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TOKYO - In a bid
to boost sales in a shrinking domestic market, Japanese auto glass
companies are revving up their production of glass varieties that
filter ultraviolet light.
The manufacturers
face tougher conditions at home because more and more Japanese auto
production is moving overseas under pressure from high domestic costs.
Asahi Glass Co.,
Japan's largest glass manufacturer, said it will increase production
of UV-filtering auto glass to 1.7 million cars this fiscal year ending
March 31, 1997, from 300,000 in the previous year.
Kenichi Imoto, a
spokesman for Asahi, said while UV filters are commonly painted on the
surface, the company last year adopted a new process whereby anti-UV
material is added directly to the glass during the production process.
But foreign glass
companies - who have fought a long battle to try and gain access to
Japan's protected market - say one problem with Japan's oligopolistic
market structure has been a lack of innovation.
This type of glass
has been common abroad for years, they add. ``Japan is far behind
using UV-filtering auto glass for automobiles than the United
States,'' said an official for Guardian Industries Japan Ltd., a
subsidiary of Michigan-based Guardian Industries Corp. Nippon Sheet
Glass Co., meanwhile, said it also introduced similar auto glass last
year. Japan's second-largest sheet glass manufacturer adds that it
hopes half of its auto glass production will soon be this specialty
glass before too long.
"I think
glassmakers are trying to sell this type of value-added product as a
way to increase sales in the domestic market,'' said Chiharu Shima, an
analyst for Barclays de Zoete Wedd Japan Research.
Shima said Japan's glassmakers are
being pressured by auto companies to lower prices.
"Glassmakers
are desperate to sell the more expensive UV-filter auto glass, while
they keep the manufacturing cost as low as possible to make such
glass,'' the analyst said.
A spokesman for
Nippon Sheet Glass said the newly introduced UV-filtering auto glass
is less difficult to manufacture than previous versions.
Only Japanese
luxury cars used to be equipped with UV-filtering auto glass. But
Japanese automakers have started installing more of the sun-bloc auto
glass for regular cars. Among other things, this glass can help cut
fuel expenses when drivers are using air conditioning.
A spokeswoman for
Toyota Motor Corp. said the company has increased its use of
UV-filtering auto glass to include 12 models.
Shima, the
analyst, said Japanese automakers wouldn't buy UV-filtering auto glass
from foreign companies although the carmakers know imported glass is
cheaper and better.
The analyst said
imported auto glass faces even more barriers than regular sheet glass
in Japan because of the close relationships between Japanese
automakers and glassmakers.
A Toyota
spokeswoman said the company's luxury car model, Celsior, is the only
one equipped with so-called green glass, a high quality UV-filtering
auto glass. The glass is of a better quality than regular UV-filtering
auto glass.
The Toyota
official said the auto glass is manufactured by Libbey Owens Ford Co.
in the United States. But Libby is a related company of Nippon Sheet
Glass.
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