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Japanese Auto Industry Forecast to Bounce Back, Says just-auto.com

21 July 2000

Japanese Auto Industry Forecast to Bounce Back, Says just-auto.com

    LONDON - The Japanese auto industry has been ravaged by the recession that 
has hit Asia in recent years.  Total new vehicle demand in Japan declined 24% 
over the course of the 1990s, from 7.8 million units in 1990 to just 5.9 million 
in 1999.  Japanese auto companies have seen domestic and export sales crash, 
with dire consequences for their financial status.  But research carried on 
just-auto.com suggests that the next few years will see a recovery to Japanese 
domestic vehicle sales and overall production volumes.

    Japan's annual demand for cars and trucks is expected to be 17% higher in
2004 than in 1999 but still fail to eclipse its 1990 peak, according to the
report issued by the global forecasting firm Standard & Poor's DRI.  The
report, available at http://www.just-auto.com/features_detail.asp?art=233 also
predicts an increase in motor vehicle production by Japanese manufacturers
over the next five years, though mostly in Japanese-owned plants in Asia,
North America and Europe.

    just-auto.com's Managing Editor, David Leggett, agreed with the Standard
and Poor's DRI report's findings and commented:  "The Japanese auto industry
has been under and still is under extreme pressure.  The recovery to domestic
demand is taking time and still looks fragile, given the perilous state of the
Japanese economy.  Further consolidation surely lies ahead.  Nevertheless, it
is clear that the domestic picture will be improving and the Japanese makers
will be making the most of their overseas facilities to grow overall
production."

    just-auto.com is the premier online portal for automotive industry
professionals worldwide.  Targeted specifically at industry and business
professionals the site provides a single point of reference for independent
automotive industry information.