Washington, DC—September 30, 2002—Japanese auto manufacturers are becoming the first in the world to offer commercial fuel cell vehicles, according to Japan Auto Trends, the newsletter of the Japan Automobile Manufacturers Association (JAMA) released today.

For example, Toyota and Honda will sell or lease fuel cell vehicles in the U.S. and Japan. Toyota plans to lease a sport utility vehicle from around the end of the year. In July 2002, the Honda FCX became the first fuel cell vehicle in the world to receive government certification from the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB). Honda will start marketing the FCX in both Japan and the U.S. at the end of 2002.

The Honda FCX will be equipped with hydrogen tanks large enough to power it for 220 miles on a single fill. The FCX top speed is 90 miles per hour. Toyota's U.S. model will be based on the Highlander SUV and have a top speed of 90 miles per hour. Nissan will enter the commercial vehicle fuel cell market in fiscal year 2003. In addition, GM Japan will road test its HydroGen3 Opel Zafira fuel cell electric vehicle in Japan.

Japan's Ministry of Economy, Trade and Industry (METI) is kicking off a 3-year "Japan Hydrogen Fuel Cell Demonstration Project," showing that hydrogen is safe, effective and environmentally friendly. A second objective is demonstrating how to operate the infrastructure needed to distribute the fuel.

"In addition to the limited system for supplying hydrogen, we still lack the test and other data to accommodate fuel cell cars in a variety of environments," Toyota Vice President Akihiko Saito said.

Japan Auto Trends also reviews the global changes taking place in auto parts purchases by Japanese auto manufacturers. "It makes more sense to focus on how auto parts contribute to improvements in productivity, quality and consumer satisfaction rather than on the dollar value of their nationality," said William C. Duncan, General Director, JAMA USA.

Since 1986, JAMA members' purchases of U.S. auto parts expanded steadily from $2.5 billion to about $36 billion last year. However, JAMA companies in the U.S. also manufacture millions of engines, transmissions other value-added parts, rather than importing these parts from Japan.

New alliances are also changing the dynamic of auto parts purchases. For example, GM, Ford, DaimlerChrysler and Renault have equity and management participation in seven of the nine Japanese car manufacturers. GM Japan, a new JAMA member, recently announced it would form a joint Japan-based purchasing team to seek auto parts worldwide for GM and its three Japanese partners—Isuzu, Subaru and Suzuki.

The newsletter's quarterly "Executive Highlights" features Takaya Yamada, president of Daihatsu Motor Co., Ltd. Daihatsu currently holds a 27.6 percent share of the growing small and mini car market in Japan.

"The outlook is favorable for smaller cars around the world due to rising concerns about the environment and to increasing car ownership in emerging countries," Mr. Yamada said.

Other stories featured in today's newsletter include:

• Tokyo auto safety conference focuses on new technologies;
• Major auto manufacturers strengthen their international alliances;
• Nagoya: The City of Shoguns, Castles and Toyotas.

Japan Auto Trends examines developments in Japan's auto markets. This publication and all back issues are available on the JAMA website, www.jama.org. JAMA, located in Tokyo has offices in Brussels, Singapore and Washington, D.C.