daily nebraskan
Wednesday, September 23, 1931
Auto dealers rate imports' effect
page 14
By Tom Shelton
Foreign cars are highly visible in showrooms across the
nation. Japanese autos accounted for 22 percent of all
United States sales last year. More than 1.9 million Japan
ese can were sold.
Last May, when President Ronald Reagan met with the
Japanese Prime Minister Zenko Suzuki, an agreement was
reached whereby Japan agreed to voluntarily reduce its
amount of automobile exports.
Lincoln auto dealers expressed mixed feelings about
the effects of imports on the auto industry.
Heinz Westphal, sales manager of Meginnis Ford, said
he wants severe steps taken.
I think imports should be taxed," he said. "About
$500 to $1,000 per car."
Westphal said the Japanese imports are cutting into the
U.S. auto industry at two high a percentage.
He said the U.S. auto makers are trailing the Japanese
in some areas.
"The imports are a little bit ahead of the VS. cars in
some ways," he said, citing fuel efficiency as an example.
Leroy Kubicek, general manager of Mid-City Toyota,
said Japanese import cutbacks have not affected his
company.
"There isn't much of a change," he said. Kubicek said
Mid-City was selling 7 percent fewer Toyota cars but said
the prices have remained the same.
"It (the 7 percent restriction) doesn't hurt anyone that
much," he said. "If you sold 100 Toyotas before, you sell
93 now. If that hurts your business, then you'd better
quit," he said.
High demand
Kubicek said demand for Toyotas is still high since
prices have stayed about the same.
"The biggest factor hurting sales is interest rates which
have nothing to do with import quotas," he said.
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Import quotas would have to be more severe to affect
prices measurably, he said.
"Import quotas of 15 to 20 percent would hurt and
could create a black market situation," he said, meaning
that demand would cause prices to rise.
Kubicek said Japan's auto workers are more dedicated
to their jobs than their counterparts, the United Auto
Workers, who are fighting to protect their jobs and in
dustry against the Japanese.
Dennis Schworer, sales manager of Randolph Olds-mobile-Honda,
said Japanese dedication has been a
stimulus to American auto workers to work harder.
"I think it's got them on the ball," he said. "More and
more you're seeing smaller cars being built, and of better
quality."
"There is definitely a dedication (in Japan), he said.
"A lot of workers in Japan dont job hop. They start out
and retire with the same company." ,
Quotas are unfair
Schworer said quotas are unfair if they make consum
ers pay more for the cars they want. But, he said, people
have shown a willingness to pay for what they want.
"People will buy what they want," he said. "You cant
erase competition."
Jeff Mellen, sales manager of Misle Chevrolet, said
domestic car manufacturers have a long way to go to re
store faith in the U.S. auto industry, but said tax would
be the wrong way to do it.
"We don't want them (the government) to impose a
$500 tax, there's a lot of import dealers, and it would
hurt them and the consumers who would have to pay in
flated prices."
Mellen said the confidence of Americans has been
shaken by domestic auto workers.
He said confidence could be restored but it would not
be easy.
"They'll have to get the job done and then convince
the public," he said.
fr ""
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Oct. 1
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