Federal Trade Commission
Received Documents
June 7, 1996
P894219
B18354900159

ELAINE D. KOLISH
ASSOCIATE DIRECTOR FOR
ENFORCEMENT
BUREAU OF CONSUMER PROTECTION
FEDERAL TRADE COMMISSION
WASHINGTON D.C.  20580

DEAR MISS KOLISH:

THANK YOU FOR YOUR LETTER OF APRIL 29, 1996.

OBVIOUSLY, MY LETTER OF MARCH 19, 1996, DID NOT CLEARLY EXPLAIN HOW
THE JAPANESE ARE DUPING AMERICANS INTO THINKING THAT BUYING
JAPANESE CARS IS A GOOD FOR THE  AMERICAN ECONOMY AND THE AMERICAN
AUTOMOBILE INDUSTRY AS IF THEY WERE BUYING A CHRYSLER, FORD OR GM
PRODUCT.

THE ONLY REASON WHY THE JAPANESE USE THE "MADE IN AMERICA" OR BUILT
IN AMERICA" STATEMENT FOR SOME OF THEIR CARS IS TO LUBE AMERICANS
INTO THEIR AUTO SHOW ROOMS. ONCE THERE THE JAPANESE HAVE ACHIEVED
THEIR OBJECTIVE.  IT IS TOO LATE FOR REGULATIONS; COMPONENT ORIGIN IS
NOT AN ISSUE IN THE PURCHASE OF THE CAR.  THAT IN ITSELF VIOLATES YOUR
OWN DEFINITION OF YOUR RESPONSIBILITIES; "15 U.S.C. # 45.  A DECEPTIVE ACT
OR PRACTICE IS ONE THAT IS LIKELY TO MISLEAD CONSUMERS ACTING
REASONABLY UNDER THE CIRCUMSTANCES."  OBVIOUSLY YOU DO NOT THINK
THAT A STATEMENT MISLEADS CONSUMERS ACTING REASONABLY UNDER THE
CIRCUMSTANCES.  WHY NOT?

FOR EXAMPLE, TOYOTA'S COMMERCIAL STATES THAT THEIR "FLAGSHIP" CAR
THE AVALON IS MADE IN AMERICA.  THERE IS NOT A SINGLE PART FOR THE
AVALON MADE IN AMERICA.  ACCORDING TO THE LATEST "IMPORT TRADE
STATISTICS" JAPANESE CARS AND JAPANESE CAR PARTS HAD A SIGNIFICANT
INCREASE THE LAST PERIOD.  THE SAME CAR PARTS WHICH N TOTAL ARE USED
TO "ASSEMBLE" ALL JAPANESE CARS, WHICH YOU ALLOW JAPAN TO CLAIM ARE
MADE OR BUILT IN AMERICA, INCLUDING THE AVALON.

RECENTLY GM HAD A "STRIKE" AT ONE OF IT'S SMALL MANUFACTURING
PLANTS WHICH FORCED THE CLOSING OF OTHER GM PLANTS.  IT HIGHLIGHTED
THE NETWORK OF SMALL PLANTS WHICH MANUFACTURE THE HUNDREDS OF
PARTS WHICH GO INTO BUILDING A CAR.

JAPAN HAS NO NETWORK OF MANUFACTURING PLANTS IN AMERICA, JAPAN
DOES NOT USE ANY CAR PARTS WHICH ARE MANUFACTURED IN AMERICA, ALL
OF THE PARTS FOR JAPANESE CARS ARE MADE IN THE ORIENT THEN SHIPPED
HERE FOR ASSEMBLY.  SO WHY DO YOU ALLOW THEM TO USE THE PHRASE
"MADE IN AMERICA" OR "BUILT IN AMERICA"?  ASSEMBLY ALONE HARDLY
MINIMAL WORK FORCE WITH MINIMAL SKILLS.

ALLOWING THEM TO USE SUCH PHRASES MERELY INDUCES MORE CONSUMERS
TO BUY JAPANESE CARS THINKING THAT THEY INDEED ARE GOOD FOR THE
AMERICAN AUTOMOBILE INDUSTRY.  THE DELAY FOR A COMPREHENSIVE
REVIEW" WILL RESULT IN ONLY ONE THING; AN INCREASED DEMAND FOR
JAPANESE CARS, AND CONVERSELY REDUCING THE DEMAND FOR AMERICAN
CARS.  THEREBY FORCING THE CLOSING OF MORE SMALL PLANTS IN AMERICA
WHICH MANUFACTURE THE PARTS FOR AMERICAN CARS.  SUCH CLOSURES
RESULT IN THE LOSS OF HIGH TAX PAYING JOBS.
IF A SMALL NUMBER OF PARTS FOR AMERICAN CARS ARE MADE ELSEWHERE,
THAT I SOF NO CONSEQUENCE BECAUSE THE HIGHLY PAYED/HIGH TAX PAYING
JOBS OF DESIGN AND MANUFACTURE ARE PERFORMED HERE.  WHILE SUCH HIGH
PAYING JOBS FOR JAPANESE CARS ARE PERFORMED IN JAPAN.  ASK THE
JAPANESE ASSEMBLY PLANTS IN AMERICA; HOW MANY AMERICAN
MANUFACTURES SUPPLY THEM WITH PARTS FOR THEIR CARS?

                                        YOURS SINCERELY,