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Time - Man of the Year
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Time_Man_of_the_Year_Compact_Publishing_3YX-Disc-1_Compact_Publishing_1993.iso
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06019917.000
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1992-10-19
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THE WEEK, Page 24BUSINESSOnce More, With Backing
U.S. auto executives and their Japanese counterparts face off
In the season of summer sequels, the rematch last week
between U.S. and Japanese carmakers, self-described as the Big
Eight of the world auto industry, drew very little attention.
Meeting for four hours behind closed doors at a suburban Chicago
hotel in a session that all the participants described as
"subdued" and "serious," the dueling automen returned to the
central issue of their tarnished visit to Tokyo last March: the
$43 billion trade deficit between the two countries, nearly $30
billion of which comes from Japanese auto products.
This time, however, the chiefs of General Motors, Ford and
Chrysler had more than just the powers of reason and persuasion
on their side. Almost simultaneously, a congressional committee
in Washington was considering new production limits on Japanese
cars, including even those manufactured in the U.S. More
stunning to the Japanese, the Commerce Department ruled for the
first time that Toyota and Mazda were illegally "dumping"
minivans in the U.S. market. The Big Three American executives
brushed aside the timing of these public actions as "only
coincidental."
Industry analysts believe there is an even more compelling
reason why the Japanese may finally open up their domestic
markets to Detroit's products, which include an estimated $19
billion in American-made parts for use in Japanese-built
vehicles. The Tokyo stock-market crash and Japan's ongoing
economic slump have brought increasing financial problems to
Japan's carmakers in their home market. Nissan is even expected
to report a loss this year. It is no time to alienate the U.S.
as a customer. Many trade experts see good news emerging from
this turmoil: a recognition on both sides of the realities of
interdependence and the need for accommodation.