WASHINGTON, DC, September 10, 1998--Japan's automobile industry is looking beyond its immediate economic situation by facing the global environmental challenge. New innovative vehicles are entering Japan's market including electric, natural gas and hybrid combinations, according to the Japan Automobile Manufacturers Association (JAMA) newsletter, [Japan Auto Trends], released today.

A recent survey showed 72 percent of Japanese drivers are willing to pay more for environmentally friendly cars. While, 88 percent said they wanted to buy low-polluting cars equipped with clean exhaust systems, William C. Duncan, General Director, JAMA USA said.

He added that although Japan's economy is in recession, it will bounce back strong, vibrant and at the forefront of technological development. Increasingly, environmental challenges will shape the market and environmental technologies will lead the way.

The newsletter includes descriptions and photographs of five new car models and one truck. These vehicles range from solar powered to gas and electric combinations.

Japan Auto Trends also reviews the greening of Japan's auto industry both in automobile recycling and in advertising messages. The automakers, in collaboration with its industry partners, are recycling 75 percent of scrapped vehicles by weight. The goal is to make the end-of-life vehicle 95 percent recyclable by 2015 for the industry as a whole.

The newsletter also highlights the record 1997 fiscal year purchases of $24.95 billion in American-made auto parts by Japan's auto manufacturers. This represents a 9.8 percent increase over the $22.74 billion bought during the preceding fiscal year. This is the twelfth consecutive year of record American-made auto parts purchases. Japan's fiscal year begins April 1 and ends March 31. In other news, Takao Suzuki was appointed JAMA's new Vice Chairman and Executive Managing Director. Mr. Suzuki formerly served in Japans Ministry of International Trade. Immediately prior to joining JAMA, he served as Senior Executive Director of the Japan Finance Corporation for Small Business.

Japan Auto Trends' latest data insert covers Japan's passenger car market from January through June 1998. Small and mini car sales continue to dominate the economically hit market. However, overall passenger car sales were down 13.5 percent, while import car sales fell a sharp 26.5 percent.

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