Study sees major California jobs stake in Japan car fracas: more than 100,000 jobs may hinge on tariffs.

More than 100,000 jobs in California dependent on or related to Japanese automobiles could be threatened if the Clinton administration goes ahead with punitive tariffs on certain imported luxury models, according to a study released last week by the Los Angeles County Economic Development Corp.

"Should the tariffs be imposed, they would particularly affect the South Bay and Orange County where several Japanese automaker subsidiaries have headquarters and design studios," said Jack Kyser, the EDC's chief economist, during a press conference last week. He also noted that the advertising and entertainment industries - which coordinate automobile promotions and shoot commercials - would be indirectly affected.

In Los Angeles County, the Acura division of Torrance-based American Honda Motor Co.; the Infiniti division of Carson-based Nissan North America and the Lexus division of Toyota Motor Sales U.S.A. Inc. would be directly affected, according to Kyser. Most of their models have been targeted for tariffs.

Infiniti and Lexus each have about 300 employees in the United States, according to company officials. Acura officials could not immediately provide numbers.

The May 31 press conference, extensively covered by U.S. and Japanese media, was held jointly by the EDC and the Alliance to Save California Jobs, a loose-knit group of 75 companies - including Toyota, Nissan and Honda - opposed to the tariffs.

"If these tariffs are imposed, they would be felt far more here than in Japan," said Fred Miller, chief spokesman for the coalition and owner of several car dealerships in the Los Angeles area. "We're taking no sides in this; we just want it resolved."

Washington has threatened to impose 100 percent tariffs on luxury models manufactured by four Japanese automakers if Japan does not move to loosen its market for U.S.-built parts and vehicles. The tariffs are to go into effect June 28 and would retroactively affect Japanese vehicles imported May 20 and after.

The American International Automobile Dealers Association, a Washington-based trade group, has been lobbying Capitol Hill the past couple of weeks to oppose the tariffs. However, the Republican-controlled Congress has stated it is in agreement with the Clinton administration on the issue.

Miller said the AIADA plans to visit politicians in Japan later this month to discuss the issues.

Altogether, there are 106,100 jobs related to imported Japanese automobiles in California, according to Kyser's study. Some 13,656 are employed by the automakers themselves and 28,643 are employed by automobile dealerships.

"Multipliers" - jobs indirectly supported by these positions, such as parts suppliers - add another 63,800 to the total.

However, neither Kyser nor the alliance could calculate how many jobs actually would be directly affected if the tariffs did go into effect.

"We don't have that information," Miller said.

Only 6% targeted

Infiniti, Lexus and Acura sold 166,801 automobiles last year in the U.S. in model categories that would be hit by the tariff - only 6.4 percent of the 2.65 million vehicles that were sold by Japanese automakers in this country.

Two strong sellers, the Acura Integra and Infiniti G20, are not targeted, and they accounted for a combined 84,204 units sold in 1994.

Numbers aside, Miller raised a concern that exists among many dealers who entered the hot Japanese luxury auto market in the 1980s: cross-collateralization.

"A lot of dealership owners leveraged their existing dealerships to get their showrooms," Miller said.

Lexus, Infiniti and Acura dealerships are often "stand-alone" showrooms that cost $3 million or more to launch.

Therefore, according to Miller, other dealerships would be placed in financial peril if tariffs put luxury showrooms out of business.

"It's a major problem," said Miller, who in 1989 spent $6 million to build an elaborate Infiniti showroom on Van Nuys Boulevard in Sherman Oaks.