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Automakers Endorse G-7 Comments on Japan's Economy

16 April 1998

Automakers Endorse G-7 Comments on Japan's Economy

    WASHINGTON, April 16 -- The head of the U.S.-based car makers
trade association commended the statement issued by the finance ministers of
the Group of Seven (G-7) yesterday in Washington.  The statement called for
urgent action by Japan to address the yen's continued weakness and to revive
its sputtering economy.
    American Automobile Manufacturers Association (AAMA) President & CEO
Andrew H. Card, Jr. said that, "The G-7 ministers acknowledged that Japan's
most recent economic stimulus package was a welcome step.  But the ministers
were also unusually blunt in insisting that Japan quickly implement an
effective program of fiscal measures and structural reforms."
    Card said that the yen's continued weakness in the wake of the new
Japanese stimulus package indicated that more action by Japan is needed.
"Temporary tax cuts likely will have a temporary effect on consumers," said
Card.  "Permanent tax cuts clearly will have a more lasting effect."
    Card said that action is also needed to address Japan's burgeoning trade
balance with the world.  "The Japanese cannot expect their problems to be
solved only through greater and greater levels of exports.  Their economy has
to be stronger and more open," said Card.  "Japan still needs to boldly
deregulate its economy and promote imports as vigorously as it has recently
pushed exports."
    "Japan's problems have become everyone's problem in the industrialized
world, and Japan owes it to its G-7 partners, and its neighbors in Asia, to
immediately open its market, cut taxes, and deregulate," Card added.

    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