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AAMA President Gives `State of the Auto Agreement' Address in Japan

17 July 1997

AAMA's Card Gives `State of the Auto Agreement' Address in Japan; `Automotive Trade Patterns are Sharply Deteriorating,' He Tells FCCJ

    TOKYO, July 17 -- American Automobile Manufacturers
Association (AAMA) President & CEO Andrew H. Card, Jr. told the Foreign
Correspondents' Club of Japan (FCCJ) today that, "By nearly every measure,
U.S.-Japan automotive trade patterns are sharply deteriorating."
    In remarks which outlined the continuing concerns of America's Car
Companies, Card told FCCJ members that not enough high volume vehicle outlets
in Japan have agreed to offer imported vehicles for sale since the signing of
the U.S.-Japan Auto Trade Agreement in 1995.  The problem, Card said, is due
to a lack of supportive action by the Japanese government and Japanese
automakers.
    Card's Tokyo address was accompanied by the release of the AAMA Japan
Report for July.  It reported that Chrysler, Ford and General Motors added
five new outlets in June.  The total number of outlets opened since 1995
stands at 126, a figure which is far below automakers' expectation of 200
outlets for the first year of the auto pact, and even further behind their
expectation of 400 outlets by the end of 1997.
    Card also used the FCCJ forum as an opportunity to explain how the weak
yen has affected vehicle sales in both the U.S. and Japan.  Japanese vehicle
exports to America have surged this year, while sales of Chrysler, Ford and GM
cars and trucks in Japan have slumped.  AAMA members' 1997 sales through June
total 52,559 vehicles, a 13.6% decline from the same six-month period last
year.  June sales alone fell 23.6% from the same month in 1996.
    The AAMA Japan Report is a periodic report on the results of the
U.S.-Japan Auto Trade Agreement.  To obtain a copy, contact Scott Kennedy at
202-326-5534.
    AAMA is the trade association whose members are Chrysler Corporation
, Ford Motor Company and General Motors Corporation
.  Visit AAMA's site on the World Wide Web at http://www.aama.com.

SOURCE  American Automobile Manufacturers Association