Auto News From Japan - May 2002
Daily News---May 2002
May 30, 2002Mitsubishi reveals plans for the second year of Turnaround PlanIn FY2001 (starting from April 2001 and ending in March 2002), Mitsubishi has achieved profitability for consolidated business performance. They successfully established cost reduction systems for material procurement and fixed expenses. This year, the second year of the Turnaround Plan, they are scheduled to aggressively introduce new models, including a new compact car jointly developed with DaimlerChrylser. Although their North American business is showing improvement, their domestic business performance has been in bad condition due to lack of new models. They also plan to concentrate on reducing debts which have been accumulating for years. Through alliance with DaimlerChrysler, Mitsubishi will share B, C and D segment platforms, which they hope will allow them to improve afterservice. In terms of environmental strategy, they are planning to introduce HEVs after they clear cost problems.Toyo Rubber & Tire to expand sales to parts makersToyo Rubber & Tire plans to shift their major target customers from automakers to parts makers. This is in line with expansion of modularization. They plan to join the early stage of module production by parts makers with their anti-vibration rubber for suspensions. They also plan to use know-how for modularization by WOCO Michelin AVS, their business partner in Europe. This year Toyo Rubber started a new mid-term business plan, ending in FY2004, and they declared that they will expand business as a tier 2 supplier to expand sales share.Teikoku Piston Ring and Art Metal to expand business in ChinaTeikoku Piston Ring announced on the 29th, that they will start production in China by capital participation into a joint venture between a Chinese company and Art Metal MFG. The new company, located in Anwhei, will be established in September 2002 with total capital amount of $8 million. Art Metal and Teikoku Piston Ring will pay 50 percent and 15 percent respectively. The new company will supply piston rings as sets to engine makers. Art has a piston production base in Thailand while Teikoku has two Chinese plants which produce piston rings, cylinder liners and sintering parts and five other overseas plants.Sumitomo Metal to form a comprehensive tie-up with Michelin and Arvin-MeritorSumitomo Metal announced on May 29 that Ring Techs, their 100 percent subsidiary, formed a comprehensive tie-up with Michelin and Arvin-Meritor for steel wheel business. Through the alliance, they intend to speed up development and production time by using their global production systems. The main goal through the alliance is to standardize specifications for steel wheels to create high efficiency production systems to satisfy customers. This is in line with automakers' move to share platforms worldwide. They also plan to expand business opportunities by providing easy access to global automakers. Sumitomo Metal will support them by conducting basic development. Ring Techs has a 25 percent sales share in Japan while Mechelin has a 28 percent share in Europe and Arvin-Meritor holds a 18 percent in North America. As a result, total annual production of three companies will reach 47 million units. It will also make them the third world largest steel wheel maker with a 25 percent share.Hongo to greatly improve their pressing facilitiesHongo, a leading pressing parts maker, is scheduled to conduct a large-scale modification for their facilities in Fukushima prefecture. They supply frame parts mainly to Honda, Toyota, Hino and GM. Recently, they have strengthened their overseas production facilities in North America, India and China in accordance with Honda's business expansion but they have been postponing modifications for domestic plants. However, demand from Honda and Hino (for truck cabin frames) in Japan is increasing. In addition, safety regulations have been getting stricter and required tension strength is expected to reach 80 to 100kg. They plan to expand the floor size by 12 percent to 36,960m2 of the current facilities and add an 800 ton blank pressing machine and a 2500 ton transfer pressing machine. With the new facilities, they plan to achieve 57 percent and 30 percent increases in blank and transfer efficiency.Toyoda Machine Works to produce axle shafts in the UKToyoda Machine Works plans to start production of axle shafts at their UK subsidiary, Toyoda-Koki Automotive UK (TAUK) in Wales. TAUK currently specializes only in power steering parts (pumps and pipes). Their production has been decreasing due to negative exchange rate fluctuations and automakers' production shift to the European Continent. In order to increase income at TAUK, they have decided to include suspension parts in their lists. They are scheduled to supply axle shafts to TMUK, Toyota's UK plant, for the Corolla since they have already supplied the parts in Japan. As a result of their entry into the suspension parts market, TAUK sales are expected to increase by 30 percent.May 29, 2002Car production in April increasesOn the 28th, JAMA announced that car production in April increased by 2.7 percent to 777,497 units. The figure grew for the first time in three months. Production of compact passenger cars finally showed increases for the first time in three month and figures for large trucks continued to increase for 4 straight months. Total passenger car production increased for the fourth consecutive month: up 10 percent to 279,859 units for standard passenger cars, up 0.2 percent to 278,776 units for compact cars and up 7.9 percent to 101,926 units for subcompacts. However, total truck production declined and reached the lowest ever for April alone: up 5.1 percent to 48,032 units for standard trucks, down 19.1 percent to 30,455 units for small trucks and down 18.9 percent to 33,704 units for mini trucks. Nine automakers, excluding Mazda, Isuzu and Daihatsu, achieved increases and Honda and Hino showed two-digit increases in monthly production. Although domestic sales fell by 1.5 percent, exports, especially to North America, are expected to reach a 10 percent increase.
Mitsubishi to concentrate investment in the major marketsMitsubishi plans to increase income by concentrating investment on the four major markets where they can expect to achieve the highest profitability. They used to handle a full-lineup ranging from large to subcompact passenger cars but they have decided to focus on subcompacts, minivans, SUVs and sedans. By reorganizing their business system, they intend to achieve a 4.5 percent sales/operational income ratio. They have so far succeeded in cost reduction to bring profitability in Japan and Europe in accordance with the Turnaround Plan. In 2002, which is their second year of the Turnaround Plan, they think that new products that can help them achieve the large sales volume that will be needed to further increase income. Last year, their sales share gradually increased due to an introduction of the eK wagon. In their plan, they will introduce 10 new models in three years. They are scheduled to launch a new compact car this coming November and a new minivan next spring. They also plan to introduce minor changes and additional versions to the current models.Honda to make a large improve in the StepwagonHonda will strengthen product competitiveness of the Stepwagon to increase their sales share in the minivan market prior to the August bonus season. They plan to adopt electronic controlled slide-doors for both sides. Dual slide-doors were first adopted by Mazda for the MPV introduced in April. The latest Stepwagon was introduced April 2001 and average monthly sales last year maintained a high level of 12,000 units. However, since Toyota introduced the same class model, the Voxy/Noah, sales of the Stepwagon have been decreasing. Average monthly sales of the Stepwagon this year dropped to 6,000 units and in April the figure was 4,000 units, half their sales target.Hino to handle Scania trailers in ChinaHino has decided to handle large trailers by Scania in China this year. Hino and Scania formed an alliance in March 2002. The two companies have reached an agreement that Hino will sell Scania trailers as an OEM model under Hino brand in 2004 while Scania will procure diesel engines from Hino. Prior to this business cooperation, they will conduct a joint business in China where demand for large trucks and trailers is expected to expand in line with rapid traffic infrastructure development in connection with hosting the 2008 Olympics. In China, Hino will handle their trailers under the Scania name. For the long term, Hino plans to offer the Chinese market a line of ultra-large trucks which is currently under development for the North American market.Asahi Glass develops high IR prevention laminate glassOn the 28th, Asahi Glass announced that they have developed a new laminate glass with high IR (infrared ray) cut ratio. The new laminate glass can greatly reduce discomfort from strong sunshine and prevent a rapid temperature increase in the car. They measured discomfort levels by Skin Healing Factor (SHF) index. The SHF10 level is when people start feeling discomfort in 13 seconds under scorching sun without any prevention. With their new laminate glass, it takes an average of 58 seconds (SHF 45) while conventional glass requires 32 seconds (SHF25). Asahi Glass used indium and tin oxide for IR absorbency and as a result were able to cut waves over 1500 nanometers while still percolating electromagnetic waves used for mobile phones and other communication systems. Their new laminate glass has already applied to the Nissan Elgrand and Toyota Alphard.BMW sells well with the MINI and 7 SeriesAccording to BMW Japan, car delivery to customers cannot catch up with an increasing number of orders since they introduced the new MINI and 7 Series in March. Total sales from January to April this year jumped by 14 percent to 12,629 units. BMW in Germany is also showing strong sales in the first quarter of 2002. Domestic sales of the MINI reached 4,500 units and figures for the 7 Series are 1,000 units while their annual sales target is over 40,000 units. Their motorcycle sales also largely increased by 57.5 percent to 852 units and in the financial sector they achieved a 17.6 percent increase in sales. As a result, their profits grew by 50 percent.May 28, 2002Five automakers reveal April business performanceOn the 27th, five large automakers announced their sales, production and exports in April. All five makers showed increases in overseas production. Honda and Nissan, both of whom showed strong sales for small cars, achieved increases in all areas.(See details for BUSINESS PERFORMANCE IN APRIL) Isuzu to strengthen North American SUV salesIsuzu plans to set up an aggressive sales measure to increase SUV sales in North America. Their 2001 SUV sales have largely declined. They plan to increase investment as a countermeasure to reduce inventory. In 2001, their expenditures for sales were $3,500 per vehicle for the Rodeo Amigo, $4,500 for the Trooper and $2,500 for the Axiom. They plan to increase these expenditures by $1,000 for the Axiom and set the same levels for the other two. The Axiom was introduced in April 2001 and it is designed exclusively for the North American market. Their initial sales target was 22,500 units a year but sales in 2001 were only 10,000 units. This year, they plan to increase the figure to 16,000 units. They are also scheduled to introduce an OEM model from GM this autumn to expand SUV sales. In North America, production of DMAX, a diesel engine production base, contributed to increases in income but slump of SUV sales, their core business, resulted in continuous operational deficits.Nissan to focus on a new IT developmentNissan has started concentrating on development of integrated automobile IT systems. They will increase IT engineers by 1,000 people in Japan this year and set up improved training systems for engineers. Nissan has finalized a contract for purchasing Atsugi campus of Aoyama Gakuin University near Nissan Technical Center to set up R&D facilities. They have traditionally conducted independent development for separate automotive systems, such as engines and transmissions. With the new facilities, they plan to establish a total development system. In their new mid-tem business plan, Nissan 180, they set an additional 1 million unit sales increase as their primary goal. To achieve it, they have concluded that technological development, especially environment and safety technologies, is indispensable.Sumitomo Rubber to supply run-flat tires to ToyotaSumitomo Rubber plans to commercialize run-flat tires for winter use in line with starting supplies of CTT studless tires to Toyota as optional parts. CTT, revealed at Tokyo Motor Show last year, are support ring run-flat tires for mid-size and small cars. It was developed based on DSST designed for the North American market. CTT tires are superior in preventing hydroplaning and driving on icy roads. Sumitomo Rubber has been developing both self-support and support ring types and they plan to provide CTT for mid-size and small cars and sporty cars and PAX type tires for luxury cars and SUVs.IHI expects to produce 2 million turbochargers in FY2005Ishikawajima Harima Heavy Industries has revealed that production of turbochargers is expected to surpass 2 million units in FY2005. The figure is 171 percent of figures in FY2001. The main factor is increasing demand for diesel engine vehicles in Europe. In their FY2005 plan based on the current orders from automakers and engine makers, production will reach 2.2 million to 2.3 million units. Production of Ishikawajima Hanyouki will reach 800,000 units (currently 930,000 units). Figures for IHI Charging Systems in Italy are expected to be 900,000 units (250,000 units), and IHI Turbo Thailand and IHI Turbo America will be 400,000 (none) and 60,000-80,000 units (70,000 units). Production at Jiang Su Ishi Turbo is expected to reach 40,000-50,000 units (30,000 units). They plan to expand production in Europe where diesel engine demand is high and they also plan to increase production in Thailand in line with automaker production expansion there.May 27, 2002Eleven automakers announce FY2001 consolidated business performanceOn the 24th, eleven domestic automakers have completed announcement for their FY2001 business performance. Aggressive cost reduction measures, the yen's depreciation and sales expansion in the US resulted in profit increases. Toyota, Honda and Nissan marked the highest profits ever while Mitsubishi and Mazda finally achieved profitability. However, domestic market has not showed recovery and truck sales plunged.Toyota and Honda maintained the same export level for North America although they concentrated on local production. Exchange rate was 122 yen/dollar for Toyota, which is 12 yen lower than figure in FY2000. Nissan achieved increased profitability in North America due to their NRP cost reduction plan. Nissan also succeeded in achieving profitability in Europe. Toyota and Honda plan to reach profitability by FY2004 at the latest. Automakers now attach the greatest importance on revitalizing the domestic market to bring further profitability. This is because they are required to spend more money on development for environmentally friendly vehicles. Toyota is scheduled to invest 650 billion yen ($5.2 billion, $1=125 yen) on R&D this year.
Second lines denote forcasts for FY2002 Luxury minivans expected to revitalize the market
Toyota intends to obtain a 50 percent share with the Alphard in the minivan market. They used a FF platform to create a small body with a roomy interior while providing easy driving for women users. They achieved 200kg weight reduction, compared to the previous model. They also emphasized creating a luxurious interior. On the other hand, Nissan adopted a FR platform while lowering a body height by 20mm to increase interior space. The two companies are aiming at capturing the top sales with their model. However, they think the competition will bring a good environment to revitalize the market. The two companies have a long history of fierce competition in areas such as Crown vs. Cedric, Corona vs. Bluebird and Corolla vs. Sunny. Matsushita Electric Industrial develops long-lived luminescent lightsMatsushita Electric Industrial has developed long-lived electro-luminescent lights that last for over 5,000 hours. It also has a high bending resistance so that it can be adaptable for various kinds of parts, including thin meter panels. Matsushita Electric Industrial developed a high vapor proof technology for luminescent materials and hardened technology for resin parts to achieve high temperature resistance. They plan to sell the product for 200,000 vehicles a month.Toyoda Machine Works to double production for the Toyota IMVToyoda Machine Works has decided to double their power steering parts production in Thailand. This is in response to production start of the IMV (Innovated International Multipurpose Vehicle), based on the Hilux, by Toyota. Toyoda Machine Works is scheduled to invest 500 million yen to construct a new plant at TMWT (Toyoda Machine Works Thailand).Corns & CO. Ltd. expects a two-digit increase for the MaseratiCorns & CO. Ltd., an importer of Ferrari, Maserati, Rolls Royce and Bentley, has set a sales target of 560 units, up 3.7 percent, in 2002. They expect the same sales level as 2001 for Ferarri, Rolls Royce and Bentley, but they hope their brand promotion for the Maserati will result in a two-digit increase. Last year, they sold 280 Ferarri and 80 Rolls Royce. Although production figures are limited for the Maserati, they think they can sell 200 units, up 11 percent, due to the stable luxury import car market in Japan.Automobile purchase index slightly increasesIn a survey on consumer buying sentiment conducted in April 2002, Nippon Research Institute reported that the automobile purchasing index increased by 8 points to 95 from the figure in February. This is partly because automakers have recently introduced new models and partly due to a concentration of buyers reaching their average ownership termination period at the same time. Index for daily life anxiety declined by 3 points to 152 since unemployment ratio stopped increasing and the economy became stable. The research was conducted on 1437 people ranging from 15 to 79 year-old. According to the report, 8.4 percent of respondents said consumer spending in 2002 will improve (up 4.6 percent) while 52.4 percent said it will deteriorate (down 14.1 percent).May 24, 2002<Nissan Diesel achieves profitability for FY2001Nissan Diesel has reported that their FY2001 consolidated net income achieved profitability. Their domestic sales share for large trucks over 8 tons increased to 24.1 percent. However, their consolidated sales fell by 8.1 percent to 372 billion yen (down 6 percent in Japan and down 23.1 percent overseas). Operational profits declined by 8.8 percent to 11.5 billion yen. But the profit against sales ratio maintained at 3.1 percent and the figure was the top among all four truck makers. Ordinary profits increased by 27.3 percent to 5 billion yen due to cost reduction measures. As a result, their net income was 610 million yen, up 0.9 percent. Unit sales were 164,000 units in Japan (down 4 percent) and domestic production figures were 247,000 units (down 2 percent) while overseas sales fell by 17.3 percent to 98,000 units.Mazda to sell parts with high versatilityMazda is scheduled to start sales of repair parts that can be used for vehicles of other automakers. The brand name of their repair parts will be Motorcraft, designed for the domestic market. It will include about 400 types of oil filters, air filters, brake pads, V belts and wiper blades. This summer they plan to add spark plugs. Their new repair parts will be adaptable for popular domestic models ranked in the top 30. Suppliers for the Motorcraft will be parts makers who have experience supplying global automakers. Period of guarantee for Motorcraft parts is six months, the same period as their genuine parts. Their current ÒGenericÓ brand will be specialized in only Mazda dealers in order to differentiate it from Motorcraft. (Motorcraft is the same brand name as Ford consumable parts but they are completely different.)Daihatsu to strengthen cooperation with Toyota overseasDaihatsu plans to restructure their overseas business in order to achieve over 500,000 unit global sales in 2010. Their sales target is seven times their current figure. They will strengthen production cooperation with Toyota and increase production of small cars mainly in ASEAN nations. Daihatsu has started organizing their new business system to achieve their goal in Malaysia and Indonesia and established a joint venture with Produa, called PCSB, a parts production base, in Malaysia. Daihatsu invested 41 percent in the new company. At ToyotaÕs Venezuelan plant, they will increase production of the Daihatsu Terios from initial 6,000 to 11,000 units. In their mid-term plan, Daihatsu will achieve profitability in Malaysia, the same levels as in Japan, from 2006 to 2010. They are also thinking about production in India and China.Honda uses carbon parts for the new NSXHonda announced that they will introduce the NSX-R, equipped with carbon parts, on May 24. They successfully achieved higher performance through weight reduction with carbon parts. The NSX-R is developed based on the minor changed NSX-R, introduced last December and designed to achieve sporty driving. They used carbon for bonnet hoods with air outlet ducts and rear spoilers and reduced overall weight by 70kg compared to the base model. They also applied front undercover with fins creating down-force to avoid lifting. The NSX-R will have improved final gear ratio and drive-by-wire systems for electronic throttle control. Honda has also developed brake disc rotors combined with strengthened brake pads specially developed for new high grip tires. The former NSX-R was introduced in 1992 and produced for three years. Annual sales target is 60 units and sticker price will be 11,957,000 yen.Akebono Brake receives orders from DaimlerChryslerOn the 23rd, Akebono Brake announced that they have received orders for disc brakes from DaimlerChrysler for the Jeep Grand Cherokee. Annual production is expected to reach 660,000 units as factory installed parts and 220,000 units for the aftermarket. Their products will be supplied through Dana. As a result, Akebono has obtained direct access to the US Big Three. Their disc brake is superior in canceling judder vibration.Domestic paint makers reveal FY2001 business performanceLarge domestic automobile paint makers announced their FY2001 consolidated business performance on May 23. All makers showed declines in both sales and profits. However, they expect their FY2002 income will return to profitability due to clearance of valuation losses. Nippon Paint, the top maker, ended in declines in both sales and profits. Their paint sales for new cars in other Asian countries increased but domestic sales fell due to decreases in overall car production and a shift to small cars. Kansai Paint also experienced declines in both sales and profits. Although their water paint sales for new cars steadily increased, decreases in domestic car production resulted in overall declines in paint sales. For FY2002, they plan to increase sales and profits by introducing environmentally friendly products and restructuring business systems. Rock Paint maintained the same sales level as last year for the construction industry but sales from automobiles, industrial and home appliances fell. For FY2002, they intend to increase sales with HIROCK, a high performance paint for trains, buses and trucks. Dai Nippon Toryo could not expand sales in multi-purpose paints even though they invested in environmental products. Their sales from the automobile repair market also did not increase. Isamu Paint aggressively introduced new products but their sales fell. For FY2001 they will further expand sales of new products starting with aftermarket water paint in September.May 23, 2002Toyota launches a luxury minivan, the AlphardIn line with the introduction of the Alphard, Toyota has decided to reorganize their luxury minivan lineup. They canceled four models, including the Legius, Grand Hiace, Touring Hiace and Granvia. Instead, they plan to concentrate on development of next generation models. Toyota ist sells well At a press conference for the Alphard on the 22nd, Toyota President Fujio Cho said that sales of the ist, a small car introduced on May 8, will reach 30,000 units by the end of this month. The figure is the same level as its competitors, the Honda Fit and Nissan March. Their monthly initial sales target is 15,000 units for the first month but they have received 25,000 orders in the first two weeks. According to Toyota, they initially targeted young people in their 20s and 30s but buyers expanded to people in their 40s to 50s.Suzuki to rename their current lineupSuzuki plans to rename their current lineup in line with model changes. This is in response to their new mid-term plan ending in 2004. In the plan, they are scheduled to shift their entire lineup (15 models) to next-generation types. It also mentions that they will expand global sales by 25 percent to 2,050,000 units. The major items in their lineup, including the Alto and WagonR, maintained high sales levels and their names are widely accepted. The Alto was first introduced over 30 years ago. In order to erase their current image, they hope that changing the names of current models will help facilitate their mid-term plan.Hino develops new hybrid systemsOn the 22nd. Hino announced that they have developed a new hybrid system combining advantages of series and parallel type systems. Adoption of one-way clutch made it possible to combine series and parallel systems with one motor. Compared to the current diesel vehicles, it can increase fuel economy by 180 percent while halving NOx emissions. They have started experiments designed to lead to commercialization by the end of March 2004. Hino first developed parallel hybrid systems, called HIMR, in 1991 and about 300 existing vehicles, mainly route buses, are using HIMR. The new hybrid system needs only a motor for startup. The engine starts during acceleration, then, cruising utilizes both the motor and engine by connecting the engine to the power line with a one-way clutch. They also use ultra-capacitors for stacks, which are replaceable with nickel-hydrogen batteries. Hino is scheduled to announce an article for the new hybrid system at a symposium held by JARI on May 23.Yachiyo Industry to expand plastic fuel tank production worldwideYachiyo Industry plans to strengthen production of plastic fuel tanks by investing about 2 billion yen ($16 million, $1=124 yen) into blow forming facilities in China (500 million yen), Japan (500 million yen) and the US (1 billion yen). They hope that they will achieve annual production of 450,000 units in total. Yachiyo produces six-layer plastic tanks using EVOH, a special plastic, to clear the US emission regulations. Their products will mainly be supplied to Honda, who started adopting plastic fuel tanks with the Civic and plans to expand their application. However, they plan to maintain production of sheet metal tanks in response to continuous demand in South East Asia. Their annual production target for 2004 is 1,450,000 units for plastic tanks (currently 700,000 to 800,000 units) and 1,100,000 units for steel tanks (the same level).JAPIA and MEMA to set up an alliance forumJapan Auto Parts Industries Association (JAPIA) and Motor & Equipment Manufacturers Association (MEMA) plan to set up an alliance forum in order to facilitate cooperation and keep up with globalization. It is scheduled to open meetings for business talks between members of JAPIA and MEMA.May 22, 2002Nissan Elgrand revealed
At a press conference for the new Elgrand on May 21, Nissan President, Carlos Goshn said that profits from the new Elgrand will triple to fourfold the figure from the March. In line with the implementation of Nissan 180, a new three-year business plan, Nissan is scheduled to start operation of Canton Plant in the US in 2003 and start production of pickup trucks at Renault plant in Brazil. They expect these will greatly contribute to achieving their target of an additional 1 million unit sales in the global market. In technological development field, by 2003 they plan to achieve ULEV levels for 80 percent of their passenger lineup by investing in large range from diesel engine, hybrid systems to FCEVs. DaimlerChrylser to procure large truck engines from MitsubishiDaimlerChrysler has revealed that they will procure engines from Mitsubishi for large trucks designed for the North American market. They are now concentrating on development of truck diesel engines in accordance with expansion of urea-SCR (Selective Catalytic Reduction) technology in Europe. With urea-SCR technology, urea solution decomposes to ammonia, which reacts with NOx over the SCR catalyst, to generate harmless nitrogen and water. However, the technology may expand only in the European market and their engines may not work in other areas. To avoid this, DaimlerChrysler has decided to use Mitsubishi engines for their North American lineup. Mitsubishi engines are superior in after-burn style emission control through their DPF systems. The two companies have been strengthening cooperation in truck business and Mitsubishi supplies small trucks to DaimlerChrysler's sales networks in Europe. For the next step, they will bring synergy in engine supplies and development in order to keep up with strengthened environmental regulations that differ between countries.Nissan Diesel to expand large CNG truck sales with SPI systemsNissan Diesel has developed SPI (Single Point Injection) electronic controlled fuel injection systems designed for large CNG trucks. SPI is controlled by computer and conducts optimum fuel injection. The new system can increase fuel economy by 10 percent. They have already used the SPI systems for mid-size CNG trucks, which are widely accepted by users. Nissan Diesel, the top maker for CNG trucks, is focusing on development of large CNG trucks to further increase their sales share. However, high prices of CNG trucks hindered sales expansion and their 2001 sales were only 114 units. They plan to emphasize high economy and low running costs of large CNG trucks with SPI electronic controlled fuel injection systems to lure buyers.Toshiba to enter the HEV marketToshiba has announced that they will start production of motors for HEVs at their subsidiary, Toshiba Industrial Products Manufacturing in Mie prefecture. Their motors will be supplied to Aisin AW to be built into their HEV systems for the Ford Escape. Toshiba has spent three years on joint development with Aisin AW. The motor, called permanent reluctant (PR) motor, creates stable torque performance at low to high rpm. Their initial monthly production target is 1,000 units but they will hopefully achieve over 10,000 units in the long run. At the same time, Toshiba will supply 32bit microcomputers for inverter control to Aisin AW. Toshiba lags behind in the automotive market compared to Mitsubishi Electric and Hitachi and they currently produce only semiconductors and car navigation LCD monitors.Hirata to increase pressing parts production in AlabamaHirata, a pressing parts maker in the Honda group, is scheduled to expand production at their joint venture, KLP in Alabama, US, in line with sales increases of Honda's minivan. They currently produce parts for 500 vehicles and plan to increase to 800 vehicles. KLP, established in June 2000, is a joint venture between Hirata, Honda and Hongo. They plan to achieve profitability in FY2003 and cancel accumulated losses in FY2005.Honda to increase special versions this yearIn order to avoid sales declines before the introduction of the new Accord this autumn, Honda plans to increase special versions to the current models. They usually release one special version per model in a year but they will increase this to two. Model changes of their major lineup, including the Accord and Fit and SUVs, are concentrated at year-end. Special versions generally require lower costs than minor changes. From January to April, their sales increased by 20.7 percent due to strong sales but sales increase ratio in April slowed down to below 10 percent.May 21, 2002Mazda launches the AtenzaThe Atenza is the first model designed after Mazda was appointed as a COE (Center of Excellence) for small FF model development in the Ford group. The newly developed platform consists of a reinforced body and high mounted double wishbone front suspension combined with E multi-link rear suspension to create stable steering and brake operation. They adopted the newly developed aluminum in-line 4cylinder MZR 2000DOHC and the 2300DOHC engines. The 2300DOHC features high torque performance and low emissions with combinations of various systems: sequential valve timing systems and variable induction systems mounted in the resin intake manifold, catalyst converters located under the floor and a dual-pipe exhaust manifold. They adopted "karakuri inspired seat design", allowing the rear seat to fold completely flat at the just the touch of a button in the luggage compartment. It is available for the sport and sport wagon. The Atenza is produced at Hofu plant and this autumn they are scheduled to start production of the Mazda6 at AAI, a joint venture with Ford in the US. At AAI, Mazda will use Ford lines making it to produce three different versions of the Mazda6. For the European market, they plan to apply newly developed diesel engines. Their annual global sales targets total 200,000 units (30,000 units for Japan, 60,000 units in Europe, and over 60,000 units in North America). Sticker prices are 2,100,000 yen for the Sport 23 C with 5 doors and a 2300DOHC engine and 2,360,000 yen for the Sedan 23E with a 2300DOHC engine and luxury package. Nissan marks the highest business performance in FY2001According to an announcement by Nissan on May 20, FY 2001 consolidated ordinary, operational and net income reached the highest ever. Operational income expanded in Japan and North America while figures in Europe returned to profitability (3.2 billion yen). However, consolidated sales in the domestic market fell by 2.3 percent to 3.83 trillion yen due to declines in unit sales and selling off their 18 affiliates, normally included in consolidated figures. On the other hand, overseas sales were in good condition: up 5.6% to 2.383 trillion yen in North America and up 1.3% to 852 billion yen in Europe. Total consolidated operational income was 489 billion yen (up 68.5%), ordinary income was 415 billion yen (up 46.9%) and net profit reached 372 billion yen (up 12.4%).Suzuki achieves increases in FY2001 sales and profitsSuzuki announced on the 20th that their consolidated sales and profits jumped. Sales increased by 4.2 percent to 1.7 trillion yen and ordinary income also increased by 2.5 percent to 52 billion yen. This is mainly due to sales increases in North America and Europe, in addition to favorable exchange rate fluctuations. Depreciation of the yen against the US dollar and euro worked hand in hand with cost reduction measures to create increases in both consolidated operational income (up 15.2 percent to 58.5 billion yen) and net income (up 10.6 percent to 22.4 billion yen). Their domestic automobile sales declined even though they aggressively released compact cars, including the Chevrolet Cruze and MR wagon. However, their overseas automobile sales increased by 1.8 percent partly due to the introduction of the Aerio sedan. In the motorcycle market, their sales in Japan fell despite introductions of various models, including an OEM model from Kawasaki but in the overseas market sales increased due to brisk sales of the GSX-R1000. As a result, consolidated motorcycle sales increased by 14.6 percent.Toyota to adopt CATIA for CAD/CAMToyota plans to cancel their inhouse integrated CAD/CAM system and adopt a CATIA based system this year. In line with their global strategy, they have decided to use systems commonly used in big markets so that they can reduce the burden on overseas suppliers. The new system will be developed based on their current CAD/CAM system and suppliers will also be able to access it with their current systems. Toyota plans to expand procurement from new suppliers with the system.Kuboko Paint to enter the Chinese marketKuboko Paint has revealed that they will enter the automobile repairing paint market in China in response to their entry into WTO. They plan to entrust sales to a leading paint maker in Taiwan. They are scheduled to exhibit their products at an automobile painting show in China to be held this month and see responses in order to decide business plans. This will be the first time for Kuboko to enter another Asian market. They plan to sell "Altima2K", a base coat originally developed for the Japanese market. They also plan to provide technological support. They hope soon be able to start OEM supplies to paint makers operating in China.May 20, 2002Nissan to adopt Brake by Wire systemNissan plans to adopt "Brake by Wire" systems for their passenger lineup for the domestic and North American markets in three years. European automakers have already started applying these systems for their luxury lineup. In Japan, Toyota has used brake by wire systems for the Estima Hybrid. With the system, integrated control can be carried out with sensors collecting data during operation. In the domestic market, Nissan has been applying brake assist systems for almost all their vehicles. For the next generation models starting from 2005, they plan to improve brake control technology to increase safety levels.Fuji Heavy Industries and GM to modify their initial joint plansFuji Heavy Industries and GM has decided to shift their initial plans from joint development of a luxury SUV to independent development by Fuji Heavy Industries in order to avoid overlapping models between the two companies. The new SUV will be a flagship model of Fuji Heavy Industries for the North American market. At the same time, the two companies plan to use the Legacy as a base model for a completely new jointly developed vehicle and introduce the model in 2005. GM is expected to make Subaru models equipped with horizontally opposed engines and 4WD systems their premium brand in order to increase competitiveness. For the Traviq, an OEM model from GM, Fuji Heavy Industries plans to develop the next model using a next-generation platform designed for 1.5 to 2 liter vehicles.Fuji Heavy reveals a new mid-term plan "FDR-1"On the 17th, Fuji Heavy Industries announced a new mid-term plan, called "FDR-1" targeting FY2002 to 2006. In their plan, they are targeting a 37 percent consolidated sales increase to 1,840 billion yen ($14.6 million, $1=126 yen). They also plan to achieve 100 million yen sales each in Japan and the US. The three major pillars of FDR-1 for automobile business are "performance", "safety" and "environmental friendliness" and they will concentrate on development of new platforms and hybrid power sources. In FY2006, they plan to achieve 110 billion yen for operational income (up 24% from FY2001) and 57 billion yen for net income (up 88%). Their 2006 unit sales target is 350,000 units for the domestic market (up 25 percent) and 410,000 units for the overseas market (up 48%): 280,000 units in the US (up 37%), 60,000 units in Europe (up 100%) and 70,000 units in other areas (up 67%).On the same day, Fuji Heavy Industries revealed that they will conduct organizational restructuring. They will separate aerospace, industrial machinery and environmental divisions and establish three companies to speed up business efficiency and free them to concentrate on their automotive business. At the same time, Fuji Heavy Industries will set up "Subaru strategy headquarters" to draft plans and integrate sales, technology, production and purchasing for both their automobile business and the three spin-off companies. Mazda to increase recycling ratio for FCEV partsMazda has started focusing on increasing recycling ratio for FCEV parts. They are participating in FCEV joint development of Ford and DaimlerChrysler and are also conducting FCEV public road tests in Japan. FCEVs are the major candidate for the next-generation clean vehicle. They use parts and materials that are substantially different from those of gasoline vehicles, including reformers, stacks and platinum, which require high costs. In order to achieve both environmental friendliness and cost reduction, Mazda plans to establish systems creating high recycling ratio at an early stage. They also plan to propose their technology to Ford and DaimlerChrysler.Toyota Auto Body to expand overseas businessToyota Auto Body plans to start production of special purpose vehicles in China and automobile parts in North America in line with Toyota's overseas expansion. They currently produce vehicles in Thailand, Indonesia and Taiwan. At their TAW Thailand plant, which manufactures the Hilux, they plan to start production of the IMV, Toyota's world strategy model, in 2004. In Indonesia, production of special purpose vehicles and resin parts has been increasing. In China, they plan to produce freezers in response to increasing demand from fresh food transportation business. Detailed plans will soon be revealed.ADVICS to strengthen North American businessLast year, Aisin Seiki, Denso and Sumitomo Electric, with backing from Toyota Motors, established the ADVICS brake system supply company by integrating their various brake divisions. ADVICS has already started development of 10 different products and they are now supplying products to Toyota. They established a subsidiary in North America this January and started operation in April. Their major products will be ABS and VSC systems for North America and their sales target is $500 million in 2005. Toyota will be their first customer and they plan to expand to Ford and GM. Sumitomo has been a tier one supplier for Ford. Their technological development will be centered on "by-wire" systems with hydraulic power units which they have supplied for the Prius and Estima Hybrid. They expect EMB (electronic Motor Brake) type by-wire systems (without hydraulic power) will not be applied in the near future.May 17, 2002JAMA reveals comprehensive propositionAt a general meeting held by JAMA (Japanese Automobile Manufacturers Association) on the 16th, a new CEO, Yoshihide Munekuni, said that in order to revitalize the Japanese automobile market, modifications and simplifications of tax systems will be needed. Currently there are nine different automobile tax systems for registered vehicles in Japan and taxes are relatively higher compared to those in other countries while subcompact (mini vehicle) tax is about the same level. They also plan to push the government to establish infrastructure at an early stage and relaxation of regulations for FCEVs for 2003 introductions. At the same time, they are scheduled to strengthen cooperation with petroleum companies and other related companies to improve quality of diesel fuel in accordance with implementation of new long-term emission regulations.In terms of foreign activity, JAMA plans to try to prevent trade frictions with the US through cooperation with the US government and related groups. JAMA also plans to avoid discriminatory treatment against Japanese automobiles after the US lowers standard levels of CAFE (Corporate Average Fuel Economy) in 2005. For the European market, they will focus on promotion activities through cooperation with European automobile associations. Against piracy of motorcycles in China, JAMA will facilitate a motorcycle intellectual property right project with the Chinese government and try to create open and fair environment in line with Chinese entry into WTO. At the meeting, JAMA announced the integration of three associations: JAMA, Japan Motor Industrial Federation, and Japan Automobile Industry Employers' Association. The new JAMA will take over Tokyo Motor Show and Automobile Library from Japan Motor Industrial Federation. They will use Tokyo Motor Show as an important center for international exchange and communication with automobile users. Yamaha Motor achieves the record high in FY2001According to an announcement made by Yamaha Motor, they achieved the highest figures for consolidated sales and ordinary income in FY2001 (starting in April 2001 and ending in March 2002). This is due to increasing sales of motorcycles (up 11.9%) and marine products (up 7%) covering losses in industrial machines in addition to favorable exchange rates. Total sales increased by 7.1 percent to 947 billion yen ($7.4 billion, $1=128 yen) although domestic sales dropped by 13.5 percent. Sales figures increased for the third consecutive year. Operational and ordinary profits sharply increased by 17.1 percent and 30.3 percent, resulting in a 25.3 percent increase in net profits at 9.5 billion yen ($74 million). For FY2003, they plan to achieve a 3.5 percent sales increase and more than double their net income (20 billion yen). To achieve the figure they have to increase 31.7 percent and 40.8 percent for operational/ordinary income.DaimlerChrysler to procure car navigation system from AlpineAlpine is scheduled to start OEM supplies of car navigation systems to DaimlerChrysler this summer. They currently supply them to Honda in North America. They have experience supplying car navigation systems for Mercedes Benz and Jaguar in Europe but this is the first time for them to supply OEM products to a US automaker. The car navigation system that they will supply to DaimlerChrysler is RB-1, which is a 1.5 DIN in-dash car navigation system and has not been on the Japanese market. DaimlerChrylser plans to apply the RB-1 to the Pacifica to be introduced this autumn. Alpine's next targets will be Chylser, GM and Ford models.Calsonic Kansei to sell out wire harness businessOn the 16th, Calsonic Kansei announced that they will sell out their automobile wire harness business to Sumitomo Electric Industries and Sumitomo Wiring Systems. Total amount for stock transfer will reach 3.5 billion yen ($27 million, $1=128 yen). As a result, the two companies will gain a strong foothold in the wire harness industry. Calsonic Kansei plans to concentrate more on their major products such as cockpit modules to increase business efficiency. According to an agreement among the three companies, Calsonic Kansei will transfer business rights of wire harness excluding those of modules to Sumitomo Electric while entrusting for development and design of wire harness to Sumitomo Wiring. They also agreed that Sumitomo Wiring will purchase all stocks Calsonic Kansei currently owns in a wire harness joint venture with Hitachi Cable. In the overseas market, Calsonic Kansei will also sell out all stake (46%) in K&S Wiring Systems, a joint venture between Calsonic Kansei and Sumitomo group in Tennessee, to Sumitomo Electric (up 34.6% to 54.6%) and Sumitomo Wiring (up 16.4% to 36.4%). In FY2001, a world share of Sumitomo Electric/Wiring was 11 percent, which is the third largest following Yazaki and Delphi.Alps Electric to produce electric parts in CzechAlps Electric plans to start production of air conditioning panels and door switches at their subsidiary, Alps Electric Czech, which currently produces tuners for TV and VTR and PC keyboards. They have two automobile parts plants in Ireland but automakers' move to the European Continent forced them to shift their production base. They are considering moving production facilities from Japan and Ireland to Czech prior to its startup. In FY2001, sales from automobile electronic parts reached 62 billion yen ($484 million), up 24.5 percent, which is 11.5 percent of their total sales. This is mainly because they started supplying keyless entry systems to Nissan for the March. They plan to achieve 80 billion yen by 2004.IHI receives orders for Cayenne's turbochargersIshikawajima Harima Heavy Industries (IHI) has received orders for turbochargers from Porsche for the first time. Their turbochargers will be applied to the Cayenne, Porsche's first SUV. The model, which will be launched in August, will be equipped with a V8 4.5 liter gasoline engine with twin turbocharger. IHI plans to produce 3,000 units in FY2002 and 10,000 units in FY2003 and export them to Germany. Porsche has been procuring turbochargers from 3K Warner Turbosystems but for their first SUV they have chosen IHI as a supplier.May 16, 2002Honda absorbs NEC's electronic control unit businessOn the 15th, Honda announced that they have reached an agreement with NEC to absorb NEC's electronic control unit division. Honda has fewer electronic affiliates than Toyota and Nissan, and they have been trying to strengthen their electronic control unit business. Through the new agreement, Honda can combine NEC's superiority in communication infrastructure, ITS solutions and LSI into their car electronics business. In their plan, Honda will increase their stake in Tennex, an affiliate company specializing in ABS and EPS systems, while Honda and NEC both will provide monetary support for Tennex, enabling them to renew their company (starting as a new company this autumn). Honda is scheduled to own a stake larger than 50 percent in the new company in order to make them their subsidiary. The new company is expected to start with 300 employees: 100 from Tennex and 200 from NEC's car electronics system division producing ABS, TCS, SRS airbag and EPS systems. Total sales of NEC's car electronics system division reached 22.5 billion yen ($176 million, $1=128 yen) and 60 percent of their sales were gained from Honda.Mazda to stop production of the Familia in EuropeMazda announced on May 15 that they will cancel production of the next Familia in Europe. In line with Ford's move to strengthen business in Asia, they are considering introduction of a new Asian strategy vehicle having the same chassis as the Familia. They plan to concentrate on production of vehicles with shared chassis in order to increase efficiency. In the Ford group, Mazda is expected to take charge of development of C segment platform, which the Familia is categorized in. At the same time, Mazda is putting more energy into production of the 626 (Atenza), including sedan, 5 door and stationwagon, at a joint venture with Ford in North America, which also makes it difficult to manage Familia production in Europe.Mazda achieves profitability in FY2001According to an announcement made by Mazda on the 15th, consolidated operational/ordinary and net income returned to profitability after two years. Their sales also increased by 3.9 percent to 2,095 billion yen ($16 billion). This is mainly due to their aggressive cost reduction measure ÒMillennium PlanÓ in addition to the yen's depreciation. Although domestic sales declined by 11.1 percent to 811 billion yen ($6.3 billion, $1=128 yen) due to a lack of new models, overseas sales, especially in North America, increased by 16.3 percent to 1,284 billion yen ($10 billion). Their operational income was 28.6 billion yen (deficit of 15 billion yen last year) and ordinary income reached 19 billion yen (deficit of 30 billion yen last year). As a result, their net income returned to profitability at 9 billion yen from a deficit of 155 billion yen last year. Unit sales was 288,000 units in Japan (down 13.7 percent) and 660,000 units overseas (up 4.8 percent) (up 15.8% to 347000 units in North America, down 14.3 percent to 150,000 units in Europe and up 5% to 163,000 units in other areas). For FY2003, they expect 7.4 percent increase for sales, 78.6 percent increase for operational income and 92.5 percent increase for ordinary income. Net profits are expected to reach 20 billion yen (up 126.5 percent).Suzuki to make Maruti Udyog their subsidiarySuzuki revealed on the 15th that they will increase their stake in Maruti Udyog, a joint venture with the Indian government, to make the company their subsidiary. This is in response to an announcement made by the government that they will privatize the company. As a result, Suzuki will own over 50 percent stake (up 4 percent) in Maruti Udyog and their consolidated sales will reach 2 trillion yen. Maruti Udyog is the leading Indian company with a sales share of 50 percent in India. They started production of Suzuki vehicles in 1983. Their production is 340,000 units a year and annual sales are 90 billion rupees. They also export vehicles to Europe. They currently produce nine models ranging from 800cc to 1600cc, including the WagonR, Alto and Cultus.Aichi Machine Industry to supply 6 speed MT for the Nissan March and ZAichi Machine Industry was chosen from among four companies that Nissan decided to continue keeping stakes in (the other three are Jatco TransTechnology, Nissan Shatai and Nissan Kohki). Aichi is expected to play an important role in the Nissan group for their CR engines for the March and 6 speed manual transmissions for the Z. Monthly CR engine production is expected to reach 23,000-25,000 units in line with the strong sales of the March. On the other hand, production of CG engines, currently applied to the Cube, will decrease. They also expect that ZG model manual transmissions will expand due to high popularity of the Z in the US. For sales expansion, some of their products are supplied to Renault and further expansion is currently unplanned but only when Nissan and Renault decide to use the same engine. With other automakers, Aichi has started supplying a 6 speed manual transmission to Hyundai and they said that some automakers are now considering adopting their products. Their CVTs have already been adopted for subcompacts of Suzuki and Daihatsu and large scooters by Suzuki. Aichi is now conducting CVT tests for automobiles.Mitsubishi to launch 10 models in three yearsMitsubishi has revealed that in the next three years they will introduce 10 new models for the domestic market. By FY2004 they are scheduled to achieve profitability in Japan and Europe. They plan to focus on new model introductions in Japan and business restructuring for NedCar in Europe. For the European market, they also plan to improve production efficiency at a new engine plant. In FY2001 their sales share increased only in the subcompact market due to the brisk sales of the eK wagon.May 15, 2002Toyota, Nissan and Honda achieve record high in FY2001 profitsAlthough the domestic market has been sluggish, Toyota, Nissan and Honda achieved the highest profits ever in FY2001 (starting in April 2001 and ending in March 2002) and Mitsubishi's income finally returned to profitability. Mazda is also scheduled to achieve profitability in April. These good results are mainly the result of sales expansion in North America coupled with the yen's depreciation as well as procurement cost reduction measures. For FY2001, Toyota's ordinary profits surpassed 1 trillion yen for the first time ever. Toyota and Honda both marked record highs in all sectors (sales, ordinary, operational and net income). Nissan is scheduled to achieve the highest levels ever for operational and net income despite sales declines since they sold out stakes in their 18 affiliate companies.Toyota and Honda each respectively benefited from favorable exchange rate fluctuations by 410 billion yen and 231 billion yen. They also gained 260 billion yen and 43 billion yen from cost improvements. Nissan succeeded in 245 billion yen in cost reductions and gained 147 billion yen from favorable exchange rates, which greatly contributed to their operational income expansion. In North America, operational income of Toyota and Honda jumped by 29.1 percent to 59.8 billion yen and 45.5 percent to 40.2 billion yen. Toyota currently has a 1,450,000 unit production capacity in North America and regards the market as a Òsecond home groundÓ. In Europe, all Japanese automakers' business performance steadily improved and Toyota and Honda are scheduled to achieve profitability in FY2003. In Japan, automakers are trying to stimulate the market by introducing attractive products. In FY2001, new car sales fell by 3.4 percent to 3,979,834 units. Compact car sales are expected to increase in FY2002 due to introduction of new models by Mazda and Mitsubishi in addition to the current popular models, including the Toyota Vitz (Yaris), Honda Fit (Jazz) and Nissan March. However, to stimulate the market, automakers need to release popular models other than compacts. In FY2001, Honda was the only company that showed sales increases in Japan.
Second lines denote FY2002 plans Mazda to strengthen subcompact salesMazda plans to increase the number of dealers handling subcompacts from the current 150 to 500 locations. This is in response to Nissan's entry into the subcompact market, which is expected to create fierce competition. In addition, small car demand has been increasing. Mazda has not been emphasizing subcompact sales because their entire subcompact lineup is made up of OEM models from Suzuki. Last October, they modified financial incentive measures for dealers who sell a certain number of subcompacts.Daihatsu to rent hybrid vehiclesDaihatsu plans to rent subcompact hybrid vehicles to local governments and electric power companies for one year starting this autumn. They are scheduled to accumulate data for 2004 market introductions. The hybrid car, based on the Hijet, is equipped with electronic motors and batteries based on modified Toyota units, and Daihatsu will develop only control technology. Through the tests they are hoping to find ways to reduce sticker price for the new hybrid because subcompact buyers generally attach most importance to price. This year, Daihatsu plans to start public road tests with the Move-based hybrid car. In the subcompact hybrid market, Suzuki has already started public road tests.Fuji Heavy Industries to establish a new company for hybrid batteriesOn the 14th, Fuji Heavy Industries announced that on the 20th they will set up a joint venture with NEC to develop secondary batteries for hybrid vehicles. The total capital amount will reach 490 million yen, and NEC and Fuji Heavy Industries will own 51/49 percent stakes respectively. The new company will be located in NEC Laboratories in Kanagawa prefecture. There will be a total of 21 employees, 12 deployed from NEC and 9 from Fuji Heavy Industries. The new company will modify manganese lithium ion batteries used for mobile phones to be compatible for vehicle use and establish a mass production system within the next three years. Compared to nickel hydrogen batteries, adopted by Toyota and Honda, manganese lithium ion batteries are superior in quality and cost performance for large-scale production. The two companies plan to use their superiority in manganese lithium ion battery development for mobile phones by NEC and systematic technology for these batteries by Fuji Heavy Industries. They will soon complete technology required for mass production. Fuji Heavy Industries has already decided to apply the batteries to models for the 2005 market. They have also started proposing their new products to GM.May 14, 2002Toyota achieves a record high for sales and profitsAccording to a report announced by Toyota for their FY2001 consolidated business performance, their sales, operational/ordinary profits and net income reached the highest level ever for the third consecutive month. Strong sales in North America contributed heavily to these results as well as aggressive cost reduction measures and favorable exchange rates. Their FY2001 consolidated sales increased by 12.5 percent to 15 trillion yen. Global unit sales grew by 4.7 percent to 5,784,917 units (down 4.6 percent to 2,217,002 units in Japan and up 11.4 percent to 3,567,915 units). Their operational profits jumped by 29.1 percent to 1.12 trillion yen and ordinary profits also increased by 14.5 percent to 1.11 trillion yen. As a result, net income reached 616 billion yen, up 30.7 percent. Although they achieved profitability in Japan and North America (around 30 percent), Toyota could not clear deficits in Europe.Independent sales, operational profits and net income also reached the highest level ever. For FY2003, they plan to achieve a 2.8 percent sales increase to 2,280,000 units in Japan, up 5 percent to 1,870,000 units in North America and down 10 percent to 780,000 units for Europe where they will concentrate on preparation for new model introductions. Nissan to set prices for hybrid vehicles this yearNissan plans to set target price for hybrid vehicles this year. This is in response to their plan to expand business in the US where fuel and exhaust regulations are tough. By the end of FY2004 when Plan 180 will end, Nissan is scheduled to release hybrid cars with the minimum production target of 100,000 to 200,000 units since they declared that they will not introduce hybrid vehicles if they can achieve profitability. They have experience at commercializing hybrid vehicles based on the Tino. They plan to use technology accumulated through development of the Tino hybrid to achieve an early introduction. In the hybrid market, Toyota and Honda have been strengthening their lineups and their sales figures in the US are larger than in Japan.
Used car sales in April increaseOn the 13th, JADA announced that used car sales in April increased by 1 percent to 457,135 units. The figure grew for the first time in three months. Used car sales figures are 75 percent higher than new car sales. A lack of trade-ins in addition to many new compact introductions, caused declines in used passenger compact car sales even though used standard passenger sales increased. Used standard cargo vehicle sales jumped because many owners traded in their vehicles and prices of used diesel vehicles sharply declined. However, used compact cargo vehicle sales fell. Used bus sales jumped for the first time in two months.Mitsubishi achieves profitability for consolidated ordinary incomeOn the 13th, Mitsubishi announced that their FY2001 consolidated ordinary income finally returned to profitability from 94 billion yen in deficits to 11.9 billion yen in profits. Although consolidated sales declined by 2.3 percent to 3.2 trillion yen, their aggressive "Turnaround Plan" restructuring measures contributed to profitability in operational, ordinary and net income. Their consolidated global unit sales fell by 2.7 percent to 405,000 units. Their consolidated net income was 11.3 billion yen. Their forecast for FY2002 is up 6.3 percent for sales (3.4 trillion yen) and up 340 percent for net income (38 billion yen), which will be the highest ever. They also plan to introduce new compact cars to achieve 4.1 percent global unit sales.Independent sales of Mitsubishi were 1.9 trillion yen, down 8.1 percent, and net income was a deficit of 70.5 billion yen. Mazda develops new alternatorsMazda has developed a new alternator in cooperation with Mitsubishi Electric which can reduce weight and increase tranquillity. They have modified starter coil structure and succeeded in canceling noise without noise proof material. The new alternator was used for the new MPV, equipped with a 3 liter engine. At the same time, they changed forms of rectifiers, cooling fans and housing to help reduce noise.Sony to develop a next-generation car navigation systemSony has revealed that they will develop a car navigation system which is customizable depending on user's needs. They plan to provide a basic model and users can choose additional functions and specifications. With the new system, they can smoothly adopt new additional functions in accordance with development of multimedia and IT technology.Toyota to postpone introduction of the WiLLToyota has decided to postpone introduction of the WiLL series, which was initially scheduled to be on the market by the end of May. They concluded that they need an additional three months to improve contents of their next-generation information service with GM, called "G-BOOK" and its infrastructure. The next model will be the WiLL VC, the third model of the WiLL series. Toyota plans to target young people who seek unique cars. The model is based on the Vitz (Yaris). Toyota is scheduled to expand dealers handling the new WiLL.May 13, 2002
Nissan to introduce three March-based models by FY2004Nissan has revealed that they will launch three new March-based models by FY2004 for the Japanese market. This autumn the all new Cube and two other new models will appear on the market. They plan to expand small car lineup, which has been popular in Japan, in order to achieve their sales target in a new mid-term business plan, ÒNissan 180Ó. In the new plan, they set a 22.5 percent sales share goal for their target. Nissan's small car lineup was only two models (March and Cube) but they included the MOCO, an OEM subcompact from Suzuki, and plan to add two new March-based models. Through an alliance with Renault, Nissan plans to expand application of the B platform for small cars, which was jointly developed, as a way to achieve both cost reduction and quality improvement. Their new models are expected to have a roomy passenger compartment and generous luggage space. In the small car market, Toyota is focusing on new model development, including the ist and Vitz (Yaris) based models. Mazda and Mitsubishi are developing new chassis to strengthen their small car lineup.Toyota group companies report good business performance in FY2001Toyota group companies announced on May 10 that sales and profits of Denso and Toyota Industries surpassed their record figures for the second consecutive month. Despite Toyota's slow sales, overseas production expansion and new product introductions, including environmentally friendly and safety related products, contributed to the positive results. Denso who expanded sales of new diesel injection systems and ITS related products achieved an 8.3 percent sales increase. They are now concentrating on overseas expansion and started operation of the third European plant (in Czech) for car air conditioning systems. Aisin Seiki also achieved the highest consolidated sales due to the establishment of a new brake company, ADVICS, along with strong sales of car navigation systems and body related products. However, their profits declined in response to cost reduction requests by their customers. They expect that their FY2002 ordinary profits will reach new highs as a result of strong overseas expansion. Toyota Tsusho renewed their record ordinary profits for the second straight month. This is because they expanded business support for overseas parts makers in line with Toyota's overseas expansion and they entered the used parts business in cooperation with a leading used parts company. Sales figures of Toyota Shatai jumped by 41.7 percent, mainly due to strong sales of the Ipsum and Noah/Voxy. Figures for Kanto Auto Works slightly increased because of production start of new Corolla Spacio and Verossa.Unisia Jecs to supply EPS for the Z carUnisia Jecs (UJ) has received orders for electronic power steering (EPS) systems from Mitsubishi for the Z car, a model jointly developed by Mitsubishi and DaimlerChrysler. UJ has been trying to expand sales of EPS and the Z car will be their first model to use UJ's EPS systems. They will supply EPS systems to Mitsubishi's plant in Aichi prefecture. In Europe, where UJ does not have a production base, UJ plans to provide design drawings to ZF, a German maker, and ZF will produce EPS systems for DaimlerChrysler. In Japan, EPS was first produced at the beginning of 1990s for subcompacts and Koyo and Nippon Seiki are the two major EPS companies. UJ, who started development of EPS systems in the mid 1990s, currently supplies hydraulic power steering systems to Nissan. In line with their entry into the Hitachi group, they plan to speed up development of integrated electronic vehicle control systems for steering and brake systems.Hino achieves profitability in FY2001According to a report released by Hino on May 10, their income returned to profitability (8.37 billion yen) from last year's deficit of 13.3 billion yen. Although their domestic sales slightly declined, overseas sales (up 20.8 percent) and OEM production to Toyota (up 20.4 percent) expanded. As a result, they achieved a 7.8 percent sales increase of 759 billion yen. Their operational profits increased by 59.1 percent to 9 billion yen and ordinary profits also increased by 51.2 percent to 4.6 billion yen. Unit sales totaled 33,700 units in Japan (up 0.6 percent) and the export figure was 18,700 units (up 1.5 percent).Nissan Diesel to expand large CNG truck salesNissan Diesel plans to focus on production and sales of large CNG trucks over 8 tons. In the domestic truck market, sales have been sluggish and truck makers are trying to find ways to increase demand by introducing unique products. CNG types are mainly adopted for mid-size trucks. Nissan Diesel produced only a few large trucks. Nissan Diesel has concluded that demand for large CNG trucks will expand due to increasing environmental consciousness. They plan to start mixed production with diesel trucks by adding sub-production lines and they will start providing catalogs this year.May 10, 2002Toyota to establish an integrated brand designToyota has revealed that they will adopt the same design concept for their entire passenger car lineup, excluding Lexus models. They started applying the integrated design with the ist, introduced on May 8. They had been adopting several design concepts due to a large number of passenger models, which make it difficult to create uniqueness of each model. By integrating design, they plan to establish a strong brand image in order to expand sales. Their design concept is "Vibrant claritz", and use the integrated body outline design. For the Lexus, they plan to establish a different design concept as a luxury model.Nissan reveals 180 PlanOn the 9th, Nissan announced a new mid-term business plan "Nissan 180", ending in FY2004. They set global sales target of 3,600,000 units, 100,000 units higher than figure in FY2001, and plan to recover a domestic sale share of 22.5 percent, a figure they had decade ago (6.1 percent in the global market). At the same time, they plan to obtain three places in the top 10 sales ranking in the Japanese market. They plan to allocate 5 percent of total sales for facility investment 4-4.5 percent for R&D. Under Nissan 180, they also declared that they will launch 28 new models in three years. In overseas markets, they plan to achieve a 6.2 percent sales share in the US, the highest figure ever, and a 3.1 percent share in Europe.Nissan announced their consolidated business performance for FY2001 on the same day. Although the number of cars sold worldwide declined by 1.4 percent to 2,597,000, their sales increased by 1.8 percent to 6.2 trillion yen ($48 million, $1=128 yen). The net profits after tax is expected to reach the highest level ever of 372 billion yen ($2.6 billion) and operational profits also jumped by 68 percent to 490 billion yen ($3.8 billion). For FY2002, they expect 6.5 trillion yen ($51 million) for consolidated net sales and 380 billion yen ($3 billion) for net profits. Net automotive debt is expected to decline to 250 billion yen ($2 billion).
According to a report by JAIA, the Honda Fit (picture on the right) returned to the top by defeating the Toyota Corolla (see Sales Ranking in April 2002). Nissan March seized third. A total of seven Toyota models got into the top ten. Honda's Mobilio returned to seventh but the Stream could not stay in the top 10. |
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| Registered car sales in April | ||||
|
- |
April |
Vs |
Total |
vs |
|
Daihatsu |
1,276 | 48.3 | 6,252 | 49.7 |
|
Fuji |
5,594 | 112.0 | 39,876 | 92.4 |
|
Hino |
1,476 | 91.8 | 11,939 | 97.5 |
|
Honda |
43,844 | 109.8 | 207,985 | 120.7 |
|
Isuzu |
3,345 | 92.9 | 19,125 | 87.2 |
|
Mazda |
13,129 | 80.7 | 77,320 | 81.0 |
|
Mitsubishi |
10,400 | 72.8 | 68,558 | 71.1 |
|
Nissan |
48,256 | 104.1 | 265,864 | 94.3 |
|
UD |
455 | 81.1 | 5,792 | 93.9 |
|
Suzuki |
3,235 | 86.8 | 17,071 | 82.7 |
|
Toyota |
115,093 | 95.9 | 585,401 | 93.4 |
|
Import |
19,351 | 103.4 | 89,774 | 97.7 |
|
Total |
265,454 | 97.3 | 1,394,957 | 94.2 |
On May 1, JADA announced new car sales in April declined by 2.7 percent to 265,454 units (table on the right). For April alone, figures did not reach 300,000 units for the fourth consecutive month. This is due to sales slump of trucks (the lowest figure ever since JADA started keeping statistics in 1968). Sales of small trucks sharply declined after the Toyota Noah/Voxy classification shifted to compact passenger cars. Although standard passenger car sales dropped, compact car sales, including the Nissan March and Honda Fit, jumped. Makers who showed increases include Honda with the Fit, Nissan with the March and Fuji Heavy with the Forester. Because Honda achieved a sharp increase, the sales share gap with Nissan narrowed to 1.7 percent. Toyota experienced sales declines due to decreasing sales of their major models, including the Mark II and Crown. Mazda, Mitsubishi, Isuzu and Nissan Diesel achieved the lowest sales figures ever.
| Subcompact car sales in April | ||||
| - | Apr. 2002 | Vs 2001 | Total 2002 | Vs 2001 |
| Suzuki | 45,411 | 101.5 | 208,997 | 100.8 |
| Daihatsu | 37,385 | 94.1 | 185,037 | 95.9 |
| Mitsubishi | 15,106 | 100.6 | 95,355 | 104.8 |
| Subaru | 9,815 | 84.2 | 51,700 | 84.8 |
| Honda | 22,411 | 100.6 | 102,399 | 96.2 |
| Mazda | 2,891 | 104.0 | 16,260 | 114.8 |
| Nissan | 3,961 | - | 3,978 | - |
| Smart | 280 | - | 1,582 | - |
| Other | 684 | 83.8 | ,1242 | 79.5 |
| Total | 137,944 | 100.7 | 666,550 | 98.9 |
GM FCEV experiment succeeds
On the 1st, GM announced that they succeeded in tests of a gasoline reform type FCEV based on the Chevrolet S-10. Automakers have been working hard on developing FCEVs and they have only succeeded in hydrogen and methanol reform fuel types. DaimlerChrylser and Ford are concentrating on methanol reform type in order to expand FCEV recognition, then, they plan on shifting to hydrogen direct injection type. On the other hand, Toyota and GM think that gasoline reform type will be the major candidate in terms of infrastructure although they agree with DaimlerChrsyler and Ford that the hydrogen type has the potential to dominate the market in the long run. According to GM, energy efficiency achieved in the test was 40 percent and CO2 emissions can be halved. Next year they plan to continue using the S-10 based FCEV for tests involving travel distance per charge, efficiency, emissions, and fuel reform characteristics.Suzuki increases sales share with the Chevrolet Cruise
While GM has been experiencing severe sales conditions for the Chevrolet Cruise, a model jointly developed with Suzuki, Suzuki has been increasing sales of the model. The Chevrolet Cruise, introduced in October, is handled by Suzuki for 1.3 liter models and GM for 1.5 liter models. Their initial sales targets are 15,000 units for Suzuki and 5,000 units for GM. Sales by Suzuki are expected to surpass their target, but sales by GM have not increased much and they expect it will be difficult to achieve even 1,000 units. GM has decided close partnerships with Japanese automakers must go beyond OEM model supplies, due in part to their experience in supplying the Cavalier to Toyota. Suzuki, who uses their own sales network, is the only maker involved in tie-ups with GM that showed sales increases. GM also failed in OEM supplies through Opel to Fuji Heavy Industries (Traviq). As a result, Fuji Heavy Industries has decided to participate in development of the successor model to the Traviq, a 4WD vehicle. GM is also scheduled to introduce the Voltz, a model jointly developed with Toyota, this autumn through Toyota dealers.In a contrast to the many ways Japanese makers have benefited from access to the US market, US automakers are still experiencing difficulties gaining a strong sales share in the Japanese market. Building favorable relationships with Japanese makers may be one key to succeeding in the Japanese market.
Mitsubishi Cable Industries to procure wire harnesses from Lear
Mitsubishi Cable Industries and their subsidiary, Ryosei Electro-Circuit Systems plan to start importing wire harnesses from Lear's Phillipine subsidiary this year. After Ryosei checks wire harnesses from Lear, Mitsubishi Cable is scheduled to supply their products to Mitsubishi and other clients. In June, Mitsubishi Cable group companies and Lear agreed on establishing a joint venture in Japan for wire harness sales and technological cooperation. The two companies plan to reorganize their networks to reduce costs and match global procurement policies of automakers. As a part of their plan, Mitsubishi Cable is thinking about using Lear to supply wire harnesses to Mitsubishi Motors in the US, instead of supplying them directly. They also plan to supply parts from their subsidiaries in Indonesia and Thailand to Lear Automotive Philippines. Currently, Lear Automotive Philippines exports wire harnesses to Japan (2 billion yen=$16 million, $1=127 yen), and they also independently supply Mazda, Suzuki and Toyota. As a result, their exports to Japan are expected to reach $160 million by 2004.May 1, 2002
Toyota and Honda strengthen European business
Domestic automakers have started concentrating on achieving profitability in the European market. Toyota and Honda marked the highest ordinary profits ever for the first quarter of 2002. However the two companies are still in a severe condition and the operating ratio of their European plants have been decreasing. To break this situation, Toyota conducted a full model change to the Corolla produced at TMUK and plans to release the new Avensis this year. Toyota is scheduled to return to profitability next year and achieve a 5 percent sales share in 2005. Honda, who just introduced the Jazz (Fit) for the European market, is trying to increase production by starting CRV production at their UK plant and they are proceeding with restructuring sales systems. Nissan is also aggressively conducting business with Renault to achieve profitability this year while Mitsubishi is strengthening ties with DaimlerChrysler for sales systems and Mazda is expanding brand specialized dealers.Nissan cancels exports to Oceania from Thailand
Nissan has decided to stop exporting pickup trucks produced in Thailand to Australia and New Zealand. They currently produce DATSUN at Siam Nissan Automobile (over 20,000 units). Nissan started exporting pickups to these countries in order to keep high operating ratio of their Thailand plant after the monetary crisis in 1997. However, production has been increasing as a result of both recovery in new car demand in Thailand and the introduction of the ASEAN free trade agreement. Although sales of new cars in 2001 were 290,000 units last year, which is about half the peak figure, recovery rate has been speeding up (up 30 percent last year). In addition to these positive aspects, a government plan to increase taxes on pickup trucks may encourage people to buy pickups before it can be implemented.Yamaha Motor to develop a high heat release engine
Yamaha Motor has started developing a new technology to increase heat release ratio for engines. They plan to use a special film tacked between parts normally bolted together, including engine blocks and cylinder heads. In many cases, it is hard to avoid narrow gaps created when parts are bolted. Even if automakers use aluminum parts to reduce weight, they cannot take advantage of high heat release ratio of aluminum. With the new technology, Yamaha plans to reduce the burden on cooling systems while increasing operating efficiency. They also plan to apply the new technology to motorcycle and OEM vehicle engines in order to leap ahead of other makers.Alps Electric to enter the tire pressure monitoring market
Alps Electric has completed development of monitoring systems for tire inflation, which are used in conjunction with run-flat tires. Although they are specialized in parts for on-board units delivered to system suppliers, the new system is a complete unit. Sensor systems send signals through receivers installed in the dashboard to drivers when tire pressure decreases. They expect demand for the new system will expand in line with increasing sales of run-flat tires. In the US, there is speculation that installation of run-flat tires will become mandatory due to increasing accidents caused by incorrect tire pressures. Alps plans to use their superiority in electronic control and communication technologies to compete with other makers. Another company, Pacific Industrial, has developed a system that includes valves and they supply it to Toyota for use in vehicles exported to North America.Renault Japon to strengthen luxury lineup
Renault Japon plans to start full-scale import of luxury vehicles. This year they are scheduled to introduce the Avantime and Laguna and in 2003 they plan to release the VelSatis. In the Japanese import car market, demand for luxury models is high. Their 2001 lineup is mainly compact models and sales were only 2,800 units. They have set a 2002 sales target at 3,600 units, up 28.5 percent, and their long-term target is 30,000 units.(Picture on top: Avantime, below: VelSatis)
Showa to restructure production system in the global market
Showa plans to concentrate aluminum casting production in Asaba, Japan, in order to increase efficiency in line with overseas expansion. Their Asaba plant is currently producing power steering units. They are planning to start production of shock absorbers and power steering in other Asian nations and strengthen their production systems in North America and Europe. In May, Showa will start propeller shaft production with new welding and painting facilities in Canada and increase annual production capacity from the current 30,000 units to 270,000 units. In the UK, they are going to conduct an integrated production of shock absorbers to achieve an 800,000 unit annual production (currently 280,000 units). They plan to establish local production systems which are not affected by exchange rate fluctuation and provide stable supplies to Honda, their major customer. |
