Fast Drive from Japan

The go-getting Japanese, who have crashed the U.S. market with everything from cameras to transistors to hibachi charcoal braziers, last week were briskly redesigning their little cars for a full-scale commercial assault. The cars lead a broader invasion of the U.S. market by all manner of Japanese heavy industrial goods. This year Japanese exports to the U.S. will exceed $800 million (v. $229 million in 1952); close to $200 million will be in precision and heavy manufactured goods, directly competitive with products in which the U.S. specializes. Throughout the world, Japanese exports of heavy goods--turbines to Brazil, electric train cars to India, bulldozers to Spain--are targeted to rise this year some 40% to about $700 million.

The biggest Japanese automaker, Toyota Motor Co. (fiscal 1959 sales: $159 million), whose Toyopet was once the tinny target of G.I. gibes ("If you strip off the door lining, you can read the beer-can labels"), streamlined Toyopet to resemble in performance and size a compact U.S. car (14 1/3 ft. long v. Rambler's 14 1/2 ft.). The four-door, six-passenger Toyopet has a 65-h.p. motor, does more than 30 miles on a gallon of gas, sells for $2,239 at port of entry.

Last week, adding its 100th U.S. dealer, Toyota announced that U.S. sales will hit 350 this month. Toyota will start bringing in station wagons this month (price: $2,500), is building an $18 million plant near Nagoya to meet the demand.

Other Japanese carmakers have entered the sweepstakes. The second biggest, Nissan Motor Co., has shipped to the U.S. 2,700 Datsuns (37 h.p., 40 m.p.g.) that sell for $1,616, plans this month to bring in a still lower-priced model, next month to ship quarter-ton pickups and midget station wagons (50 h.p., 40 m.p.g.) to sell for about $1,600. Osaka's giant Daihatsu cartel has started to sell its three-wheeled midget pickup truck called Trimobile. U.S. price: $985.

Why the new Japanese emphasis on precision and heavy industrial products? Much of it stems from pressure by U.S. producers, who have forced Japan to clamp quotas on its lighter, less complex exports, e.g., textiles, tuna, stainless steel flatware, umbrella frames. The insular Japanese live or die by trade. Particularly must they export to the U.S.; last year their imports from the U.S. ran 55% ahead of their exports. Thus they have decided that if the U.S. tightens one market, the way to compete is simply to turn to another.

Japanese trade interests in the U.S. will be represented by Thomas E. Dewey's law firm under a one-year $100,000 contract signed last week. Dewey is expected to help fight moves to curb Japanese imports.

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