P. M. BRIEFING : Peugeot Warns of Japan Threat

Jacques Calvet, president of France’s Peugeot S.A., warned today that at least one of six major European auto makers will go bankrupt unless reciprocity in car trade between Japan and the European Community is maintained.

“In 10 years, the capacity of Japanese auto makers manufacturing cars in Europe will exceed 1.5 million units, forcing one full-range automobile maker or an equivalent to go bankrupt,” Calvet said at a news conference at the Japan National Press Club.

He said globalization of the auto industry will be hampered unless reciprocity and harmony are established.

Calvet said European auto makers demand that the number of Japanese cars registered in Europe, including locally manufactured vehicles, be limited until European car exports to Japan grow to a reasonable level.

He said the ceiling should be set at a ratio of one European car sold in Japan to two Japanese vehicles marketed in Europe.