WASHINGTON, DC, February 13, 1998--Selling cars to Japanese consumers is becoming a greater challenge among the approximately thirty automobile manufacturers now competing in a declining Japan vehicle market according to [Japan Auto Trends], newsletter of the Japan Automobile Manufacturers Association (JAMA), released today.

The bottom line is that persistent attention to quality, service and consumer taste becomes more crucial to gaining market share, William C. Duncan, General Director, JAMA USA said.

Car sales in 1997 in Japan fell 3.8 percent. Imports, excluding reverse imports (those built in Japanese plants overseas) fell 3.9 percent. Big Three Detroit cars fell 18 percent primarily due to poor consumer acceptance. However, other importers fared better, including Mercedes (+2.3%), VW/Audi (-0.3%), Rover (+0.9%, Citroen/Peugeot (+5.6%) and Fiat (+16.5%).

The largest importers in Japans market, with the exception of Mercedes, have a significant position in Japans highly competitive small/mini car market, which makes up 80% of total car sales. The Big Three have only 1.1% of their sales in this huge market segment, while VW/Audi has 72%, Duncan added.

In a recent J.D. Power study of Japanese vehicle consumers, particularly high marks were given to Mercedes, BMW and VW for luxury and status. Japanese brands rank high for meeting customer needs and service. The study, in reporting top-ranking vehicles, did not indicate where the Big Three cars fell within overall rankings.

This issue of Japan Auto Trends also reports on the Japanese automakers response to the global environmental challenge as well as highlighting details of the new JAMA brochure, The Need for More Environment-Friendly Automotive Technologies.

The newsletter features an article on how the impact of Japans land scarcity and expensive fuel shapes the demand for automobiles. Japan, with a total landmass of 145,850 square miles, is the size of California, with a population of more than 125 million or half that of the US. The need for small, fuel-efficient cars isnt a matter of personal taste but rather one of personal necessity in a country this crowded.

In addition, Japan Auto Trends contains 1997 data for vehicle sales by manufacturers as well as by market segmentssmall/mini and large.

JAMA, headquartered in Tokyo, has offices in Brussels, Singapore and Washington, DC.