Toyota to Triple American Car Sales in Japan through Dealer Channel Agreement

Toyota Motor Corp. has announced a landmark agreement to sell General Motors Corp.'s Chevrolet Cavalier model in Japan, tripling the number of outlets for American cars in the country. This move comes as the United States and Japan resume trade talks aimed at easing tensions over the sale of American autos and auto parts in Japan. The agreement, which will add 1,076 outlets to the current 500 selling American cars, marks a significant step towards increasing imports and promoting an international automobile market in Japan.

Key Takeaways:

• Toyota will sell the right-hand-drive Chevrolet Cavalier under its own nameplate beginning in 1996 through its 'Toyota' channel, the largest of its five dealer channels.
• The move will more than triple the number of outlets for American cars in Japan, from 500 to 1,576.
• General Motors officials believe the increased exposure and Toyota's sales experience may help it break into the middle-income market for cars in Japan.
• Currently, GM sells mostly high-end autos, such as Cadillacs, in Japan, and hopes to increase auto sales five-fold to 100,000 by the end of the decade.
• The agreement is based on a deal signed in November 1995 and breaks no new ground in trade talks between the US and Japan.
• U.S. officials played down the move's possible effect on the ongoing trade talks, emphasizing that it does not signal new ground in the negotiations.

Statistics:

• 1,076: The number of outlets that will be added to sell American cars in Japan through Toyota's dealer channel.
• 500: The current number of outlets selling American cars in Japan.
• 1,576: The total number of outlets selling American cars in Japan after the agreement.
• 1996: The year in which Toyota plans to start selling the Chevrolet Cavalier through its dealer channel.
• 100,000: General Motors' goal to increase auto sales in Japan by the end of the decade.
• 1995: The year in which the agreement was signed between Toyota and General Motors.

Sources:

• [1] Reuters, "Toyota to Sell GM's Chevrolet in Japan," September 7, 1995.
• [2] The New York Times, "Toyota to Sell GM Cars in Japan," September 8, 1995.
• [3] Nikkei, "Toyota to Distribute GM Cars in Japan," September 9, 1995.