Washington, D.C.–July 29, 2004–While the price of gasoline in the U.S. has soared 40 percent since the beginning of the year, gasoline prices in Japan have remained relatively stable, increasing only 5 percent, according to the latest issue of Japan Auto Trends, the newsletter of the Japan Automobile Manufacturers Association (JAMA) released today.

The relatively stable prices are due to yen valuation and oil deregulation in Japan. Even so, Japanese motorists pay about $3.79 per gallon of gasoline, significantly more than Americans do. As a result, the high cost of fuel, coupled with a keen environmental consciousness among Japanese consumers, has created a rapidly developing market for fuel-efficient transportation.

"The latest spike in gas prices makes it clear that along with the welcome benefits of global economic growth come pressure on energy resources and a greater impact of their use on the environment" said William C. Duncan, General Director, JAMA USA. "JAMA member companies are addressing this challenge by further advancing environmentally friendly technologies as well as vehicle safety and intelligent transport systems, among other initiatives," he added.

Japan Auto Trends also reported another advance in the effort to develop a commercially viable fuel cell. Honda began testing a vehicle equipped with a cold-resistant fuel cell stack, which the company plans to install in its Honda FCX next year (2005). The prototype vehicle has demonstrated that it can operate in temperatures as low as -4 degrees Fahrenheit.

In the quarterly Executive Highlights interview JAMA's new leader, Nissan Co-Chairman Itaru Koeda, said that the Japanese industry must continue its efforts to further improve the fuel efficiency and environmental friendliness of its products. "We must move forward with new ways to contribute to the reduction of carbon dioxide levels, not only in the automobile industry, but in all industries," he said. JAMA members elected Koeda as JAMA Chairman in an election May 20. He succeeds Honda Chairman Yoshihide Munekuni.

The newsletter's Snapshots feature examines motorcycle racing in Japan, particularly the Coca-Cola 8-hour Endurance Championship held each July at the Suzuka racetrack. The race is considered by many to be the most prestigious motorcycle race in the world.

The newsletter also announced that starting with the Fall 2004 issue, Japan Auto Trends would publish electronically. A link to a printable publication will be provided to readers.

Other stories in the newsletter include:

• A Brave New World: Japanese Automakers Apply ITS Technologies in New Models
• Japanese Automakers Invest in New Paint Techniques to Reduce Pollution
• Marketing to Niche Customers: Japanese Automakers Open their Doors and Rethink Engineering to Entice Customer

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