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AAMA: Unsatisfactory Results in Second Year of U.S.-Japan Auto Trade Agreement

8 October 1997

Unsatisfactory Results in Second Year of U.S.-Japan Auto Trade Agreement, Says AAMA Japan Report

    WASHINGTON, Oct. 8 -- Progress in opening Japan's market to
the products of U.S. automakers slowed dramatically during the second year of
the U.S.-Japan auto trade agreement, according to the September edition of the
AAMA Japan Report.  Sales of new vehicles and growth in the number of dealer
outlets declined in the period ended September 1997, according to the report
which marks the second anniversary of the 1995 bilateral agreement intended to
increase access to the Japanese market for U.S. automakers.
    "It's hard to believe that, just two short years after the 1995 bilateral
auto agreement, the trends in U.S.-Japan automotive trade are all headed in
the wrong direction," said Andrew H. Card, Jr., President & CEO of the
American Automobile Manufacturers Association (AAMA).
    Only 34 new dealer outlets were established in the second year of the
agreement, down from the 103 new outlets established in the first year of the
agreement.  Those figures fall far short of the goal expected under the
agreement: 200 new outlets in the first year and a total of 400 new outlets by
the end of the second year.
    Imports' share of total Japanese auto sales declined from 6.09 percent in
the period January-August 1996 to 5.41 percent for the same period in 1997.
Sales in Japan of vehicles made by Chrysler, Ford, and General Motors
decreased 16 percent during the period of January through August 1997,
compared with one year ago.
    At a September 22 press conference, Mr. Card expressed concern about the
deteriorating trade situation.  "Japan is sliding into its old pattern of
exporting its problems.  Japan is either unwilling or unable to take seriously
its obligations to be proactive in opening its market.  And that is what was
expected under the 1995 agreement," Mr. Card said.
    Other highlights of September's AAMA Japan Report include:

    *  America's Car Companies continue to make new investments in Japanese
       market.
    *  U.S. automakers offer 116 different models with right-hand drive.
    *  Excessively weak yen damages progress achieved under auto agreement.

    The AAMA Japan Report is a periodic digest which monitors 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