FT932-1338 _AN-DFXCNACIFT 930624 FT 24 JUN 93 / Parliament and Politics: Warning on car companies THE arrival of Japanese car companies as manufacturers in the UK has had a big effect on upgrading the quality and productivity performance of some of the larger players in the UK motor and components industry, Mr George Simpson, chairman of the Rover vehicles group, told MPs yesterday. But there is a danger that many smaller and medium-sized suppliers will disappear unless the big components companies pass on the lessons learned from their Japanese customers, he told the Commons trade and industry committee, which is inquiring into the competitiveness of UK manufacturing industry. Most carmakers have sharply reduced the number of their direct component suppliers, forging partnerships with them and expecting them to have strong design and development capabilities. Smaller and medium-sized companies are, in effect, becoming suppliers to the larger 'first tier' component groups. Describing the overall impact as 'very much beneficial' to the UK motor industry, Mr Simpson warned that as production by Nissan, Toyota and Honda increases competitive pressures throughout the EC will intensify and that 'they will reduce everyone's market share'. For that reason, the government should resist pressures to open the UK market completely to Japanese imports while other EC member states kept restrictions in place during the EC's transition to a completely open market by the end of the decade. Countries:- JPZ Japan, Asia. GBZ United Kingdom, EC. Industries:- P3711 Motor Vehicles and Car Bodies. P3714 Motor Vehicle Parts and Accessories. Types:- NEWS General News. The Financial Times London Page 9