Washington, DC ‑ March 26, 2001 ‑ The Japanese auto industry is expressing cautious optimism for auto sales growth in Japan this year, according to [Japan Auto Trends] the newsletter of the Japan Automobile Manufacturers Association (JAMA). Within Japan, auto industry forecasts predict a 2.2% growth in car and truck sales. Last year car and truck sales grew about 2%.

This industry optimism stems in part from signs that Japanese consumers are ready to begin buying again. "The past year saw year-on-year growth in domestic sales for the first time in four years," said Hiroshi Okuda, Chairman of JAMA and the Toyota Motor Corporation.

Pointing to the fact that non-Japanese auto companies have recently purchased equity in many of the Japanese companies, William C. Duncan, General Director of JAMA's Washington office, said "The fortunes of GM, Ford, DaimlerChrysler, and Renault are now tied to Japan's market as Japanese companies are tied to the U.S. market."

Duncan added that, "No longer do companies rise or fall in separate markets independent of each other. The Japanese and U.S. auto industries are now in the same sea and in many cases in the same boat pulling the same oars. These companies are more likely to rise and fall together!"

The newsletter also singles out automakers' investments in new technology and capital improvements as well as cutting procurement and manufacturing costs. "We should take advantage of these trends to ensure that a full-fledged recovery gets underway, " Hiroshi Okuda said.

Another article reviews Japanese auto manufacturers' purchases of U.S.-made auto parts. A record $17.3 billion of parts have already been purchased in the first half of the current fiscal year (4/2000-3/2001).

Japan Auto Trends also reports on Covisint, the auto industry's new business-to-business (B2B) internet online parts procurement service. Covisint permits automakers and suppliers to display products, quantities and delivery dates on the internet. This exchange has the potential to steadily reduce costs because it gives automakers the ability to buy parts and materials on a global basis.

The newsletter's quarterly "Executive Highlights" features Yoshinori Ida, new President and Chief Operating Officer of Isuzu Motors Ltd. Ida wants to expand Isuzu's diesel engine business and add a new vehicle model in the U.S. market. He also plans to slash procurement costs 30% over the next two years.

"We need to speed things up here. We have no time to waste. Once decided, we must act quickly, " Ida told Japan Auto Trends.

Other stories featured in today's newsletter include:

• Commercial vehicle makers debut Eco-friendly technologies and models at the Tokyo motor show;
• Japan eases speed limits for motorcycles;
• Where nationality has no meaning: world's automakers and parts suppliers deepen and expand corporate alliances.