Toyota's chairman is urging Japanese car companies to consider raising prices or finding some other way to give ailing US rivals General Motors and Ford a boost to head off the potential of a protectionist backlash in the crucial North American market.
Toyota Motor Corp chairman Hiroshi Okuda was quoted by Japanese media yesterday as saying the plight of General Motors Corp and Ford Motor Co could result in problems for Toyota and other foreign carmakers.
"I'm concerned about the current situation surrounding GM. Although a trade conflict, like ones happened in the past, may be avoided, there may be some impact [on Japan's car industry] because the car industry is symbolic in the US economy," Okuda was quoted as saying by the Japanese daily Asahi Shimbun.
Okuda told reporters on Monday that Japan's auto industry must consider a response, such as raising car prices in the US and cooperating in technology.
"We need to give some time for American companies to take a breath," Okuda was quoted as saying by the Nihon Keizai Shimbun, Japan's biggest business daily.
A Toyota spokeswoman on yesterday confirmed those quotes, but added that the company has no plans to raise its prices on US models.
Speaking on condition of anonymity, she also noted that Okuda was speaking in his capacity as the head of the key Japanese business lobby Keidanren.
Toyota and other Japanese automakers were the target of US workers' outrage in the 1980s. The Japanese were accused of robbing jobs from American workers and market share from US automakers.
Such sentiments have since subsided because Toyota and other Japanese automakers increasingly produce cars in the US, creating jobs for thousands of Americans.
But Okuda's comments appeared to be an attempt to stave off any possible backlash. His remarks also suggests that he sees American automakers as needing help to compete with Japan's car companies.
Last week, General Motors reported a loss of US$1.1 billion for the January-March quarter, its biggest quarterly loss in more than a decade, partly because the Detroit automaker has been losing US market share to Asian automakers.
While faring better than GM, Dearborn, Michigan-based Ford is also losing market share and says it could sink into losses or break even in the second quarter.
Toyota, based in Toyota city in central Japan, has already beaten Ford to become the No. 2 automaker in global vehicle sales. Some analysts believe it's just a matter of time before it catches up with GM, the world's biggest automaker.
Other Japanese auto firms are also reporting good performances.
On Monday, Nissan Motor Co posted record profits for the fiscal year ended March 31 with US vehicle sales surging 18 percent from a year ago.
Honda Motor Co reported a 5 percent increase in fiscal year profit yesterday as sales climbed to a record for the fourth straight year.
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