Yen-Dollar Exchange Rate Does Not Explain Big Three Woes; Consumer Auto Purchases Based on Overall Value

WASHINGTON, Oct. 15, 2003 -- Detroit's automakers have argued that a weak yen explains their declining market share in the U.S. In fact, consumers decide to purchase automobiles based on a variety of considerations including vehicle performance, price, safety, fuel economy, quality and dealer service, according to Japan Auto Trends, the newsletter of the Japan Automobile Manufacturers Association (JAMA) released today.

"Consumers want value for their money. Certainly the fluctuating dollar affects prices and profits in a variety of ways. However, the advantages or disadvantages from fluctuating exchange rates will be rendered relatively insignificant compared to what happens at the drawing table, in the laboratories and on the factory floor," said William C. Duncan, General Director, JAMA USA.

"Exchange rates do not significantly affect the 60 percent of vehicles sold by Japanese companies in the U.S. that are built in the U.S. Furthermore, Detroit auto companies are also global. They import auto parts and vehicles from a number of countries including Canada, Mexico and Japan," Duncan added.

The newsletter also focuses on the 37th Tokyo Motor Show (Oct. 24 - Nov. 5) whose theme is "The Challenge: Driving Toward a Better Future." Visitors will be able to drive hybrid cars as well as those powered by fuel cells and compressed natural gas. This is the first year that JAMA has organized this biennial automobile and motorcycle show. Four governments, 263 companies and one organization have signed up to exhibit.

During the motor show, fifteen CEOs of all the major automobile companies from the U.S., Europe and Japan will meet to discuss environmental and safety technologies and ways governments and industry can work together to establish a common set of vehicle standards.

The newsletter's quarterly "Executive Highlights" features Iwao Nakamura, President of Nissan Diesel Motor Co., Ltd. As the long ailing Japanese truck industry begins to see signs of recovery at home, Mr. Nakamura is pursuing a multi-pronged growth strategy.

Nakamura attributes this year's positive turnaround in heavy-duty truck sales to the enforcement of stricter environmental regulations. He said "We'll do our best to provide trucks that meet these new requirements as quickly as possible."

Improving long-range sales is another challenge. Nakamura is looking to bolster Nissan Diesel's presence in the overseas market. "We have determined China and South Africa as our strategic market centers and therefore, we will invest our operational resources accordingly," he said.

  Other stories featured in the newsletter include:

  * Purchases of U.S. auto parts set a new record of $37.34 billion in 2002;
  * Japan's heavy-duty truck industry's increased sales and profits;
  * New design approaches to vehicles by Japan's automakers;
  * A Look Back: The First Tokyo Motor Show in 1954.

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 Washington, D.C., Brussels, Beijing, and Singapore.