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Automakers Say Japan Agreement Must Show Progress

9 October 1997

Automakers Say Japan Agreement Must Show Progress

    WASHINGTON, Oct. 9 -- U.S.-Japan discussions underway in San
Francisco this week are "the most important auto trade talks with Japan since
the 1995 auto trade agreement was negotiated," according to the head of the
U.S. car makers' trade association.  Trade officials from the two governments
have convened to conduct the formal annual review of bilateral automotive
trade required by the agreement.
    American Automobile Manufacturers Association (AAMA) President & CEO
Andrew H. Card, Jr., said: "It is critical that these talks produce real
results to get the 1995 agreement back on track.  We hope Japan will commit to
new tangible efforts to counteract the weak yen's harmful impact on trade."
    Card said the agreement's top policy objective was reducing the overall
bilateral trade imbalance, long dominated by autos and auto parts.  "America's
Car Companies have held up their end of the bargain, offering 24 right-hand-
drive car lines and aggressively seeking new dealer affiliations in Japan,"
said Card.  "But Japan's desire to export its economic problems has
overwhelmed those efforts." Spurred by the weak yen, Japanese vehicle sales in
the United States have surged 23 percent in 1997, while U.S. sales in Japan
are off 16 percent.
    Card said the United States is seeking specific new efforts by the
Japanese, including proactive steps to encourage Japanese dealers to offer
imports.  Only 34 new dealer outlets began offering imports during the
agreement's second year, compared with 103 last year, and less than a handful
are dealers affiliated with Japan's largest automakers.
    "The 1995 agreement provides the mechanism for repairing the problem, but
doing so will require a renewed commitment -- and real action -- from Japan's
government this week," said Card.
    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