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MANAGED TRADE -- ECONOMIC SPRING OF HOPE OR NUCLEAR WINTER

 HIGHLAND PARK, Mich., April 24 /PRNewswire/ -- A more realistic trade policy is needed to get the U.S. economy moving strongly forward and keep it moving into the global economy of the 21st century, Chrysler Corporation President Robert Lutz.
 Speaking at the University of California at Berkeley's Haas School of Business-Alumni Colloquium, Lutz provided his alma mater with his view of how the country's lack of a firm trade policy is hurting domestic industries and benefiting foreign competition in today's global economy.
 Lutz said globalization and international competition has provided some positive lessons in the past few years, but the competition has shown that global trade has a dark side -- not all countries play by the same rules when it comes to international trade.
 "...Everyone professes to be `free traders,'" he said, "but, in reality, most everybody in the world -- with the notable exception of the United States -- practices something that has come to be known as `managed trade.'"
 Managed trade as part of this country's economic strategy in today's global economy is viewed as either an economic `spring of hope' or an economic `nuclear winter'", he said.
 Lutz said what gets forgotten is that managed trade is really already being practiced in the United States -- only it's too often the Japanese who are managing it.
 However, the U.S. auto industry is competing. Lutz said Chrysler has gained more than two points of total market share in the United States, where the Japanese automakers as a whole have lost five and one- half points of share.
 In Europe this year, Chrysler sales are up 30 percent, while the market as a whole is down 17 percent.
 But neither Chrysler nor other foreign automakers have has any success in Japan, he pointed out, because of Japanese practices keeping other automakers out of their market.
 Autos and auto parts have accounted for more than two-thirds of America's staggering $450 billion trade deficit with Japan over the past decade, Lutz reminded the group, adding "our overall deficit cannot come down unless the auto deficit is attacked."
 Some people might consider the auto industry to be too "mature" to enjoy the benefits of managed trade, Lutz said, but pointed out that every industry aspires to be mature and a basic question needs to be addressed: "If we allow today's high unemployment, high-value added, mature industries to become victims of somebody else's managed trades policies, then what does that bode for mature industries of tomorrow?"
 Lutz said he thinks we are beginning to understand the need for a national trade policy because of the jobless recovery and hollowing-out of industry that's taken place over the last decade, including the layoffs in high tech industries like IBM.
 Consumers without jobs are not much benefit to industry, he reminded.
 "I think, in truth, that we are actually experiencing a bit of `nuclear winter' right now. Or maybe you might call it `neutron winter' -- the buildings are still standing, it's just the jobs are gone."
 -0- 4/24/93
 /CONTACT: Lee Sechler of Chrysler Corporation, 313-252-8802/
 (C)


CO: Chrysler Corporation ST: Michigan IN: AUT SU:

TM -- NYSA002 -- 0364 04/24/93 08:30 EDT
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Publication:PR Newswire
Date:Apr 24, 1993
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