Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, May 24, 1995 TAG: 9505240107
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
SOURCE: The New York Times
DATELINE: TOKYO LENGTH: Medium
``If there is legal ground to act, we have to explore the possibility,'' Toshiaki Taguchi, a Toyota director in charge of North American sales and public affairs, said Tuesday.
But he and a company spokesman said the company had not made a decision. If action is taken, they said, it would not occur until sanctions actually are imposed on June 28.
Toyota also warned Tuesday that earnings would suffer if the United States imposed 100 percent tariffs on 13 models of Japanese luxury cars. The 13 include all five Lexus models made by the company. Toyota, Japan's largest automaker, warned about the tariffs' impact while reporting strong earnings.
Besides Toyota, other automakers and American dealers of Japanese luxury cars were believed to be exploring court action to stave off the tariffs.
``Such an idea is widely talked about among Toyota and other manufacturers,'' said Eiji Hirabayashi, the spokesman for Toyota in Tokyo.
Another company official said the Washington law firm of Hogan & Hartson, which represents Toyota Motor Sales U.S.A., the company's American sales arm, had prepared a memo outlining the possible legal approaches but cautioning against proceeding.
A lawsuit would have to be filed by Toyota's American subsidiary. Because a case that might take years to resolve would be of little help, a company filing a lawsuit would no doubt seek an injunction to stop the tariffs from being imposed.
It was difficult to predict how successful such a lawsuit might be. The proposed tariffs fall under Section 301 of U.S. trade law, which never has been challenged in court.
The tariffs would formally go into effect June 28 but would be retroactive to cars that entered the United States as of last Saturday.
Hirabayashi said the company was particularly considering a lawsuit that would contend it was illegal for the government to make the sanctions retroactive.
Toyota is concerned about that because it is continuing to export Lexus cars to the United States. If the tariffs were applied retroactively, the company would face a huge payment on luxury cars that already have entered the United States.
by CNB