Global Environmental and Safety Standards: 2003 Goal for World's Leading Auto Manufacturers

Washington, D.C.—January 9th—Leaders of 13 of the world's passenger car and light truck manufacturers from Japan, Europe and the U.S. will work together this year encouraging governments to adopt a common set of standards, or Global Technical Regulations (GTRs), for environmental and safety technologies, according to the Japan Auto Trends newsletter released today.

"One of the biggest challenges for the motor vehicle industry today is the global harmonization of technical regulations," said Honda Chairman Yoshihide Munekuni, who is also chairman of the Japan Automobile Manufacturers Association (JAMA).

Munekuni added that differences in regulations are not apparent to consumers, "but for manufacturers, different regulations require different designs, which lead to additional investment for tools and dies."

In his quarterly Commentary, William C. Duncan, JAMA USA General Director, focuses on Japan's auto market for 2003. "These are lean economic times in Japan and so with the auto market. The outlook for this coming year is that vehicle sales continue to remain flat. There is little optimism for significant recovery," he said.

However, Duncan points out that while a rebound in auto sales seems premature, the pace of technological development is booming. "Japanese makers are moving aggressively to introduce hybrid vehicles to the market. The big impetus is rapidly rising environmental consciousness in Japan increasing environmental standards and an overriding commitment on the part of the auto companies to develop 'green' technology to meet the needs of society and the consumer."

Truck and bus makers are also chasing green technology as demonstrated by the wide variety of hybrid, fuel cell and natural gas vehicles displayed at the 2002 Tokyo Motor Show for commercial vehicles.

The newsletter also features a report on how China is the current strategic focus for Japan's automakers. China is becoming a fiercely competitive auto market. Both Nissan and Toyota have entered into agreements for manufacturing and sales partnerships with Chinese companies. Guangzhou Honda Automobile Co., Honda's Chinese subsidiary, has established a network of 122 dealers. In addition, General Motors (GM) opened its first GM AutoWorld showroom in northeast China, marking the first official launch of authorized retailers to sell imports.

The newsletter's quarterly "Executive Highlights" features Tadaaki Jagawa, President of Hino Motors, Ltd., a large truck manufacturer. Despite a slumping economy and vigorous competition, Hino remains an industry leader with nearly 30 percent of the Japan large truck market.

Jagawa believes the key to success lies in tailoring specifications for each customer, and as a result Hino offers more than 100 different models. Jagawa also committed to enter the North American truck market in 2004 with a 4.5-ton model based on its mid-size "Ranger Pro." TABC, which is the press parts manufacturer for Toyota, will produce the truck in California.

Other stories featured in today's newsletter include:

Automakers' plans to introduce new hybrid vehicle models; The introduction of new technology to speed up communications with manufacturers' suppliers as well as obtain unsolicited feedback from consumers on new vehicle designs; Deregulation heating up competition in Japan's taxi industry.

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