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AAMA Japan Report Highlights U.S. Government's Second Annual Review Of Auto Agreement

10 November 1997

AAMA Japan Report Highlights U.S. Government's Second Annual Review Of Auto Agreement

    WASHINGTON, Nov. 10 -- The Second Annual Review of the 1995
U.S.-Japan Auto Agreement, held in San Francisco October 7-9, produced no
progress toward deregulation or improved access to Japan's auto market,
according to the October edition of the AAMA Japan Report. U.S. government
officials had hoped that the meeting with their Japanese counterparts would
result in new actions on deregulation and access to the Japanese market, said
Marjory Searing, Acting U.S. and Foreign Commercial Service Director-General.
    "Japan, however, was only prepared to discuss the past and not what
actions are needed to ensure continued progress in the future," Seating said.
    The U.S. government's disappointment at the outcome of the Second Annual
Review was echoed by Andrew H. Card, Jr., President & CEO of the American
Automobile Manufacturers Association.  "The good news is that the U.S.
government, supported by the European Union, Canada, and Australia delivered a
strong and unmistakable message to Japan.  That message is that the Japanese
government must take concrete, proactive steps to deregulate and open its
automotive market," Card said.
    Card said that the excessively weak yen makes it more difficult for
American vehicle and parts manufacturers to sell their products in Japan.
"The excessively weak yen is a problem on both sides of the Pacific," Card
noted.
    Other highlights of the October AAMA Japan Report include:
    -- Sales in Japan by Chrysler, Ford, and General Motors declined 15.4
       percent in 1997.
    -- Importers' share of the Japanese auto market increased slightly to 5.5
       percent.
    -- AAMA member companies added five new dealer outlets in Japan during
       September.

    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