Printer Friendly

HEALTHY GLOBAL ECONOMY DEPENDS ON ADMINISTRATION'S KEY TRADE DECISIONS, ASSERTS TOYOTA EXECUTIVE

 DETROIT, March 16 /PRNewswire/ -- Decisions that the Clinton administration makes on key trade issues represent America's last hope for a new beginning toward a healthy global economy in the 21st Century, a Toyota executive said here today.
 Speaking before the Automotive Press Association, J. Davis Illingworth, group vice president of sales and marketing for Toyota Motor Sales, U.S.A. Inc., said that protectionist actions encouraged by the Big Three are bad for the industry, the nation and the consumer.
 "As an American manager working for a Japanese company, it is my fervent hope that these crucial trade decisions be based on rationalism, not nationalism," Illingworth said.
 The Big Three's push for a 25 percent tariff on minivans and sport-utility vehicles hurts consumers and competition, Illingworth said, because history demonstrates that punitive trade measures don't work:
 -- The Embargo Act of 1807 and the Nonintercourse Act of 1809 eventually led to the War of 1812.
 -- The Smoot-Hawley Tariff Act of 1930 raised customs duties by an average of 30 percent, prolonged the Great Depression and led to World War II.
 -- The 1963 "Chicken Tax" to punish Europe for barriers to U.S. chickens failed to win entry for U.S. chickens into Europe. But it punished American consumers with a 25 percent tariff on imported trucks even from Japan, the largest foreign market for U.S. chickens.
 "When the ability of the American consumer to buy goods from other countries is hindered, it will certainly result in hindering the ability of consumers in other countries from buying American goods," Illingworth said. "This will be disastrous."
 Illingworth quoted the belief of Thomas Jefferson in free trade: "Instead of hindering commerce under piles of regulating laws, duties and prohibitions, it should be relieved of all its shackles in all parts of the world so that every country be employed in producing that which Nature has best fitted it to produce and each nation be free to exchange with others mutual surpluses for mutual wants. Then, the greatest mass possible would be produced of those things which contribute to human life and human happiness; the number of mankind would be increased and our condition bettered."
 Noting that Jefferson is the current president's middle name, Illingworth said, "My hope and prayer is that President Clinton listens to his namesake."
 On a per-capita basis, Illingworth said, the United States actually runs a trade surplus with Japan, not a deficit. In 1991 the average Japanese person consumed $389 of American goods, more than the average American's $363 of Japanese goods.
 "Think about that for just a minute," Illingworth said. "It means that 124 million Japanese living on a 146,000-square-mile chain of islands about the size of Montana did more for U.S.-Japan trade relations than 249 million Americans spread out in a country comprised of 3.6 million square miles."
 A "closed" Japanese market has in fact fueled America's current export boom. U.S. exports in 1992 to Japan were $48 billion, up 29 percent since 1988.
 Services have risen from 20 percent of total U.S. exports to 30 percent in the last 10 years, he said. As a result, a $69 billion trade surplus in services offset two-thirds of last year's $101.8 billion merchandise trade deficit, bringing the actual deficit to $32.7 billion.
 "The Big Three claim that they and the U.A.W. alone are the American auto industry," Illingworth said. "This is not true. Toyota is part of the American auto industry."
 -- Toyota has invested more than $5 billion in the United States since 1958 and directly employs nearly 16,000 Americans with 1,400 total dealerships employing 68,000.
 -- U.S.-made parts and materials purchases more than tripled from $1.1 billion in 1988 to $4 billion in 1992, and will rise to more than $5 billion by 1994.
 -- Forty percent of all Toyotas sold here are North American- built, compared to zero six years ago.
 -- By the mid-'90s Toyota's seven North American factories will employ more than 11,000 people, with production of 660,000 cars and trucks, 5,000 forklifts, 500,000 engines, in addition to other components including truck beds, catalytic converters, engine parts and aluminum wheels.
 Toyota's U.S. investment reaches beyond the actual locations to more than 390 U.S. auto parts and material suppliers in 32 states, Illingworth said. The $2 billion Kentucky plant alone, which builds 75 percent of all Camry sedans and 100 percent of Camry wagons sold in the United States, buys from 174 suppliers. The plant directly and indirectly generates 22,000 jobs in Kentucky and another 70,000 nationwide, according to a recent University of Kentucky study.
 -0- 3/16/93
 /CONTACT: Joe Tetherow, 310-618-4727, or Jim Fewel, 310-618-4649, both of Toyota/


CO: Toyota Motor Sales U.S.A. Inc. ST: California IN: AUT SU:

EH-JB -- LA010 -- 6609 03/16/93 14:00 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 16, 1993
Words:818
Previous Article:MRS. FIELDS AND RED CROSS OFFER UP A 'TASTY' PROPOSITION
Next Article:MICHAEL HILL PROMOTED TO VICE PRESIDENT, PRODUCTION MANAGEMENT, FOR THE MOTION PICTURE GROUP OF PARAMOUNT PICTURES
Topics:


Related Articles
TOYOTA CALLS FOR MORE COOPERATION IN AUTO INDUSTRY
TOYOTA EXECUTIVE DISCUSSES CHANGING AUTO INDUSTRY
NUMMI MAY OPERATE INDEFINITELY, FTC RULES
TOYOTA EXECUTIVE BLASTS PROTECTIONISM, CALLS FOR COMPETITION AND CHANGE
CONSTRUCTION BEGINS IN THE UNITED STATES ON LARGEST TOYOTA PARTS FACILITY WORLDWIDE
BUSINESS PRACTICES, NOT POLITICS SHOULD DETERMINE PARTS PURCHASES, ACCORDING TO TOYOTA EXECUTIVE
USTR HEARING TESTIMONY - TOYOTA SAYS SANCTIONS WILL HURT AMERICA, NOT JAPAN
STATEMENT OF CHRYSLER CORPORATION CHAIRMAN AND CEO ROBERT J. EATON ON TODAY'S ANNUAL MEETING OF THE JOINT AUTOMOTIVE SUPPLIER GOVERNMENTAL ACTION...
LEAD: All top 5 Japan automakers see domestic sales drop in April-Sept.
2ND LD: Toyota group posts 1st quarterly sales fall in 7 yrs.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters