1、Order Code RS22620March 13, 2007The 2006 Increase in U.S. Motor VehicleImports from JapanStephen CooneyIndustry SpecialistResources, Science, and Industry DivisionSummaryImports of motor vehicles (automobiles and light trucks) from Japan increased byone-third in volume from 2005 to 2006, rising to m
2、ore than two million units, thehighest yearly total since 1989. Some Members of Congress have expressed concernthat the export of cars from Japan to the U.S. market has been assisted by a policy of theJapanese government to reduce the exchange rate of the yen. This could give producersbased in Japan
3、 a trade advantage when they export vehicles to the U.S. market, incompetition against those made in the United States. Alternative factors that may alsoexplain the 2006 import increase are rising sales of imported subcompact vehicles,which are not built in the United States by any manufacturer, and
4、 a shortage of U.S.manufacturing capacity by two leading Japanese-owned automotive manufacturers.Toyota and Honda are now rapidly expanding their North American production, adevelopment that may reduce net imports, but could further increase the competitivepressure on the Detroit-based “Big Three” m
