Joint Announcement on Dealerships by
Mr. Ryutaro Hashimoto, Minister of International Trade and Industry and
Mr. Michael Kantor, United States Trade Representative

28 June 1995

We are pleased to announce that the Government of the United States and the Government of Japan have successfully concluded the Framework consultations on autos and auto parts. We are pleased to note two separate developments in the private sectors of our two countries, that, while not being part of the Framework, should prove to complement the efforts by the two governments.

The first such development is the announcement by the American Automobile Manufacturers' Association of June 28, in which its members expressed their continued determination to increase their efforts to further expand their presence in the Japanese market. To this end, they expect, for example, to introduce a series of new right-hand drive vehicles to the Japanese market, expand their sales and distributions networks in Japan, and increase advertising and marketing expenditures.

The second development is the announcement by the Japan Automobile Dealers' Association of June 28 for enhancing opportunities for foreign vehicle manufacturers' access to dealer outlets in Japan. According to the announcement, if a particular foreign vehicle manufacturer chooses to approach JADA with concrete plans for introduction in the Japanese market of specific new models, together with the planned timing of their introduction, JADA will conduct a survey of its members for the purpose of identifying dealers that have intentions or interest in selling foreign motor vehicles. A list of interested dealers and their respective contact points, as well as major points of the result of the survey will be communicated back to the company that made the request. Foreign manufacturers are, of course, free to conduct their own market research, and are not bound to use this initiative. Foreign manufacturers who request this survey and Japanese dealers who respond affirmatively to the survey are under no obligation to enter into franchise agreements with each other.

Joint Announcement on Dealerships by
Mr. Ryutaro Hashimoto, Minister of International Trade and Industry and
Mr. Michael Kantor, United States Trade Representative

28 June 1995

1. The U.S. Government expects that the combination of implementing the Measures under the automotive Framework and the intensified efforts of the U.S. vehicle manufacturers will lead to a significant increase in the sales opportunities for U.S. vehicle manufacturers in Japan. Specifically, the U.S. Government envisions an increase of direct franchise agreements between U.S. vehicle manufacturers and Japanese dealers that will result in approximately 200 new sales outlets by the end of 1996 and increasing to a total of approximately 1,000 new sales outlets by the end of 2000.
2. Minister Hashimoto said that the Government of Japan has had no involvement in this forecast because it is beyond the scope and responsibility of government. Minister Hashimoto said that these forecasts are solely those of the Government of the U.S.