Washington, D. C. — October 3, 2001 — Automakers worldwide are joining forces to develop the perfect fuel cell ultimately leading to an eco-friendly technology. Most believe this may well replace the internal combustion engine, according to Japan Auto Trends, the newsletter of the Japan Automobile Manufacturers Association (JAMA).

"Success, indeed survival, in tomorrow's automobile industry will depend on how individual auto companies meet rapidly growing worldwide concerns over environmental quality and scarce energy resources," said William Duncan, General Director, JAMA USA.

In Japan, for example, Honda Motor Co. has begun testing its FCX-V3 fuel-cell model on public roads. Nissan Motor Co. and Renault recently announced they would jointly develop cars with gasoline-powered fuel cells. And Mazda Motor Corp. and DaimlerChrylser have teamed up with Nippon Mitsubishi Oil in developing a methanol strategy and road-testing vehicles that use liquid methanol to power their fuel cells.

According to the newsletter, the Japanese government wants to increase the number of low-emission vehicles on the road by 2010. Currently, 630,000 models are in use, but government officials want to push that number beyond ten million in ten years.

Also in this issue, Dr. Duncan writes that because of the increase in the number of international corporate auto alliances and the expanding multi-national nature of vehicle sourcing, it is no longer meaningful to report import vehicle sales in Japan on a country basis. The Japan Automobile Importers Association (JAIA) gathers this data, which will now be reported by manufacturer.

"The erosion of meaningful auto sales statistics by country is more than symbolic. It further validates that internationalization is already well advanced." Duncan added.

The newsletter's quarterly "Executive Highlights" features Rolf Eckrodt, Mitsubishi Motors Vice President and Chief Operating Officer. Eckrodt is focusing on restoring the company's profitability and image. "I am totally confident about the success of this turnaround," he told Japan Auto Trends. Eckrodt has brought about new ways of thinking with a focus on the customer by combining R&D with marketing. DaimlerChrysler owns a 37.3 percent equity stake in Mitsubishi.

Other stories featured in today's newsletter include:

• The 35th Tokyo Motor Show for passenger cars and motorcycles begins October 26th with the focus on automobile technology and innovation;
• General Motors' alliances with Fuji Heavy Industries and Suzuki Motor Corporation are resulting in new vehicles to be marketed in Japan;
• Japan's moves to decrease greenhouse gas emissions to meet or exceed the Kyoto Protocol;
• Broad review of technology developments launched by Japanese automakers.

Japan Auto Trends examines developments in Japan's auto markets. The publication, including all back issues, is available on JAMA's web site www.jama.org.