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Automakers Call for 'Coordinated Intervention' to Stabilize Yen

16 June 1998

Automakers Call for 'Coordinated Intervention' to Stabilize Yen

    WASHINGTON, June 16 -- The following is a statement by Andrew
H. Card, Jr., President & CEO of the American Automobile Manufacturers
Association (AAMA), in reaction to the yen's ongoing deterioration:

    "As the value of the yen continues to plummet, the time has come for
coordinated intervention by the U.S. and other G-8 countries.  Although the
U.S. market remains vibrant, the weak yen is seriously impeding American
export opportunities and fanning the flames of Asia's economic crisis.
Americans may soon find themselves trapped in the financial aftermath.  We
urge the G-8 to coordinate intervention to prevent further damage to the
global economy.
    It is also imperative that the Government of Japan take swift action to
cut taxes and stimulate demand.  Japan must assume its leadership
responsibilities in Asia.  The government can start by eliminating the
consumption tax it imposed a year ago and enacting permanent tax cuts to
encourage consumer spending.
    The negative impact of the yen is encouraging many Japanese manufacturers
to attempt to export their way out of recession.  This trend cannot continue
without the risk of increasing damage to other economies around the world."
    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.