A Tokyo Head Twister: Look Who's Buying U.S. Cars!

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But the key to success is signing up showrooms. Ford's Suzuki says he needs 700, an increase of 400, to reach his sales goal. Two years ago, he took control of a 284-outlet chain called Autorama, which he renamed Ford in May. The economy has helped him find more. Most of Japan's 17,423 dealer showrooms have exclusive ties to a sole Japanese carmaker. But the recession has put an unprecedented 41% of Japan's dealerships into the red. Some of the dealers believe adding foreign cars to their lineup can help bail them out. Says Atsushi Horigome, a Nissan dealer who now also sells Fords: "We'll never sell Toyotas, but there is definitely a move to diversify. Consumers want variety."

The pressure of U.S.-Japan trade talks, even without any sanctions being imposed, has helped open the door. Merely the threat of them has persuaded the Japanese to simplify the costly car-inspection procedures for importers and ease the industry's grip on the dealership system. Too much pushing on this front, however, could spoil a good thing. Unresolved trade talks help keep the Japanese concessions coming and the yen strong because the largest source of its trade surplus with the U.S. remains untouched. That is one reason U.S. Trade Representative Mickey Kantor did not impose broad sanctions when Washington and Tokyo failed Sept. 30 to reach a market-opening agreement on autos and assembly parts. Another is that Detroit is now selling cars the Japanese way -- on the ground, one by one.