Pacific Stars And Stripes Newspaper Archives Feb 4 1983, Page 9

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Pacific Stars And Stripes (Newspaper) - February 4, 1983, Tokyo, JapanFriday february 4, 1983 Pacific stars and stripes Auto 9 Tokyo up officials i Japan s automobile Industry Are painting a gloomy business Outlook because of reduced sales. One Trade official has said that the slump will cause the japanese to end voluntary curbs on exports to the United states in 1984. Japan s Auto exports in 1982 fell 7.6per cent from the preceding year to total 5,590,473 units data release last week by the Japan automobile manufacturers association said. First decline it was the first year to Yea decline since Japan s Auto Industry now the world s largest began exporting in the mid-1950s. Our Industry now remains under state of government controls an association spokesman said refer ring to demands from the United states and the european economic Community that Japan curb Auto Japan will not extend its curb on automobile exports to the unite states beyond april 1984, an official of the International Trade an Industry ministry has said. The official who declined to be identified said the. Accord struck Between . And japanese official sin 1981 ends in March 1984. Official Japan will end limit on exports to . In this fiscal year beginning april 1we will continue to ship 1.68 million cars to the United states Ashe did in the past two years he said adding but not beyond april next Japan agreed in 1981 to keep the1.68 million car ceiling for the first two years and extend it a third Yea beginning april 1,1983, if necessary. Trade surplus Japan ran up a record Trade surplus of an estimated $20 billion last year with the United states an about $10.3 billion with the 10-nation common this situation coupled with saturation of Domestic demand we face a very severe business Environ ment the manufacturers association spokesman overtook the United states As the world s leading car producing nation two years ago with production totalling 10,737,034 units in 1982against America s estimated output of 6,987,222, association data exports will be Dis cussed by japanese officials an William Brock the . Trade representative who will be in Tokyo this month. Recession blamed a spokesman for Toyota motorco., Japan s no. 1 automaker cited global recession and Trade friction As reasons for Japan s Export expect this situation to continue for some time the spokes Man said. Exports accounted for 48 percent of Japan s total production Down from 52.1 percent in 1981.ihdustry sources consider overseas investment important. Negotiation Between Toyota and general motors Are under Way on joint production of Toyota vehicles. Toyota is the Only major japanese automaker with no factory in the United states. Officials of Bot Toyota and pm Are reported to want an agreement this Spring. Domestic Content Bills . Legislators have proposed Billston limit imports and Domestic Content Bills aimed at forcing Japan to manufacture parts in the United states. So far none of the proposals have borne fruit. Japanese car sales overseas in1982 were 2,297,022 units in North America Down 10 percent from1981 1,122,975 units in Europe Down 5.5 percent dec alone 777,096units, Down from 851,536 in 1981 Middle East 710,084 units up 44.7percent. Exports to Southeast Asia latin America and Africa marked two digit percent decreases. Imports from Page 8 Mitsubishi thereby becomes Japan s sixth exporter of cars to America. The last time this country had As Many was Over 30 years ago when Packard and Studebaker were still around. From Germany meanwhile Willcome the new Down sized Mer cedes Benz 220, while Bow will bring out a new Model the 533i. As an example of How top of the line luxury imports have defied the automotive recession sales of Bow s expensive High performance cars have More than doubled since 1976, from 26,000 a year to More than52,000 last year. But perhaps because his office sin Detroit these aggressive Automo Tive innovations and inroads from abroad do not cause Jouppi the Dean of automotive analysts too much concern. His View is that in the Long run Detroit will regain its strength while the Competition will falter. Chrysler Lebaron Success for Iacocca once Detroit has brought out its belonging to the foreign Man fac percent and what you do with that new product i think it will shake out tured imports and around 70 percent is you fight Over to about 20 percent of the Market Domestic he said. That leaves 10 several things we contribute to this development Jouppi said. The japanese Price advantage a combination of lower wages More efficient manufacturing processes and in the View of Many a undervalued yen will Correct them selves. Japanese wages will continue to Rise while wage moderation in the United states if not Canada is already an accepted goal. Production techniques including robot Assembly Are being upgraded apace by Detroit and the yen is strength ening reducing the cheapness of imports paid for in dollars. Jouppi and Power both agree moreover that 10 years from now Japan will be experiencing some of the same problems american car makers Are including the necessity to move production off the Island to Korea Singapore and Taiwan. We re starting to do it the japanese Way we re starting to get some better relations Between management and labor Jouppi concluded. But my fear As an analysis that we Don t suddenly make the japanese the Model for the nex Century. They Are the Model of what they had to do from an Island base but they certainly Are not the perfect Model for running the United stat Sand North America in the year 2000 Ford thunderbird european design and

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