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Automakers Urge Repeal of Japan's Consumption Tax Hike

1 June 1998

Automakers Urge Repeal of Japan's Consumption Tax Hike

    WASHINGTON, June 1 -- The following statement was issued by
the American Automobile Manufacturers Association (AAMA) in reaction to the
yen's continuing decline and shrinking domestic vehicle sales in Japan.
    "The continuing free fall of the yen is a resounding message from world
financial markets on the Japanese government's failing record of economic
reform.  The currency's continued slide also has consequences for American
workers.  Despite the strength of our economy, the yen is limiting U.S. export
opportunities.
    "With Japan's domestic vehicle sales down for a record-tying 14th
consecutive month, the Japanese government should repeal the consumption tax
increase it adopted a year ago.  The tax hike has only made Japan's stagnant
economy worse.  Yet, as vehicle sales fizzle at home, Japan continues to churn
out cars and trucks for export to open markets worldwide.
    "The U.S. and other G-8 member nations must insist that Japan take
immediate action to deregulate and stimulate domestic demand-led growth -- in
part by repealing the consumption tax increase -- before an already seriously
ill economy takes another turn for the worse."
    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.