Dealer expectations differ over effects of tariff.

Most expect automakers to pick up costs, for a time

While the Clinton administration's June 28 deadline for imposing 100 percent punitive tariffs on Japanese luxury cars loomed, area dealers did not show - at least on the surface - major concern last week.

"We're doing business as usual, and we can still trade for the cars we need," said Susan Kaplan, general manager of Infiniti Valencia, referring to dealers' common practice of swapping cars among themselves for customers looking for particular colors or equipment.

Kaplan added that her inventory stands near the 60-day total considered ideal for the industry, and she continues to receive shipments from Carson-based Nissan North America, Infiniti's parent company.

"We have no contingencies planned," Kaplan said.

But Doug Dohring, chairman and CEO of The Dohring Co., a Glendale-based industry consultant, said Kaplan's attitude is not shared by dealers in other parts of the country.

"We've talked to several who are concerned," he said. "They should be taking measures to beef up areas like their fixed operations or pre-owned car sales, so they can at least be prepared."

Kaplan, like some other retailers contacted last week, believes the Clinton administration will back off on the tariffs after continued negotiations with Japan over relaxing its markets to admit more U.S.-made cars and parts. President Clinton is attending a Group of Seven Industrialized Nations summit in Halifax, Nova Scotia, that began last week and negotiations with Japanese officials over the tariff issue are expected to take place.

Concern raised

"Some of it might be wishful thinking that they're not really concerned," said Jesse Snyder, president of Snyder Research, a consulting firm based in Simi Valley. "They ought to be concerned, but I tend to agree with them. I think this will be settled in short order."

Snyder noted that Japanese automakers, while publicly supporting their government, are privately lobbying to get it to ease up on restrictions. "They have a lot to lose if tariffs are imposed," he said.

Failing that, most dealers are satisfied the automakers themselves will absorb the tariffs, which would be retroactively imposed on all shipments that arrived in the United States after May 19.

"At this point in time, the word we are getting from (American Honda) is that if the tariffs do go through, they would absorb the additional cost," said Bill McLendon, general manager of Keyes Acura in Van Nuys.

McLendon also noted that a large part of his lot's sales are comprised of the Acura Integra, a lower-priced model that will not be affected by the tariff. Another new model, the TL sedan, would also escape the tariff if it is equipped with a five-cylinder, 2.5 liter, engine, rather than the larger 3.2-liter engine. Sales for a third model that would be tariffed - the Acura Legend - have been sluggish most of the year, McLendon noted.

Some will absorb hit

Indeed, two Torrance-based U.S. sales divisions of Japanese automakers - Lexus, the luxury division of Toyota Motor Sales U.S.A. Inc., and Acura, the luxury division of American Honda Motor Co. - confirmed last week they will absorb tariffs, but only for vehicles imported between May 20 and June 28. None has decided whether to absorb the tariffs thereafter.

Infiniti is still mulling the issue. "We're in a wait-and-see mode," said Debra Sanchez Fair, Nissan North America's manager of industry issues.

Some shifts in overseas production have occurred in preparation for the tariffs, Sanchez Fair and other officials said, but they are mostly minor changes.

May sales for most of the models targeted for tariffs did not fluctuate in a way to indicate buyers are seeking pre-tariff deals. The one exception was the Lexus' most expensive model, the LS 400 sedan; sales were up 77.3 percent last month from May 1994.

"That's the one they're buying," said Howard Tenenbaum, general manager of Keyes Lexus in Van Nuys. "From the 15th of May to the end of the month, it was a like a weekend every day. We normally sell 75 to 80 new cars during that time, but we moved 130 instead, most of them LS 400s."

Tenenbaum added sales have cooled off since June 1 and are near normal levels. His inventory is slightly below 60 days.