Japanese Source says U.S. Carmakers and Government Disorganized in Japan

09/19/96

Kyodo has reported that Detroit's Big Three Carmakers and the U.S. Government are "falling out of step with each other" in regards to the question of how to deal with Japan.

Ford Motor is adopting a hard-line stance toward Japan and has asked the Office of the U.S. Trade Representative (USTR) to put the Japanese auto market on a watch list for sanctions under the Super 301 provision of a U.S. trade law.

Japanese industry analysts say that General Motors and Chrysler, on the other hand, want to avoid straining their sales partnerships with Japanese automakers and dealers. GM has partnerships with both Toyota and the major imported vehicle dealer Yanase and Company; Chrysler has teamed up with Honda.

A U.S. industry source pointed out that Ford does not have to worry about ruffling the feathers of Japanese carmakers, as it recently asserted its control of Mazda Motor Corporation by sending in a former Ford official as the automaker's president, a U.S. industry source said.

On Wednesday in San Francisco, Japan and the United States opened a two-day session to monitor enforcement of the their 1995 bilateral auto trade agreement. The U.S. is expected to welcome Japan's market-opening efforts, but will likely voice concerns over the slow growth in the number of Japanese dealers carrying foreign cars. U.S. carmakers have only managed to establish half of Washington's year end target of 200 dealers.

Paul Dever -- The Auto Channel