Japanese Automakers Import Parts from Their U.S. Subsidiaries

02/22/96

NikkeiNet reported that Japanese automakers are beginning to import parts made in the USA as protection against dollar/yen fluctuations. At the current currency exchange rate, Japanese automakers consider U.S. made parts inexpensive. They are buying U.S. made parts from Japanese affiliates in the U.S.

Isuzu's affiliate Zexel Corp. is boosting its annual production capacity of electrical components (capacitors used in air conditioning) from 600,000 units annually to 800,000 units. Another Isuzu affiliate, Automobile Foundry Co., has raised exhaust pipe production from 1,000 tons to 1,600 tons annually.

Paul Dever -- The Auto Channel