Automobiles: Sticker Shock Made in Japan

Car buyers may soon be paying a price for the bitter trade tensions between the U.S. and Japan. Several Japanese auto manufacturers, including Honda and Nissan, said last week they were contemplating price hikes on some models sold in the U.S. Toyota has already raised the price of its redesigned 1992 Camry sedan by nearly 18%, to $14,368.

Nissan and Toyota cite the rising value of the yen. But several analysts say the Japanese firms are anticipating a move by Tokyo trade officials, responding to pressure from Washington, to limit the number of Japanese cars exported to the U.S. Raising prices would be one way of maintaining profits while curtailing sales.

A jolt of sticker shock from the Japanese could be a boon for Detroit. If the Big Three U.S. carmakers can hold the line on their own prices, they would offer consumers an incentive to buy American.