Toyota Open to American Carmakers Using Its Japan Sales Network

• Toyota may allow U.S. automakers to use its 4,000-location sales network in Japan.

• The idea emerged during talks between Toyota’s chairman and Japan’s prime minister in May.

• Honda rejected the concept of reverse imports as a solution to the trade imbalance.

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American automakers are being invited to consider using Toyota Motor Corp.’s domestic dealership network in Japan to improve vehicle sales, according to a senior executive of the Japanese company.

Toyota Chief Technology Officer Hiroki Nakajima said the idea was discussed as a possibility during a meeting in May between Toyota Chairman Akio Toyoda and Japanese Prime Minister Shigeru Ishiba. The conversation followed Ishiba’s latest round of trade negotiations with the White House.

“When U.S. manufacturers bring cars to Japan, for example, using Toyota’s sales network to deliver them is an option,” Nakajima said in an interview published June 9 on Toyota’s official media site.

U.S. carmakers currently operate 163 dealership locations in Japan, compared to Toyota’s network of more than 4,000. Nakajima noted that no formal decision was made, but said the idea should be kept under consideration.

“The idea wasn’t rejected during the conversation, and we’ll continue to weigh various options,” Nakajima said.

Another point raised was the potential for reverse importing—selling U.S.-made Japanese vehicles back to the Japanese domestic market—as a way to reduce the trade deficit between the two countries. Although this option seems feasible, are Japanese new car shoppers interested in purchasing U.S.-manufactured vehicles? If the numbers are insufficient, the offer could be moot.

Honda Motor Co. Chief Executive Toshihiro Mibe dismissed the proposal, stating that such imports “won’t fundamentally solve the issue,” and confirmed the company is not exploring that option.

Source: Automotive News