Hotline

Early in September, GM’s President F. James McDonald toured the recently constructed facilities Suzuki created specifically to produce the new “M” –car as GM’s import for the U.S. The mini-compact is slated for the ’85 model year introduction. Bob Stempel, GM’s v.p. and general manager of Chevrolet, says that between the M-Car and the Isuzu built in-Japan R-car, another mini-compact, as many as 220,000 units are expected to be brought in and marketed – mainly by the Chevrolet Division. These import vehicles are in addition to the fall of ’84 (’85 model) start-up of Toyota-engineered Corolla Sprinter hatchbacks to be built in GM’s Fremont, CA, plant.

During McDonald’s Tokyo visit, Japan’s minister of international trade and industry, Sosuke Uno, displayed uncharacteristic discourtesy by canceling a scheduled meeting. McDonald still took the opportunity to campaign for “an extension of voluntary auto export restraints.” Importantly, he also indicated that projected imports from Suzuki and Isuzu autos by GM should be taken into account in establishing the limits.

Most of us know that this is a delicate position for GM. Since 1981 the voluntary Japanese import restrictions have held at 1,680,000 units annually, and the importers are eager to have the restraints lifted or raised substantially since their dealers’ day-supply is the lowest in the industry. Even with growing sales recovery, Ford steadfastly supports the current import levels, while Chrysler has said that they want them lowered.

It all appears to be in the eye of the beholder.

Upon returning from his European post to take on Chevy Stempel said: “I didn’t come back from Europe to build Japanese cars.” Later he said: “Chevrolet doesn’t have time to fill these (mini-compact) gaps, and we see an emerging market for cars in the $5,000 to $5,500 range.” Interestingly, Stempel is also quoted as saying: “If we can’t match the Japanese, then we don’t deserve to be in this business.”

In addition to these import restrictions, GM must also obtain the blessing of the FTC on the joint venture with Toyota for the Sprinter production in California. Not surprisingly, GM’s competitors are waging full battle against the approval. Also, with GM’s April move to define dealers by models instead of makes (as in the past) there is some question as to just which dealers, within a make, will be able to market the imported cars. But without a significant change in the current import restrictions, none of us will have to be concerned.

The eye (view) of the beholder is subject to change.

ED BOBIT