The total value of U.S.-made auto parts purchased by Japan's 11 automakers in fiscal 1997 reached a record high of $24.95 billion, up 9.8 percent from the previous year, an industrial group said Thursday.
In bilateral auto talks in 1995, the United States urged Japanese auto manufacturers to boost their procurement of U.S. parts. Since then, Japanese automakers have expanded local production in the U.S. and their procurements have been steadily increasing, according to the Japan Automobile Manufacturers Association.
Japan's procurement of U.S. parts for U.S.-produced vehicles totaled $21.01 billion in fiscal 1997, ended March 31, up 10.3 percent from fiscal 1996, while imports increased 7.1 percent to $3.95 billion, the group said.
The amount of Japan's procurements for local plants in the U.S. has more than doubled since 1991, according to JAMA.
JAMA also announced that procurements of European auto parts by Japanese automakers also grew 6.9 percent to $5.79 billion in the same fiscal year from a year ago.
Japan's purchase of European parts for local production reached $4.95 million, while imports rose to $834 million, the group said.