Japan's car association supports U.S. gov't bailout for Big 3

TOKYO, Dec. 24 Kyodo - The head of Japan's automakers association said Wednesday that an emergency
bailout by the U.S. government of the ailing Big Three automakers is
''necessary'' in light of their importance to the U.S. economy, a core market
for Japanese cars.
But Satoshi Aoki, chairman of the Japan Automobile Manufacturers Association,
added that the industry body wants the Big Three -- General Motors Corp.,
Chrysler LLC. and Ford Motor Co. -- to recover through not only a bailout but
also ''customer-focused'' business efforts.
''Given the auto industry's importance to the U.S. economy, we want them (the
Big Three) to return to health soon. So I think the emergency bailout is
necessary,'' Aoki, chairman of Honda Motor Co., Japan's second-largest
automaker, said in an interview.
Aoki expressed understanding regarding U.S. President George W. Bush's promise
last week to provide $17.4 billion in loans to troubled U.S. automakers, but
said any bailout should uphold free trade principles and be ''fair.''
Aoki said, ''Needless to say, the Big Three need to transform themselves to
raise operating revenues through corporate efforts, such as promptly providing
the customer-focused products demanded by society, in addition to bridging
finance.''
As to the global auto industry, Aoki said there are no clear signs for a
recovery in vehicle sales in 2009.
''Every time market conditions are checked, they get worse. I cannot be sure
where the bottom is,'' Aoki said, adding that sales are slumping at a faster
pace in a broader area amid the global economic downturn.
''Considering whether a sharp recovery is possible next year, I do not see any
specific element that could support a favorable turn,'' he said.
His comments came as Japanese automakers, many of which enjoyed record-high
sales in fiscal 2007, face rapidly deteriorating business conditions due to
falling demand and the yen's sharp appreciation.
Referring to an increasing number of temporary job cuts in the Japanese auto
industry, Aoki called for understanding, saying that automakers have to reduce
production and therefore jobs to cope with falling sales.
''Since around October, the global auto market has changed rapidly by a
significant degree. (Cutting jobs) is one step we're taking to deal with the
change,'' he said. ''I want people to understand this.''
Last week, the carmakers association said new vehicle sales in Japan in 2009
are likely to drop 4.9 percent from the current year to 4.86 million units,
falling below 5 million for the first time since 1978.
Aoki expressed concern over the prospects for vehicle sales in other markets as
well, including the United States and Europe as well as emerging markets,
referring to an accelerated sales slowdown over the past few months.
''As for Europe, Eastern and Central Europe as well as Russia had been very
robust, offsetting sluggish sales in Western Europe. But those markets have
been slowing rapidly,'' Aoki said, adding that India and China have also
started to slow.
''Things are extremely severe,'' he said.
==Kyodo