Toyota Seeks to Sell GM Cars in Japan : Automobiles: Analysts say a deal between the two giants would have great symbolic significance.

DETROIT — Toyota Motor Corp., the General Motors of Japan, said Wednesday that it is prepared to negotiate with GM to sell the U.S. auto giant’s cars in Japan through Toyota dealerships.

Toyota said in a statement that the step reflects its “commitment to ensuring genuine access for U.S. auto makers to the Japanese market.” It was the first of several announcements expected from Japanese auto producers to answer U.S. complaints of unfair auto trading practices.

GM Chairman Robert Stempel, traveling in Japan with other auto executives on atrade mission with President Bush, said he is interested. But the U.S. firm’s longtime Japanese distributor, Yanase & Co., would have to agree to any deal.

Toyota also pledged several measures to bolster its purchases of U.S. auto components for use in its Japan-built cars as well as the cars it makes in Georgetown, Ky.

A GM-Toyota retail deal would not be unique in Japan. Honda sells Chrysler products there, and Ford and Mazda jointly own a distributorship that sells both companies’ cars in Japan.

But such a tie between GM and Toyota, the world’s No. 1 and No. 3 auto producers, would have symbolic significance as Japan seeks to address U.S. and European complaints that its home market is protected from foreign competition.

In relative terms, the Toyota dealership network could significantly boost GM’s meager sales in Japan, estimated at 10,000 last year. Toyota said a commercial venture with GM could “reasonably” expect to sell 5,000 vehicles a year.

GM and Toyota jointly own New United Motors Manufacturing Inc. in Fremont, Calif., which builds Geo Prizms for GM and Corollas and pickup trucks for Toyota for sale in this country.

Ford and GM dominated the Japanese auto market until World War II. Commodity taxes and tariff duties effectively kept the companies out of Japan until the 1970s. Since then, foreign makers have had little success selling cars there.

The U.S. Big Three firms sold about 18,500 vehicles in Japan last year, less than 1% of the market. German cars enjoy more success, but imports taken together account for just 3% of Japan’s car market.

The Japanese blame quality problems and half-hearted efforts by the U.S. auto producers for their lack of success. But U.S. firms and the government complain that non-trade barriers, including a tough-to-crack distribution system, effectively shield Japan’s auto producers from outside competition.

By contrast, Japanese companies captured a record 30% of the U.S. market in 1991. That big bite out of the market--and recessionary sales levels--have severely weakened GM, Ford and Chrysler, giving rise to the White House trip to Tokyo this week.

Toyota announced its offer in Tokyo and Detroit. Stempel, speaking at a breakfast reception in Tokyo, said, “If we see signs of a market opening, yes, we would like to work with . . . Toyota dealers. Obviously, if the market really starts to grow, you would like your own distribution system, but we are not considering that now.”

In Detroit, a GM source said Toyota has privately “floated that trial balloon” in previous government trade negotiations. But, until now, Toyota has never made any offer to GM, and the two firms have never discussed the possibility.

But the source said people at GM have joked that Toyota could just take over its sales in Japan and GM could take over Toyota’s sales in the United States.

While government-to-government talks were reported stalled Wednesday on efforts to reduce Japan’s $41-billion trade surplus with the United States, other Japanese auto makers have been readying programs to smooth the trade waters at the behest of Japan’s government.

In addition to the proposed GM venture, Toyota said it is “re-emphasizing” to its dealers in Japan that they are free to sell imported vehicles. Toyota also said it is willing to market Volkswagen and Audi vehicles in Japan.

The company also said it will open a “supplier support center” in the United States to help reach its previously announced goal of buying $4.6 billion in U.S. parts and materials in 1994. Last year’s figure was $2.6 billion.

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