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Japan giants agree to raise autoparts import
TOKYO, Jan & Japan s btg five motor manufacturers — Toyota.-Honda. Mazda. Nissan and Mitsubishi — have announced they are raising their procurement targets for US autoparts to around 18 billion dollars within three years, reports AFP.
Toyota, Honda. Mazda and Mitsubishi made thetr announcements today the second day of US President George Bush s visit lo Japan in which he has already discussed the crisis-hit US automobile industry with Prime Minister Kiichl Miyazawa.
Nissan said Tuesday It was setting itself a target of 3.7 billion dollars for fiscal 1994. a 2.5-fold increase from fiscal 1990.
Toyota estimated its US purchase for fiscal 1994 which ends In March 1995 could total 5.28 billion dollar-up front the current target of 4.6 billion dollar set for that year.
Honda said It planned lo purchase around 4.94 billton dollar-worth of US made automotive parls over the same period, a 1,8- fold Increase on 1990.
Mazda set itself a new target of US auto supplies of 2.3 billion dollar for fiscal 1994, an Increase of 1.1 billion dollar over 1990 Mazda also said ft would alm to Increase its imports of Ford model cars In fiscal 1992.
Mitsubishi said its local Chrysler parls purchases in fiscal 1994 would be worth 1.2 billton dollars., a 2.3-fold increase over 1990. The company would also increase US parts imports to 400 million dollar tn 1994 from their 155 million dollar level in 1990.
Wednesday's announcement came within 48 hours of disclosures from the big three US car markers that thetr sales last year had collectively plunged more than 10 per cent. General Motors an nounccd recently ft was shedding 74,000 Jobs and closing 21 plants.
Toyota also announced Wednesday that it was lo open a supplier support center In the United Stales in mid-1992. The company will begin shipping cars lo Japan from Ils Kentucky plant, with total imports expected to reach 20,000 units In fiscal 1994.
The com >any, which is soon Ij start marketing Volkswagen and Audi vehicles In Japan, said ft was ready lo negotiate with General Motors about the possibility of retailing Its vehicles in Japan.
Honda also announced ft was tripling its sales of Chrysler Jeep Cherokee and Wrangler models and doubling imports of its US- made Accord models.
In setting is parls purchases targel for 1994. Honda warned Its US suppliers that they faced lough competition In areas such as quality, cost and meeting specifications, delivery and technology.
Mitsubishi also said it was Increasing the number of US-made vehicles to be sold In Japan- lo 6,000 units tn fiscal 1995. It Imported 2,543 units in 1990.
AP adds: Japan already voluntarily restricts annual car exports to the United Stales at 2.3 million units a year, but actual exports have fallen below that celling s'nee 1987
Instead, Miyazawa reported ts considering a pledge llial the goverrum iil will buy more US cars for its own use.
But Industry officials say US car mekers must begin mar ketlng the right products If they want to take advantage of the concessions won during Bush's visit.
Japanese auto dealers will be happy lo sell American cats, "if and when the products fully meet the needs of the demanding Japanese consumers." Ueno said. "However, quite frankly speaking. I cannot help wondering whether US car manufacturers have made serious efforts In conducting research.... on Jana Inese consumers' preferences."
He said virtually none of the association s 2.000 dealers has been contacted by US automakers, and called on the Btg Three to work harder In Japan.
There's a strong Image that American cars break down easily, like the power window gels stuck or some small part cotiK-s loose, and that they get terrible gas mileage," said Akihiko Yoshida, an editor for Car Sensor magazine. "When you think American cars, you think huge Lincoln."