AAMA Says U.S. Sales in Japan Up, but Outlets Low

09/20/96

Nikkei English News reports that a recent study by the American Automobile Manufacturers Association (AAMA), issued for the anniversary of summer 1995's U.S.-Japan bilateral auto trade agreement, shows that although U.S. car sales in Japan are rising, the number of sales outlets for U.S. vehicles in Japan remains low. The industry association also warns that the weak yen, guided by the Bank of Japan, undermines further sales growth for U.S. vehicles. The AAMA has urged the U.S. government to act.

Between January and August of 1996, the big three U.S. automakers' sales of vehicles in Japan, at to 82,554 units, rose substantially, up 32.6% compared to the same period a year earlier. U.S. automakers hope to see annual sales of about 300,000 units in Japan by year 2000.

Sales outlets for U.S. automakers in Japan, on the other hand, total 107. Last year, the U.S. government set a 200 outlet target, to be reached by end of 1996. Although 58 dealers affiliated with four Japanese automakers (Nissan, Mazda, Honda, and Daihatsu) have participated in selling U.S. cars, the AAMA points out that Toyota and Mitsubishi have not made such deals.

Additionally, the AAMA indicated that the auto parts sector in Japan has shown little improvement for U.S. companies. Sales of U.S. parts rose only 4.6% to 3.38 billion dollars. The expected annual increase had been set at 14%.

Paul Dever -- The Auto Channel