Breakthrough: Japan Automobile Manufacturers Association Accepts GM As A Member

WASHINGTON, March 28 -- The Japan Automobile Manufacturers Association (JAMA) welcomed General Motors Japan Ltd. (GM Japan) to membership representing another tangible sign of the increasingly global nature of the world's auto industry, according to Japan Auto Trends, JAMA's newsletter released today.

``GM Japan joins JAMA at a time of extraordinary challenge. Japan's economy is weak; automobile sales are flat; the market is shifting towards smaller cares and competition is increasing. Their participation in JAMA will bring added value to the association and even a stronger sense of unity and mission to meet the challenges facing the auto industry,'' said William C. Duncan, General Director, JAMA USA.

GM Japan produces vehicles jointly with Suzuki Motor Corp. in Japan. GM Japan and Suzuki recently launched the new Chevrolet ``Cruze,'' a small car built jointly. GM Japan is a wholly owned subsidiary of Detroit-based General Motors Corp. or GM.

The newsletter's quarterly ``Executive Highlights'' features the newly appointed CEO for GM Japan, Raymond Grigg. Mr. Grigg has set three goals for GM Japan, which sells Cadillac, Chevrolet, Opel and Saab in Japan:

* Increasing sales of GM vehicles in Japan this year by 2,000 vehicles; * Introducing by year's end two new types of cars into the Japanese market; * Setting up 20 exclusive Opel dealerships in Japan by the end of 2003. Opels were formerly sold only through Yanase dealerships.

Mr. Grigg told Japan Auto Trends ``I would like to contribute to the Japanese auto industry by utilizing GM's resources all over the world.''

The newsletter also reports that BMW, Land Rover and Ford have announced optimistic sales forecast and unveiled new marketing plans aimed at bolstering their stake in the Japanese vehicle market. BMW said it expects at least a 10 percent gain in unit volume this year primarily because of the launch of its remodeled 7 series and the all-new Mini as well as a new on-line ordering system for its local dealer network.

Land Rover, which Ford owns along with Jaguar and Volvo, plans to increase the number of dealership outlets from 73 to 115. Ford plans to sell 25,000 passenger cars by 2005. According to Ford, a key to growth is the introduction of the new-generation Fiesta subcompact in 2003.

Other stories featured in today's newsletter include:

The quest for viable fuel-cell technology; The popularity of small and mini cars in Japan; Honda's brisk sales of its subcompact ``Fit;'' The merger of the Japan Motor Industrial Federation (JMIF) and the Japan Federation of Automotive Employers' Associations (JFAEA) into

JAMA this May.

Japan Auto Trends examines developments in Japan's auto markets. This publication and all back issues are available on the new JAMA website, http://www.jama.org . JAMA, located in Tokyo, has offices in Brussels, Singapore and Washington, D.C.