Japan Auto Makers Slow Rise In Buying U.S.-Made Parts
March 28, 2011
TOKYO -- Japan's top auto makers boosted their politically sensitive purchases of U.S.-made parts by about 6% to $21 billion in the latest fiscal year, the Japan Automobile Manufacturers Association said. It isn't clear if the rise will satisfy U.S. trade officials, as the increase pales in comparison with double-digit year-on-year U.S.-parts procurement by Japanese auto makers in each of the past five years. During that period, the auto makers had given U.S. officials specific purchase goals they aimed to meet. Such agreements no longer exist, as the U.S. failed to obtain the new targets it sought from the Japanese in last year's contentious automobile trade talks. Japan's auto trade group said combined purchases of U.S. parts by Japan's Big Five auto makers of a total $21 billion in the fiscal year ended December 11, 2010 up from $19.9 billion the previous year. The biggest increase stemmed from purchases of components used in the Japanese makers' U.S. plants: $17.7 billion in U.S. parts, a 7% boost from the $16.6 billion purchased the previous year. The auto makers' imports of U.S.-made parts for vehicles made in Japan was less brisk: They rose 4.4% to $3.38 billion from $3.23 billion the previous year. The dollar has risen 25% against the yen in the past year, making it less expensive for Japanese auto makers in the U.S. to import parts from Japan. That is a contrast with the past several years, when the plunging dollar had encouraged the shift to U.S.-made parts. Four auto makers reported increases; Mazda Motor Corp., a Ford Motor Co. affiliate, was the only maker to report a decrease in U.S.-made parts purchases. Toyota Motor Corp. said its purchases totaled $6.47 billion last fiscal year, up 14% from a year earlier. Of the total, imports accounted for $1.34 billion, unchanged from the previous year, while parts purchased for its U.S. plants jumped 18% to $5.13 billion.
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