations."

    Other highlights of August's AAMA Japan Report include:

    --  Japan's trade surplus rose 69.7 percent in July, compared with one
        year ago.
    --  Japanese and U.S. CEOs call for stable exchange rates and action on
        growing Japanese trade surplus.
    --  U.S. officials push MITI for more deregulation of auto parts.

    The AAMA Japan Report is a periodic digest which monitors the results of
the U.S.-Japan auto trade agreement.  To obtain a copy, contact Scott Kennedy
at 202-326-5534.
    AAMA is the trade association whose members are Chrysler Corporation
, Ford Motor Company and General Motors Corporation
.  Visit the AAMA's site on the World Wide Web at
 http://www.aama.com.

SOURCE  American Automobile Manufacturers Association