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Japan's Auto Industry Optimistic for Turnaround in 2000

24 March 2000

Japan's Auto Industry Optimistic for Turnaround in 2000; Domestic Demand for Cars and Trucks Could Grow 2 Percent

    WASHINGTON, March 23 Japan's auto executives forecast a 2
percent increase in vehicle sales this year as consumers return to the
showrooms. Some companies even see sales jumping 8 percent. This optimism
results from a January 2.9 percent increase in vehicle sales, according to
Japan Auto Trends, the Japan Automobile Manufacturers Association (JAMA)
newsletter released today.
    "After a ten year decline, the year 2000 may be the beginning of a true
recovery. Regardless of timing, the auto industry will reflect new
technologies, distribution mechanisms, consumer requirements and environmental
challenges. It will be increasingly multinational and be even more
competitive," said William C. Duncan, General Director, JAMA USA.
    The outlook for auto imports sales in Japan is also positive with the
Japan Automobile Importers Association anticipating a 4.7 percent increase
over 1999 numbers. Last year the top-selling import models were Mercedes-Benz,
Volkswagen and BMW with combined sales of 135,934.
    JAMA member companies also bought $14.607 billion in U.S.-made auto parts
during the first half of Japan's fiscal year, April 1, 1999 to September 31,
1999. This is up 10.1 percent over the prior fiscal year's first half. Exports
of parts from the U.S. by Japanese-owned facilities also climbed to $1.729
billion, a 1.3- percent increase over last year's numbers. This increase is
noteworthy because vehicle production in Japan over the same period only
increased 0.1 percent.
    This issue's "Executive Highlights" features Hiroyuki Yoshino, President
and Chief Executive Officer, Honda Motor Corporation. Mr. Yoshino's focus has
been on the environment. The Sierra Club recently awarded Honda the club's
first automotive Award for Excellence in Environmental Engineering. Honda is
the first automaker to offer a gas-electric hybrid, the Insight.
    Mr. Yoshino, who took Honda's top job in 1998, believes this recognition
is proof that the company's strategy of creating a new generation of power
train technologies, working on alternative fuel power train technologies,
particularly fuel cells, and providing customers with fun and exciting
products is on the mark.
    The quarterly newsletter also reports on the industry response to the
growing number of elderly and disabled who want to live more active
lifestyles. The auto manufacturers have increased their line-up and lowered
the prices of specially designed models to accommodate the physically
disabled. These vehicles have become so popular that automakers rarely launch
a new model without a modified version. Toyota calls their cars, Welcabs,
while Nissan calls its line-up Lifecare.
    Japan Auto Trends examines developments in Japan's auto market. The
publication, including all back issues, is available on JAMA's web site
http://www.japanauto.com.
    JAMA, located in Tokyo, has offices in Brussels, Singapore and Washington,
D.C.