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Nearly 70 % of Japanese Vehicles Sold in U.S. are American Made

30 September 1997

Nearly Seventy Percent of Japanese Vehicles Sold in U.S. are Built in America; JAMA Report Outlines Results of $14 Billion Commitment Over Two Decades

    WASHINGTON, Sept. 30 -- As officials from both countries
prepare for the second annual review of the US-Japan Auto Agreement next week
in San Francisco, the Japan Automobile Manufacturers Association (JAMA) today
released a report outlining how its members have succeeded in a foreign
market: America.
    After more than two decades of work and a $14 billion investment, today
nearly 70 percent of the 3.4 million Japanese nameplates sold in the U.S. are
made in the U.S.  More than 43,000 Americans work for Japanese-American auto
companies, and another 300,000 Americans work for their dealers.
    "Market commitment pays off in Japan just as it does in the U.S.," said
JAMA USA General Director William C. Duncan.  "For example, the European auto
companies have been committed to Japan's vehicle market for more than a decade
and they have seen their sales double over the past three years and continue
to outpace the market during the first six months of this year.  If the Big
Three auto companies made a comparable commitment to the Japanese market, they
would enjoy comparable success.  Clearly this is an issue of marketing
commitment, not government help."
    The Japanese auto companies have been so successful in integrating their
enterprises into the American economy that a majority of American consumers
now view Japanese nameplate vehicles as American if they are made in America,
according to an opinion survey conducted by International Communications
Research.  Nearly three quarters believe competition with the Japanese has
resulted in more choices and higher quality vehicles.  Eighty-six percent view
the creation of jobs by the Japanese companies as a "significant contribution
to the American economy."
    "What a contrast to the shaky first steps made by Toyota and Nissan with
the introduction of the Toyopet and Datsun models into the U.S. in the late
1950s," writes JAMA USA General Director William C. Duncan in the introduction
to the new informational brochure released today on JAMA member contributions
to the U.S. economy.
    "Those models had to be withdrawn, redesigned to American tastes and
reintroduced to the market.  What a contrast to the late 1970s when virtually
all Japanese vehicles sold in America were imported.  Herein lies a story of
commitment, perseverance and dedication to the consumer ... "
    Details of JAMA companies' investment in the U.S. are contained in the
brochure, "Two Decades of Commitment to America: The Story of Investment,
Localization and Dedication to the Consumer," released today.  The brochure
also documents that while U.S. vehicle production by the Japanese continues to
rise, vehicle exports from Japan to this country shrank by 68 percent over the
last ten years.  Exports from Japan were down to 1.098 million in 1996, from a
high of 3.43 million in 1986.  Also by 1996, Japan automakers' purchases of
U.S.-built auto parts rose to a yearly total of more than $22 billion.

SOURCE  Japan Automobile Manufacturers Association, Inc.