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Japan's Economic Hesitation Is Top Story Of AAMA'S 'Global Automotive Trade Report'

20 March 1998

Japan's Economic Hesitation Is Top Story Of AAMA'S 'Global Automotive Trade Report'

    WASHINGTON, March 20 -- As the May Group of Seven (G-7)
summit approaches, Japan faces mounting worldwide pressure to stimulate
domestic demand and deregulate its economy.  Meanwhile, the country's auto
exports rose for the 20th month in a row, while domestic auto sales declined
for the 11th straight month.
    Japan's hesitation on the economy and stalled deregulation initiatives are
the top stories in the March edition of the American Automobile Manufacturers
Association's (AAMA) "Global Automotive Trade Report."
    "Most analysts agree that without new policies to fundamentally change the
direction of Japan's economy, the yen will continue to weaken, while domestic
demand remains stagnant and exports continue to grow," said AAMA President &
CEO Andrew H. Card, Jr. "That is unwise -- and unacceptable."
    The "Global Automotive Trade Report" also notes that AAMA's member
companies added 24 new sales outlets in Japan during the first two months of
1998, and signed up three in late 1997 that previously were unreported.  Since
the 1995 U.S.-Japan Auto Trade Agreement, Chrysler, Ford and General Motors
have added a total of 177 new outlets.  That number is well short of the 400
outlets expected by the end of last year.
    Other features include "Country Focus," which examines a new market access
agreement between the U.S. and Taiwan.  "What Others Are Saying" includes a
comment by U.S. Secretary of Commerce William Daley that "Korea cannot use the
financial crisis as an excuse to delay implementing market access commitments
or as an excuse to raise new barriers."
    To obtain a copy of the "Global Automotive Trade Report," 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 the AAMA's site on the World Wide Web at
http://www.aama.com.

SOURCE  American Automobile Manufacturers Association