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JAMA: Big Three Car Imports Lose as Europeans Gain in Japan's Market; Big Three Threat to Raise Trade Tensions 'Truly Amazing'

11 August 1997

JAMA: Big Three Car Imports Lose as Europeans Gain in Japan's Market; Big Three Threat to Raise Trade Tensions 'Truly Amazing'

    WASHINGTON, Aug. 11 -- European auto makers rode the car
sales surge in Japan prior to an April 1 sales tax increase, while Detroit's
Big Three manufacturers failed to take advantage of this consumer pre-buying
reaction.  According to Japan Auto Trends, released today, European importers'
sales rose 31.9 percent in the first three months of this year, while Big
Three sales dropped 11.3 percent.
    When the tax hit Japanese consumers, European sales fell by 21.2 percent
April through June, while Big Three sales continued downward by 27.3 percent.
Overall, European sales increased 4.8 percent outpacing the Japanese car
market for the first six months of this year, while Big Three sales were down
19 percent over this same period, according to the Japan Automobile
Manufacturers Association (JAMA) newsletter.
    "The Big Three Detroit auto companies and its trade association are
'discouraged' over their sales and want Japanese government help.  If not they
threaten further trade tensions with the U.S.  The Big Three 'discouragement'
could be premature.  Resurrecting the specter of trade tensions to compensate
for that 'discouragement' is truly amazing," said William C. Duncan, General
Director, JAMA USA.
    Japan Auto Trends also reported on JAMA members' record purchase of U.S.-
made auto parts in 1996.  In Japan's fiscal year (April 1996-March 1997) the
companies purchased $22.74 billion in parts and materials, an 8.1 percent
increase over the $21.03 billion recorded during the preceding fiscal year.
    In another article, JAMA Vice Chairman Takao Tominaga told the
Organization for Economic Cooperation and Development (OECD), at a recent
meeting on market access, that globalization in the automobile industry has
and will continue to play a key role in industrial growth and development.
Globalization should be vigorously supported by trade policies that put
consumer interests first.
    Another highlight features Saitama Mitsubishi Colt taking on a Chrysler
franchise in Omiya and Kawaguchi cities, building showrooms to showcase the
Voyager Minivan, Jeep Cherokee and the Neon.
    Japan Auto Trends is also available on the JAMA Web site at
 http://www.japanauto.com.
    JAMA is the national trade association for 13 Japanese manufacturers of
motor vehicles and motorcycles.  Its members include: Daihatsu Motor Co.; Fuji
Heavy Industries Ltd.; Hino Motors, Ltd.; Honda Motor Co., Ltd.; Isuzu Motors
Limited; Kawasaki Heavy Industries, Ltd.; Mazda Motor Co., Ltd.; Mitsubishi
Motors Corporation; Nissan Diesel Motor Co., Ltd.; Nissan Motor Co., Ltd.;
Suzuki Motor Corporation; Toyota Motor Corporation; and Yamaha Motor Co., Ltd.
JAMA, which is headquartered in Tokyo, has office in Brussels, Singapore, and
Washington, D.C.

SOURCE  Japan Automobile Manufacturers Association, Inc.