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Japanese-Affiliated Automakers: Management Practices Related to Purchasing Parts

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Report Type Reports and Testimonies
Report Date Nov. 14, 1991
Report No. T-NSIAD-92-5
Subject
Summary:

In this testimony, which is based on an earlier report (GAO/NSIAD-88-111, Mar. 7, 1988), GAO discusses trade in auto parts. While there are concerns about the ability of U.S. auto parts and component suppliers to sell to Japanese-affiliated automakers, explanations of these concerns are complex. The fairness of pre-existing relationships between Japanese automakers and parts and components suppliers has come under some scrutiny, although business considerations can also explain observed patterns. GAO concludes that U.S. government agencies involved in this issue must base their judgments and actions on a good analysis of the situation. The U.S. Department of Commerce and the Japanese Ministry of International Trade and Industry will undertake a detailed, jointly sponsored auto parts sourcing study that will analyze parts sourcing at U.S.-based, Japanese-affiliated automakers. In GAO's view, such an analysis should help improve U.S. understanding of the issue and help guide any future action.

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