Japan auto curb: no gainers seen
Bala Cynwyd, Pa.
According to a study released by Chase Econometrics, the recent agreement by Japan to voluntarily limit auto exports to the United States will have the following effects:
* During the first year of import limits, Japanese manufacturers will sell 300,000 fewer cars in the US.
* Only 45,000 of those lost sales will be retrieved by American-made cars. Price inreases will deter all other potential customers.
William R. Pochiluk, director of the study, predicts that "in order to make up their loss in volume Japenese auto manufacturers will be forced to raise prices. . . . American manufacturers will follow suit.
"As a result," Mr. Pochiluk predicts, "The average price paid by the American consumer for a new automobile will be 3 percent higher than it would have b een in an automotive 'free market.'"