Auto News From Japan - April 2002
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Daily News---April 2002
April 30, 2002Exports figures in FY2001 fallOn the 26th, JAMA announced that vehicle exports in FY2001 (April 2001 to March 2002) declined by 2.9 percent to 4,248,392 units. The figure decreased for the first time in two years, due to sharp declines to Europe and other Asian nations. Total passenger car exports fell by 2.7 percent to 3,641,333 units. While standard passenger exports increased by 2.5 percent, figures for compact cars fell by 10.1 percent. Truck figures decreased, for the fourth consecutive year, by 5.1 percent to 561,991 units. This is because small truck exports plummeted by 24.6 percent in addition to continuous declines for standard trucks. Total exports (calculated in dollars) also declined by 5.2 percent to $82 billion (down 2.8 percent to $62 million for vehicles and down 11.9 percent to $20 billion for
On the same day, JAMA announced overseas production in 2001 (Jan.-Dec.). Figures slightly increased by 0.6 percent to 6,327,405 units. Production in North America and Europe increased while figures in Asia declined due to a large decline in Taiwan despite increases in Thailand and Malaysia. In Europe, production start of Toyota's France plant could not cover large declines by Nissan's UK plant. Overseas production in the fourth quarter of 2001 decreased by 2 percent to 1,526,696 units. Prime Minister decides to use 2003 FCEVs
Daihatsu achieves certificate for ASVDaihatsu has achieved ASV certification (advanced safety vehicle) for a Mira based vehicle. Their ASV is equipped with CCD cameras installed near the windshield and the rear window and a wide-angle rear-view camera. It also has laser radar systems in the front bumper, GPS antennas and various sensors to help drivers operate. Connecting these systems through electronic throttles and brake oil pressure units allows them to operate automatically. With highly sophisticated electronics technologies, distance to front vehicles can be maintained properly and precautions against various driving conditions can be taken including entering curves and changing lanes. When a safety alarm starts, "drive recorders" installed inside the vehicle automatically save pictures of the conditions. Drivers can also check the current driving conditions by car navigation monitors through cameras. Daihatsu has been concentrating on development of safety bodies, "TAF" and safety interior "SOFI". In line with certification from the government, they plan to conduct public road tests for the next three years to achieve an early introduction of ASVs.Mazda to strengthen MPV sales in EuropeMazda has decided to strengthen European sales of the MPV, a minivan. They plan to add a diesel version to double the current sales to 8,500 units a year. Mazda has developed a new 2 liter diesel engine which has a noise level roughly equivalent to gasoline engines and has also cleared Euro4 requirements. By combining commonrail systems and trubochargers, the new diesel engine achieved high levels of fuel efficiency and emissions control. The commonrail system is made by Denso and creates 1,600Pa fuel injection. The new diesel engine will also be applied for the Mazda6 (Atenza) and Premacy.Bosch AJ to sell proportional solenoid valve division to NIDEC TosokNIDEC Tosok announced on the 26th that they have reached an agreement to purchase proportional solenoid valve division from Bosch AJ. Price for the purchase has not been revealed. NIDEC Tosok currently procures the units from Bosch AJ and builds them into CVT control valve assemblies for Fuji Heavy Industries. NIDEC plans to set production facilities for control valve assemblies at their subsidiary in Vietnam and supply 20,000 units to Fuji Heavy Industries.April 26, 2002
FY2001 production falls for the first time in two yearsOn April 25, JAMA announced FY2001 domestic car production. Total figures fell by 2.4 percent to 9,807,492 units due to declines in both domestic sales and exports. This is the first time in two years that car production could not surpass 10 million units. However, production of standard passenger cars and subcompacts reached the highest level ever due to high popularity of minivans. Total passenger car production decreased by 1.6 percent to 8,162,063 units. Although standard passenger car production increased, for the third consecutive year, by 4.7 percent to 3,510,631 units, compact car production dropped by 8.3 percent to 3,355,879 units due to expansion in overseas production. New model introductions brought up subcompact production, for four years in a row, by 1 percent to 1,295,553 units. Truck production fell for the seventh consecutive month and reached the second lowest ever since JAMA started statistics in 1966 (down 1.5 percent to 611,106 units for standard trucks, down 15.3 percent to 416,067 units for small trucks and down 3.8 percent to 558,738 units). On the other hand, bus production increased by 9 percent to 59,518 units.For motorcycle production, figures fell for the first time in two years to 2,255,249 units. Sales of vehicles for handicapped people continue to growAccording to a report by JAMA for sales of vehicles for handicapped people, figures jumped by 16.5 percent to 33,784 units. Since starting statistics in 1992, sales have been steadily growing. This is due to recent government moves to implement several regulations for nursing car systems and barrier-free laws in addition to automaker's aggressive introductions of these vehicles. Subcompacts accounted for 48.3 percent (18,080 units). Sharp increases in bus sales (up 26.1 percent to 3,698 units) were backed by new barrier-free laws imposed on makers requiring them to apply low floors and improve slope locations for buses used for public transportation. Compact vehicle sales also increased by 7 percent to 22,206 units.Honda to include FCEV repair and maintenance fees in vehicle pricesHonda has decided to minimize repair and maintenance fees for FCEVs and include them in vehicle prices. They plan to introduce a limited three-year run of the first FCEV for fleet use starting next year. Because this will be the first commercialized FCEV, it is hard to set prices for repair and maintenance fees, especially for electric parts. They plan to lessen burdens on users and encourage users to bring in their vehicles by providing packages including these fees while accumulating know-how for full-scale commercialization of FCEVs. The first FCEV, based on the FCX, is a four-seater vehicle with a reasonable amount of baggage space.Nissan to propose application of safety systems for subcompacts to SuzukiNissan plans to facilitate sharing safety systems with Suzuki for subcompacts. Nissan has started sales of an OEM subcompact (the MOCO) from Suzuki. By sharing systems, they plan to reduce costs. Nissan has revealed a plan to apply active headrests for their entire domestic passenger lineup by FY2004 and curtain airbags by 2005. They think it is necessary to expand safety systems also for subcompacts.PAG Japan and PAG Import merger should strengthen Japanese businessAs of May 1, PAG Japan and PAG Import are scheduled to merge and consolidate import and sales business of Jaguar, Land Rover and Volvo models. The two companies and Ford Japan have the same management functions while the three companies have been maintaining independent import business. As a result of the merger, Ford Japan and PAG Import will be in charge of imports of Ford models. However, they plan to separately conduct sales activities, marketing and quality control.DC Japan launches the new CLKOn the 25th, DaimlerChrysler Japan introduced full model changes to the CLK (CLK230 with a 2.6 liter engine and 320 with a 3.2 liter engine) for the first time in five years. The new models have larger body and newly developed suspensions while minimizing weight increases. Sticker prices are 5,900,000 yen for the CLK240 (right hand drive only) and 7,200,000 yen for the CLK320.JIK develops casting simulation systemsJIK, a parts maker in the Isuzu group, has developed a casting simulation system and plans to adopt it for all their plants, including subsidiaries. They have digitized mold design data, which is heavily depended on by skilled engineers, and are using this data to develop new systems so that young engineers can also contribute to increased efficiency. They also plan to combine casting simulations with 3D CAD systems in the next few years. They hope it will reduce costs while improving quality. Their simulation system can increase yield ratio at outlets and flow path for melted material by computer simulation.April 25, 2002Nissan plans a sharp sales increase in North AmericaNissan has revealed their concrete sales targets in a new mid-term plan, N180, ending in 2005. After achieving three-year targets in NRP (Revival Plan targeting FY2002) in two years, they have decided to start a new business plan this fiscal year. Compared to figures in FY2001, they intend to increase sales from 973,000 units to 1,300,000 units in North America (including Mexico), from 470,000 units to 570,000 units in Europe, and in other areas they plan to add 300,000 units (China, South East Asia South America and Africa). To achieve these sales targets, they need annual growth rates of 5 percent in Europe, 7 percent in North America and 10 percent in Japan. These bold decisions are based on their plans to introduce about 30 new models in the next four years while streamlining dealer operation.Honda to include front offset collision tests for FCEVsHonda plans to conduct front offset collision tests at speed of 64 km/h for 2003 FCEVs. In the domestic safety standards, front offset collision tests are not required. However, they are included in assessment tests by the Ministry of Land, Infrastructure and Transport and European and US assessment tests also contain front offset tests. Honda has carried out FCEV front and rear collision tests (with the FCX-V5) at 55km/h for the first time in the world. In the tests, they have confirmed high passenger protection safety during front tests and no hydrogen leakage from the high pressure tank. With the FCX-V5, they plan to start public road tests next month and include side collision and front offset collision tests. They adopted collision safety body ÒG-CONÓ to their current lineup and plan to use it for the FCX-V5.Mitsubishi to use DC's sales network in South AfricaThis year, Mitsubishi plans to start sales of mid-size trucks through DaimlerChrysler group's Freightliner sales network in South Africa. They have already started a small truck sales (Canter) alliance in Europe, including England, France, Italy and Poland. They will soon start sales in Sweden. Their total annual sales target in the five countries is 3,000 units. Freightliner specializes in large trucks (class 8) while Mitsubishi is good at small and mid-size trucks. Mitsubishi is also proceeding with environmental technology development with DaimlerChrysler. In South Africa, they have begun assembling the Canter and plan to double their initial sales target of 300 units by starting mid-size trucks.Imasen Electric Industrial to supply seat adjusters to Honda in ChinaImasen Electric Industrial has received orders for passenger seat adjusters for all passenger cars produced at a Honda's Guangzhou plant in China. Honda has analyzed competitiveness of Imasen and Johnson Controls (JCI), their long-term supplier, and chosen Imasen for their high cost and quality competitiveness. Imasen Electric is now constructing a new plant in Guangzhou to use as a main plant for Honda and plans to start operation in 2003. Guangzou Honda Automobile currently produces the Accord and a Fit-based model and this month they started production of the Odyssey. Their production is expected to expand in China. Sales target of the Imasen's new Chinese plant is 300 million yen ($2.3 million, $1=130 yen) in 2003 and 1.6 billion yen ($12 million). They plan to supply 70 percent of their products to Honda and 30 percent for exports to Japan.Pioneer to expand Chinese productionPioneer, the top aftermarket car navigation system maker, is expanding production in China. They have commercialized HDD car navigation systems and introduced low-price DVD car navigation systems (150,000 yen = $1,154) ahead of other makers. In order to further increase competitiveness, in China they plan to produce electronic parts (liquid display and semiconductors), which account for 60 percent of total car navigation development costs, and export them to Japan. In terms of car navigation system production, they are now proceeding with production of a part of map data input but they have concluded that it is difficult to achieve stable shipment to Japan. Pioneer is also working with new technology development for car navigation systems, including ITS and entertainment functions (such as MP3 recording). For products produced in Thailand targeting the Japanese market, they will add 1DIN CD and MD audio players and provide them at below 50,000 yen ($385). According to Pioneer, they plan to expand procurement in China and Thailand while closely watching exchange rate fluctuations.April 24, 2002Five large automakers reveal their FY2001 business performanceOn April 23, five domestic automakers announced sales, production and export figures for FY2001 (starting in April 2001 and ending in March 2002). Honda was the only company that showed increases in domestic sales and production. For exports, makers who achieved increases for North American market showed good performance despite increasing overseas production among automakers. Global production of Honda jumped and figures for Toyota slightly increased.)(See table and details for FY2001 Business Performance) Toyota and Honda to reduce diesel lineupToyota and Honda plan to review their diesel lineup for the domestic market. The two companies are scheduled to cancel their diesel lineup starting with minivans and set only gasoline engines from full model changes to be introduced after May. This is in response to new exhaust regulations, which emphasize PM emissions from diesel vehicles. Nissan has been applying 3 liter diesel turbocharged engines (accounting for 40 percent) and 3.5 liter gasoline engines for the Elgrand. For the new Elgrand, they plan to only apply the gasoline engine (3.5 liter V6). Toyota also plans to stop application of diesel engines for the Regius/Grand Hiace and use 3.0 and 2.4 liter gasoline engines from May (the name of the model will be also changed). Automakers expect that demand for diesel vehicles will decrease as environmental consciousness increases and NOx PM regulations become more severe. In contrast, European regulations attach importance on CO2 emissions and as a result, European sales of diesel vehicles have been increasing. Therefore, Japanese automakers have to develop different strategies for Europe and Japan.Honda launches export of the CR-VFord, Jaguar, Land Rover displayed at the first joint showroom in JapanFord Japan, PAG Japan and PAG Import announced on the 23rd that they will open joint showrooms in Chiba prefecture on May 1. This is the first time for the three brands to be displayed at the same space. In January, Ford group companies in Japan consolidated common business into PAG Japan. They have also been facilitating common ownership for dealerships.Mazda succeeds in noise reduction for a new engineAs a part of quality improvement, Mazda has developed a new method to reduce engine noise. They analyze noise pattern during driving tests and use computer simulations to confirm which parts are causing noise. They have succeeded in shortening development time and increasing competitiveness with the new method. They started adopting this method with the newly developed 4 cylinder engine (MZR).Mitsubishi Cable Industries and Lear form a comprehensive business allianceOn the 23rd, Mitsubishi Cable Industries and Lear, a leading parts maker in the US, announced that they signed a contract for comprehensive business alliance, including establishment of joint ventures for wire harnesses. They plan to set up a new company in June for sales and technological strategy for the Japanese market. They also plan to consolidate their wire business in Japan over the long run. The new company will provide wire harness technology and information to Nissan and Mitsubishi in order to expand sales to their next-generation world strategy cars. Total capital amount will reach 60 million yen ($0.46 million, $1=130 yen). Lear will pay 50 percent while Mitsubishi Cable Industries and their subsidiary (Ryosei Electro-Circuit Systems) will pay 25 percent each. Their sales target in 2005 is 12 billion yen ($92 million). In FY2001 wire harness sales of Mitsubishi Cable were about 31 billion yen while Lear was the fourth largest in the world wire harness industry (about 270 billion yen). When combining wire business of the two companies, they will be the third largest, surpassing the Sumitomo group and following Yazaki and Delphi.April 23, 2002
Toyota achieves 100,000 sales for HEVsOn April 22, Toyota announced that sales of their HEVs reached 103,000 units on the global market as of the end of March. Since introduction of the Coaster Hybrid in 1997, they have released the Prius, their first large-scale production model, Crown Hybrid and Estima Hybrid. According to research by Toyota, their HEV sales account for about 90 percent of total sales in the global market. In July 2000, they started exporting the Prius to the North American market and now they sell the model in over 20 different countries. During that time, Toyota has developed and commercialized several hybrid systems, including THS, THS-C (with electronic control 4WD system) and THS-M (Mild Hybrid). Sales for the Prius are 89,091 units (58,594 units in Japan and 30,497 units overseas). Figures are 11,762 units for the Estima Hybrid 2,094 units for the Crown Hybrid. They have set a 2005 annual production target of 300,000 units.(Pictures on the right: Prius (top), Estima Hybrid, Crown Royal Hybrid) Mazda MZR engine application plans revealedMazda and Ford have completed a plan for MZR, Mazda's inline 4 cylinder gasoline engine. By 2004, Mazda plans to achieve an annual production of 425,000 units at their domestic plants while Ford is scheduled to produce 325,000 units each at Dearborn and Mexico plants and 425,000 units at their Valencia plant. As a result their total production is expected to reach 1,500,000 units in 2004. They have applied the engine to the MPV and plan to adopt it for the Atenza (Mazda6). Mazda also plans to expand its application to their C and D class models. Ford is planning to produce total of 1,075,000 units at three plants and shift all their 1.8 to 2.5 liter engines to MZR. They have already used the engine for the Mondeo and plan to expand to Volvo and Land Rover.Mazda twisted around by Ford's decisionsMazda has announced their new President Lewis Booth replacing Mark Field who will ascend one of the top positions in Ford. Mr. Lewis Booth is the fourth Mazda president from Ford. Mazda has been recovering with their restructuring plan (Millennium Plan) aggressively conducted by Mark Field and their business operations returned to profitability in FY2001. On the other hand, Ford's profits have plummeted since Bridgestone Firestone scandals. Ford has decided to single out Mark Field to take an important position as vice president of PAG. However, the Millennium Plan still has halfway to go. Mazda has not started establishing a strong brand image and has been putting off new model introductions as a result of decision delays over platform strategy in the Ford group.Daihatsu achieves high ratio for ULEVsAOn the 22nd, Daihatsu announced that 43 percent of their subcompact passenger cars are certified as ULEVs. The figure was 3 percent higher than their initial target. In 2002, they plan to achieve 50 percent to strengthen their clean image. Last October, Daihatsu introduced five UELVs, putting them ahead of other makers thanks in part to newly developed catalysts which achieved both high performance and low costs.Nissan begins pickup assembly in BrazilNissan revealed on April 22 that they started production of the Frontier, a pickup, at a Renault plant (Curitiba LCV) in Brazil. This is the first Nissan vehicle to be produced at a Renault plant. They moved up the date by one month for production start of the Frontier. The Curitiba LCV was established in 2002 and started production of the Master Van. In 2002, they plan to manufacture 2,500 Master Vans and 4,500 Frontiers. Nissan expects that this will create a strong foothold in Brazil.JAMA reveals recent trends for passenger carsAccording to a report for FY2001 passenger car industry trend by JAMA, 79 percent of households own a car, which slightly increased from previous year while those with low income reduced slightly. The survey was conducted from August 20 to September 4, 2001 (5,447 households). The number of owners for bonnet wagons (station wagons, three-row minivans and high wagons) and subcompacts increased while three-box sedans declined. The number of women drivers and people over 50 has been increasing. Owners of more than one vehicle account for 31.2 percent and many of them have RVs. Ownership period also became longer (average of 6.1 years for those purchasing new cars). Increasing number of buyers attached importance to the application of airbags, ABS and safety bodies while buyers attached less importance to clean technology which tends to increase prices. In terms of green preferential taxing, 62 percent of respondents are willing to purchase vehicles subjected to the taxing system while only 8 percent said they plan to buy those vehicles.April 22, 2002Mazda Atenza to obtain two starts for emission regulationsMazda has revealed that they will achieve two stars (50 percent lower hazardous emissions than regulated levels) for the Atenza (Mazda6). The Atenza, a successor to the Capella which will be introduced on May 20, will be equipped with a newly developed engine, MZR, an all aluminum inline 4 cylinder engine. They have already adopted the MZR engine for the MPV (introduced this month) but its heavy body and their high emphasis on torque performance hindered the MPV's ability to achieve two stars. For the Atenza, Mazda has modified the compression ratio and improved valve timing control systems. The MZR engines may also be applied to models in the Ford group. They plan to produce 1,500,000 units annually at four different plants around the world. Mazda is scheduled to expand its application to new models, including the new Demio, a small car.Unisia Jecs to shift shock absorber production to TokicoHitachi, Unisia Jecs and Tokico are discussing the possibility of shifting Unisia Jecs shock absorber production to Tokico. Tokico is the second largest domestic shock absorber company following Kayaba, accounting for 40 percent of consolidated sales (120 billion yen=$0.9 billion, $1=130 yen), and has a tie-up with Tenneco Automotive, the second largest shock absorber company in the global market. By absorbing UJ's business into Tokico, they plan to increase business efficiency in the group and at the same time they will strengthen development of next-generation products, including corner modules. Tokico has been expanding overseas business and has plans in the US, Thailand and China. On the other hand, UJ, the fourth largest in the domestic market, only has a domestic plant and lags behind in the global market. In line with Hitachi's decision to make UJ their 100 percent subsidiary, the Hitachi group companies have started organizing work allocations (UJ will change their company name to Unisia Automotive in October). UJ's current clients include Nissan, Mitsubishi and Mazda while Tokico's major clients are Toyota group companies and Ford.Honda to strengthen safety training systems overseasHonda plans to facilitate traffic safety training programs overseas. They are constructing a driving training center in Indonesia and they also plan to set one up in China. They currently have 20 centers overseas (the US, Thailand and Singapore), which adopt driving simulators for actual driving. They are also strengthening function of their centers in countries where they have production bases and they are now developing traffic software connecting driving courses and driving simulators. Their training centers provide safety training to corporate/private drivers and driving trainers. They intend to improve their image by strengthening safety programs.Mahle Tennex conducts feasibility study in ChinaMahle Tennex has started feasibility study for oil/air filter production in China. By mid 2002 they plan to start preparation for new plant construction. Their products are scheduled for supply to local makers and Japanese automakers in China. Their major candidate for a new plant site is the Southern coastal area, based on the availability of existing infrastructure. In China, there are growing opportunities for new business chances: Nissan's plans to form a tie with Donfeng Automobile Group and production expansion of passenger cars by Honda (Guangzhou), their major clients. They also plan to export products to Japan to respond to automaker's request to reduce costs. Since they became a subsidiary of the Mahle group, they are considering using their seven Chinese plants to bring synergy.Audi Japan forecasts over 10,000 sales in 2002Audi Japan has announced that their 2002 sales are expected to surpass 10,000 units for the first time in five years. Total sales from January to March reached 3,030 units, double last year's figure. They have been organizing their sales network, including increasing the number for brand specialized dealers, after cancellation of their conventional sales system to display Audi and Volkswagen at the same showrooms. As a result, their sales in 2001 jumped by 11.6 percent to 8,127 units. They have set a long-term sales target of 20,000 units annually. In 2003 they plan to sell 12,000 units and in 2005 they plan to increase the number to 16,000 units. To achieve their goal, they are scheduled to introduce full model changes to the A8 Series in 2003, and A3 Series in 2004.Toyota introduces a new brand for customized partsOn the 19th, Toyota announced that they will start a new brand for customized parts for their luxury lineup. The name of the brand is T-Tune Selection. They will set a guarantee system (20,000km/year) and unique service to differentiate their brand from other accessory makers. They plan to lure young people with the new brand. T-Tune Selection will include three brands (Modellista, TRD, Toms) and Toyota's genuine sports parts. Users can select any customization level from one point to full modifications. For the time being, they plan to target five models, the Celsior, Crown Athlete/Estate, Soarer and Brevis and then expand to RVs and minivans.April 19, 2002Mazda to set a diesel version to the Premacy in EuropeMazda has revealed that they will introduce the Premacy equipped with a newly developed 2 liter diesel engine for the European market. In Europe, sales for diesel vehicles have been increasing and in some countries they account for over 50 percent of total sales. The new diesel engine is commonrail fuel injection type and cleared the Euro4. Mazda intends to increase European sales by introducing diesel models. The Premacy is a seven seater minivan and they export around 2,000 units to Europe. In line with minor changes to the Premacy, they plan to increase sales ratio for the diesel version to 20-30 percent. They also plan to adopt the new engine for the Atenza (Mazda6) in May and the MPV this summer for the European market.Isuzu to stop procurement of crankcases from overseas makersIsuzu plans to shift procurement of crankcases from overseas to a domestic maker. This is due to yen's appreciation and increasing competition between domestic parts makers. They have been procuring crankcases from Brazil and other countries in order to reduce costs. However, Isuzu's restructuring plan, V Plan, has forced parts makers to move forward with aggressive cost reduction and their crankcase maker has finally achieved high cost competitiveness equivalent to overseas makers. The crankcase maker will be JIK Material, a casting parts maker, and they are scheduled to supply 100 tons per month.Toyota establishes a MT joint venture in IndiaOn the 17th, Toyota announced that they set up a joint venture for manual transmissions with a local company, KSL. The new company, called Toyota Kirloskar Auto Parts Private Ltd., is scheduled to start operation in June 2004 and produce manual transmissions for foreign markets. Their initial capital amount is 100,000 rupees (260,000 yen) and they plan to increase the amount to 3,375 million rupees (8.8 billion yen). After the completion of the capital increase, Toyota will own a 64 percent stake and Toyota Industries will own a 26 percent while KSL will have a 10 percent stake. KSL is currently producing accelerators and propeller shafts for the Clios.Majority of parts makers see future grimAccording to a report "Parts maker's business vision for the 21th century" by Japan Federation of Auto Parts Sales Association, 51% percent of auto parts sales companies said that their business future looks grim while only 7 percent said their business is going upward. In the last decade, 42 percent of auto parts sales companies experienced sales declines. When business size is smaller, sales declines become larger. Seventy three percent of companies with over 100 million yen in sales said they achieved 10 percent sales increases and 60 percent of them have succeeded in realizing over 10 percent increases in gross profits. On the other hand, for companies with below 100 million yen sales, 53 percent experienced over a 10 percent sales decline and 34 percent suffered from over a 10 percent drop in gross profits. To the question about business mergers and purchases, 57 percent of the companies said restructuring in the auto sales industry is necessary and mergers or purchases are an efficient means for achieving successful restructuring. Twenty-nine percent think mergers and purchases will result in negative affects and create distinctive "winners and losers". Twenty-nine percent of large companies (with over 1 billion yen in sales) responded that they are willing to purchase other companies, while small companies (with less than 100 million yen) said they are thinking about selling their companies.In the report, 65 percent of companies responded that they are working hard with business restructuring to achieve high efficiency. However, only 24 percent said that their efforts bore fruit and 40 percent think their efforts could not bring good results. For those with over 600 million yen in sales, their business restructuring measures are successful but those with smaller sales experienced tougher conditions. In terms of measures for restructuring and efficiency improvements, companies attach most importance to inventory adjustment (85%) followed by improvements in purchasing conditions (52%) and reduction in transportation and procurement costs (47%). Fifty two percent of companies are putting more emphasis on profits than sales while 20 percent are concentrating on sales increases. For business deals, 41 percent think they would like to expand their client base while 26 percent plan to reduce the current number of clients. Seven companies establish a car sharing business companyOrix, Suzuki, NEC, Aioi Insurance and their related companies announced on the 18th that they have established a new company, CEV Sharing, for car sharing business. In Japan, Association of Electronic Technology for Automobile Traffic & Driving (JSK), Yokohama and Inagi government have been conducting car sharing experiments supported by the Ministry of Economy, Trade and Industry and NEDO. The new company will provide maintenance service for car sharing operation. Therefore, anyone who wishes to enter the car sharing industry can start business only by obtaining their maintenance software through the internet. Maintenance fee per vehicle will be 15,000 yen ($115, $1=130 yen). The CEV Sharing has already received orders from companies participating in the experiment conducted by Yokohama government.April 18, 2002Toyota dealer shows the top sales in the USOn the 16th, Toyota announced that their sales per dealer in the US reached 1,264 units in 2001 and achieved top sales in the US. The figure was 85 units higher than their previous level. Lexus captured the second with 1,061 units per dealer. Toyota dominated the top two for the third consecutive month. In the US, they have 1,200 dealers for Toyota models and 196 for Lexus models. Honda was the third with 1,038 units. This is based on research by Automotive News. Average sales figure per dealer in the US was 488 units in 2001.Hino to achieve a 20 percent development time reductionHino has decided to shorten development period from the current 25 months to 20 months by aggressively adopting digital design. This is aimed at responding to more severe environmental protection regulations. For trucks, the national government has revealed that they will implement tougher exhaust regulations in 2003 and 2005, in addition, local governments have started announcing their own regulations, including diesel vehicle regulations in Tokyo. These regulations are expected to contribute to truck sales increases. To deal with these government moves, truck makers are forced to develop new environmentally friendly models. Hino plans to catch up with various environmental protection regulations by shortening development time. They are scheduled to focus on reduction of mockup production costs and procedures for modifications with computers.Yazaki to strengthen Asian strategyYazaki, a leading wire harness company, plans to speed up their Asian strategy and expand sales in Europe. They are scheduled to establish nine additional plants in South East Asia to shift domestic production (three in Indonesia, two in China and two in Vietnam). This is in response to automaker's request to reduce parts costs. In the domestic market, despite production shifts to South East Asia, they plan to maintain the current labor force by introducing new production in automotive, wire and gas fields. They also plan to concentrate on new fields, including nursing care and recycling. In the automotive industry, they plan to concentrate on optical communication for on-board LAN connecting audio units, car navigation systems, mobile phones and air conditioning systems. Yazaki has already supplied their optical cables for the Mercedes Benz SLK and Jaguar D2B. They are now working on commercialization of MOST systems. Through cooperation with Siemens, last year they established three joint ventures for next-generation wire harnesses which will be supplied to BMW, Renault and Ford.Denso to produce commonrail systems in Thailand and HungaryOn the 17th, Denso announced that they will start producing commonrail systems for next-generation diesel engine fuel injection systems in Thailand and Hungary. Total investment is expected to reach 7 billion yen ($53 million, $1=131 yen) for each plant. This is due to increasing demand of common rail systems to keep up with stricter exhaust regulations. Commonrail systems to be produced at the two plants have marked the highest pressure of 1,800 Pa while the current air pressure is 1,450 Pa. Their Thailand plant (Siam Denso Manufacturing), established this February, will start production by using a plant of Denso Thailand, and in June 2003 they will construct a new plant to add injection pump production facilities in order to establish an integrated production system with production capacity of 250,000. At Denso Manufacturing Hungary, they will soon construct a new assembly line and start production in April 2003. In 2005 they plan for 300,000 unit production.Ford Japan tries to strengthen their brand imageSince Ford canceled sales of sister models of Mazda and shifted their brand position in Japan, they have been concentrating on strengthening their brand image in Japan. However, their sales have not increased much (around 10,000 units). They are now trying to differentiate their brand image from other import cars by emphasizing their strong points (being good at trucks and providing reasonably priced cars). Therefore, they plan to focus on sales of the Explorer, Focus and Mondeo. They also plan to add the Mustang and Thunderbird to their Japanese lineup. For the time being, they are targeting a 10 percent share in the import car market and in the first quarter of FY2002 they plan to achieve profitability at their direct controlled dealers.BMW 7 Series shows brisk salesBMW has revealed that sales of the new 7 Series introduced on 13th reached 1,000 units. Their initial annual target is 4,000 units and this is first time for them to achieve 1,000 units in this short period. They currently introduce 3.5 liter and 4.5 liter models and they plan to add 6 liter 12 cylinder engine model this year. After announcement at the 35th Tokyo Motor Show, they have received orders for about 900 units and the first two days of its introduction (April 13 and 14) they got 100 orders. Most of the orders are from ex-owners of BMWs.April 17, 2002Nissan develops 1.6 liter gasoline engine for the European marketNissan plans to develop a new 1.6 liter gasoline engine for 2003 models in order to strengthen European sales. They have completed development of next generation engines that are larger than 1.8 liter and smaller than 1.4 liter. The newly developed 1.6 liter engines are scheduled to be used for the Almera and Micra (March). However, they determined there was a need to develop a new engine to meet tougher fuel regulations and improve driving performance. They are also aiming at adding luxury versions to small models and equipped them with the new 1.6 liter engine.Mazda to achieve profitability in FY2001On the 16th, Mazda announced that they achieved profitability in FY2001 without new models. They have not introduced a new model for more than one year since the Tribute, a model jointly developed with Ford. Restructuring measure, Millennium Plan, and favorable exchange rate fluctuations all contributed to their success. Another, although less influential, factore was a new personnel training program called Mazda Business Leader Development (MBLD). This year, Mazda plans to introduce full model changes to their four major vehicles, including the MPV with a newly developed engine and Demio, for the domestic market. They also hope that introduction of the Atenza (Mazda6) will help aggressively promote domestic sales. Mazda introduced the new MPV on the 16th. The model is equipped with a new engine "MZR", an inline 4 cylinder engine. For the first time, they adopted a 5 speed automatic transmission for a V6 engine model. The last MPV was introduced in June 1999 and was equipped with 2 liter inline 4 cylinder engine and 2.5 liter V6 engine. They enlarged the size to 2.3 and 3 liter to create high driving performance. For the previous model, they used Ford's 4 cylinder engine, but since Mazda has become a core maker for 4 cylinder engine in the Ford group, they used their own engine for the current model (for the first time). Mazda's 4 cylinder engines have already been adopted to the Ford Mondeo. Their monthly sales target is 4,000 units. In terms of environmental friendliness, the new MPV with an inline 4 cylinder engine achieved clean emission levels 25 percent lower than figures stipulated in the latest regulations. They also cleared 2010 fuel economy standards. The model is equipped with electronic controls for both slide doors for the first time for a minivan/one-box vehicle.HEVs spread as general public vehiclesAccording to a government plan about the number of clean cars adopted by, or soon to be adopted by, government agencies, hybrid vehicles account for about 60 percent, equivalent to 4,180 units. The plan is targeting the end of 2004. This is due to HEV's high usability, which is equal to gasoline vehicles. The Environment Agency has said that by the end of FY2001 total number of clean vehicles owned by governments was 1,329 units, only 19 percent of their initial plan. In FY2004 the government plans to complete the shift to clean vehicles.
Continental Teves to supply ABS to Mazda and MitsubishiContinental Teves (CTC), a joint venture between Continental (Germany) and Nisshinbo Industries, plans to construct a new ABS production line by investing 1 billion yen ($7.6 million, $1=131 yen). The new line is scheduled to start operation next spring with an expected annual production capacity of 500,000 units. They plan to produce "MK70", a low cost ABS system for models below 2 liter. The systems will also be adopted for ESP (Electronic Stability Program) models. They have already received orders from Mazda and Mitsubishi and the two companies are planning to expand procurement from CTC. For the time being, they plan to produce 500,000 HCUs, consisting of valves, pumps and motors. The electronic parts division of Continental will supply ECUs to CTC and NaganoJRC will be responsible for ABS sensors. In the Continental group, CTC is in charge of brake production in Japan and Korea. With the introduction of MK70, they plan to beat Advics, Bosch and Nissin Kogyo to expand sales share of ABS systems.April 16, 2002Honda Aims at Marketing a High-Mileage FCEVHonda is planning to market a high-mileage FCEV with a range of 350-400 km by the end of 2003. High mileage FCEV automobiles are expected to become more common in the market as their range increases to levels that are competitive with standard power sources such as gasoline and diesel internal combustion engines. Honda's method involves an expanded capacity high-pressure fuel tank and a means for injecting the fuel directly into the vehicle without the need for a converter.Nissan Announces Safety Equipment Adoption PlanOn the 15th Nissan Motor announced a plan to adopt safety equipment aimed at greater reinforcement and improved safety performance for fiscal 2005. The new equipment features an "active headrest" which reduces impact to the cervix, the main cause of compound injuries in rear-end collisions. The standard will be adopted for all passenger cars and RVs by the 2004 fiscal year and will be expanded to include commercial cars of 2.8 tons or less in fiscal 2005.Adoption of the new standard will enhance Nissan's image as a manufacturer of safe vehicles and should result in increased sales across their entire product line.Hino to Market Scania TractorsHino has acquired rights to market large-scale specification tractors by Scania and will begin offering them in 2004. They are taking steps to reinforce their after-sales service infrastructure to support the newly acquired distribution rights. Beginning in March this year, Hino and Scania have been working together to find a way to bring about this agreement. The first step in this cooperation was for Hino to begin domestic marketing of a large-scale Scania trailer under the Hino brand name.April 12, 2002Mitsubishi to adopt low price DPFMitsubishi plans to apply low price DPF systems for small trucks to clear the 2003 new short-term exhaust regulations. In the new regulations, allowable levels for PM emissions will be tougher. DPF systems can greatly decrease PM volumes. Current DPF units prices for small trucks are around 300,000 yen. Mitsubishi plans to lower the price to 100,000 yen to reduce burden on users. They plan to start with small trucks because they usually operate at low engine speeds, which makes it difficult to conduct smooth combustion. After completing development for small trucks, they are scheduled to expand applications to larger trucks by using basic parts. They intend to bring up sluggish sales of trucks by early introductions of low-price DPF units Mazda revises FY2001 financial results upwardOn the 11th, Mazda announced that they revised their FY2001 financial forecasts upward by 7.2 billion yen to 8.5 billion yen for consolidated net profits. They also revised their independent/consolidated sales, operational and ordinary profits. They said that this is due to yen's depreciation and their aggressive cost reduction measures. Consolidated sales are expected to reach 2,094 billion yen (up 4 billion yen from their initial forecasts) an operational and ordinary profits are 28 billion yen (up 4 billion yen) and 18.5 billion yen (up 16.5 billion yen). As a result, their net profits will return to profitability (a largest jump ever by 163.3 billion yen from previous year). Their independent sales are also expected to increase by 4 billion yen to 1,364 billion yen and net profits will be up 2 billion yen to 13 billion yen. However, consolidated sales of vehicles did not reach their previous forecasts by 2,000 units (948,000 units in total) due to sluggish sales in the domestic market. This year, they expect further sales increases due to the introduction of the Atenza (Mazda 6) and other new models.Honda Engineering develops next generation solar batteriesOn the 11th, Honda announced that Honda Engineering, their subsidiary, has developed next-generation thin film solar batteries and technologies for mass production. Honda Engineering uses copper, iridium, gallium, selenic for films instead of silicon and reduced energy consumption by 1/5. At the same time, they achieved the highest conversion ratio for a thin film solar battery, which helps lower power generation costs by 60 percent. They said that with the newly developed solar batteries they can provide lower energy fees by about 4 yen per 1kW for private use. They plan to apply the batteries to their Shizuoka Hosoe Plant, a parts maker in Oita and Honda Sun this spring, and also plan to adopt them for Honda's Ohio plant. They are now considering starting sales to home centers and house builders next year. According to Honda, batteries for the Hosoe Plant can generate 10,000 kW/h per year and help reduce CO2 by 40 tons and for Honda Sun the figure will reach 30,000 kw/h.Currently, solar batteries produce 380 megawatt/h globally in one year, The figure is expected to triple or quadruple in the next decade. To keep up with these large demand increases, they plan to aggressively expand sales to large customers. For the time being, they are scheduled to produce 100,000 kw/h at the Shizuoka plant. Toyota and PSA construct a new plant in CzechOn the 10th, Toyota and PSA started construction of a new joint venture in Czech. This will be Toyota's third European plant, following the UK and France. The new plant is scheduled to start operation in March. Total investment is expected to reach 1500 million euros and capital will be 65 million euros, and each company plans to contribute half. The new plan will consist of two major facilities for 1.0 liter and 1.4 liter compact passenger car production. They plan to hire 3,000 employees. At the ground-breaking ceremony on the 10th, heads of the two companies announced that they will donate 250,000 euros to the local hospital as a part of local contribution.Autoliv to strengthen production of curtain airbags in JapanAutoliv, a Swedish automobile safety parts maker, plans to increase production capacity for curtain airbags (inflatable airbags) and seatbelt parts in Japan. They are scheduled to build an additional production line for airbags at their Japanese subsidiary, Autoliv Japan, and start production for seatbelts at NSK Autoliv, a joint venture with NSK established in 2000. At Autoliv Japan, they currently have 12 production lines for front seats, side and curtain airbags and they have allocated two lines for curtain airbags.Nissan to conduct large modifications at minor changesIn order to stabilize sales, Nissan has decided to conduct large-scale modifications during minor changes. Usually, automakers set 4 to 5 years for model cycles. The modifications include external/internal body colors, front mask and rear design. They also adopted engine modifications for minor changes to meet emission regulations. They have already applied the new program to the Wingroad, Liberty and Serena, and succeeded in achieving sales increases. Nissan plans to apply these modifications for other minor changes to bring up sales of models between full model changes.April 11, 2002Honda's new North American order system to link to dealersThis summer Honda plans to adopt an order system linking to dealers for certain models. The models will be popular vehicles that have long waiting lists. They intend to establish high efficiency production systems and strengthen marketing. The new system is scheduled to begin with the Fit. They also plan to equalize delivery dates between dealers with the new system. As a first step, they will analyze actual orders and backlog figures, then allocate a sufficient number of vehicles to each dealer. Next step is to set "order limitation" based on the analysis. They plan to expand its application to other popular models.On the 10th, Honda held a line-off ceremony for the Odyssey at a Chinese joint venture, Guangzhou Honda Automobile. At the same time, they adjusted the Chinese production target upward to 59,000 units for 2002. The Odyssey will appear on the market on April 18. Annual production target is 14,000 units. Honda has modified specifications to meet the trend in China. Engines and automatic transmissions for the Odyssey are produced at Dongfeng Honda Engine, adjacent to Guangzhou Honda. Production of Guangzhou Honda Automobile, established in March 1999, reached 100,000 units in March 2002. Their current annual production is 50,000 units and they plan to achieve 120,000 units in 2002. Used car sales in FY2001 decline for the first time in two yearsAccording to JADA, used car sales in FY2001 (April 2001-March 2002) decreased, for the first time in two years, to 5,470,962 units, down 1.7 percent. However, the figure is still higher than new car sales (137.5:100). The decline is mainly due to sluggish sales of new cars. In the new car market, compact passenger car demand is high but trade-ins for compact cars are relatively old. Although sales in the first half showed the same level as previous year, figures in the latter half dropped. In March alone, used car sales declined by 7.4 percent to 742,817 units. But used car sales were 29.1 percent higher than those for new cars.Import used car sales increase in FY2001On the 10th, Japan Automobile Importers Association announced that FY2001 used import car sales increased by 2.8 percent to 579,884 units. Standard passenger car sales jumped by 6.8 percent to 357,626 units while compact passenger car sales declined by 4.1 percent to 170,293 units. Cargo vehicle sales increased by 8.2 percent to 4,802 units. In March 2002, figures decreased by 2.5 percent to 71,790 units. Top brand was Mercedes Benz with 11,770 units, followed by Volkswagen with 8,863 units and BMW with 8,716 units.Suzuki expands ULEVs
For ULEVs,Daihatsu has begun pulling ahead of other makers by equipping their vehicles with TOPAZ catalysts. Suzuki's move into this area is expected to further intensify ULEV competition among automakers. Yamaha is trying to achieve a 20 percent share in the global motorcycle marketYamaha Motor has announced a new mid-term business plan "NEXT50", targeting 2005, a year commemorating their 50th anniversary. They plan to gain half of their entire sales and profits from their motorcycle business by concentrating on China, India, and South East Asia. BY 2005, they hope to achieve consolidated sales of 1,050 billion yen and operational profits of 65 billion yen. For their current mid-term plan, ending in March 2002, they have set 1 trillion yen in sales and 5 percent profits, but exchange rate fluctuations and withdrawal of non-profitable divisions made it difficult to achieve the goal.Yamaha's motorcycle sales target for 2005 is 586 billion yen and 3,320,000 units (up 50 percent). They also expect increases in operational profits in Europe and North America by establishing headquarters there. For cost cutting, they plan to expand system suppliers and procurement in China. In order to expand parts procurement in China, they are scheduled to establish a new company with investment of 30 million yuan and they will start operation in July. The new company plans to procure parts equivalent to over 10 billion yen in three years and they will also take charge of motorcycle development for the Chinese market. In addition, they are scheduled to introduce compact a new style 4-cycle two-wheel vehicle with automatic shifting in order to expand into a new category market. April 10, 2002Honda to develop a new high fuel efficiency gasoline engineHonda plans to develop a high fuel efficiency gasoline engine with over 25 percent heat efficiency. They are scheduled to use combustion technology accumulated through development for diesel engines. They are also scheduled to use their latest devices, including i-VTEC (variable valve timing control system) and i-DSI (twin plug injection system). Honda has revealed that they will shift to a newly developed gasoline engine for their entire gasoline lineup in 2005. To achieve this goal, they have completed development of the latest control systems and as a next step they plan to improve combustion control while achieving high heat efficiency. As a result, they intend to achieve a large emission reduction equal to half the figures in the latest regulations. By developing highly clean systems for gasoline engines, they plan to avoid using high cost systems such as hybrid systems.Mazda to supply center panel modules to FordMazda plans to apply center panel modules to their entire lineup and at the same time they will set various audio systems so that they can meet diversified customer needs while achieving cost reductions. They also plan to propose their center panel modules to Ford in order to bring further cost cutting by mass volume production. Mazda has been aggressively increasing modularization and in the Atenza, to be introduced in May, they plan to adopt five different modules including cockpit, center panel and front end. The center panel modules will consist of air conditioning outlet, audio units and switches and they can reduce costs by 30 percent. They are also superior in appearance (seamless) and widely adaptable in size and location of switches.Nissan unveils first subcompact, the MOCOADVICS to supply brake systems overseasADVICS will start overseas supplies of brake systems in January 2003 for the Toyota Sienna produced in Indiana. Monthly supplies are expected to reach 10,000 units. ADVICS is in charge of complete system development including disc brakes, master cylinders and ABS systems. SEI Brakes (a subsidiary of Sumitomo Electric Industries in Ohio) will produce disc brake calipers and ABS systems and Aisin Brake and Chassis (Indiana) will manufacture oil line systems, including master cylinders and boosters. Aisin Takaoka's brake rotors will also be adopted for their brake systems. ADVISC is planning to expand sales to Ford and GM. Sumitomo Electric Industries is a tier one supplier of Ford for brakes and ADVISC is working on achieving orders for the next Ranger.Nissan sets a 9.2 percent sales increase for FY2002Nissan has set a domestic FY2002 sales target of 780,000 units, which is up 9.2 percent. While expecting the same sales level for registered cars in the domestic market (4 million units), they aim at a 19.5 percent sales share. The figure does not include sales for subcompacts. Since 1970s, their share has been declining and in 2000 the figure reached an all-time low of 17.8 percent. In 2001, their share slightly increased to 17.9 percent despite total sales declines. This year, in addition to the strong sales of the March, they plan to introduce about six new models (including full model changes). They also plan to enter the subcompact market by procuring an OEM model from Suzuki. Nissan hopes that their total sales in FY2002 will surpass 800,000 units for the first time in four years.Mitsubishi announces a small non-step route busMitsubishi announced on April 8 that the they have developed AERO MIDI ME, a domestic first non-step route bus, and will start sales on the 23rd. The AERO MIDI ME has a body size of 7 x 2 meters. Although total bus demand has been decreasing, demand for small route buses has been increasing in line with increases in an aging population and population declines in rural areas. Compared to sales a decade ago, figures tripled to 450 units. Because of its small size, the ME has a minimum turning circle radius of 5.7 meters while maintaining sufficient room between wheelwells. As a route bus, they have received orders from several companies. Sticker prices are 12.9 million yen for KK-ME17DE (front entry) and 13.4 million yen for KK-ME17DF (middle entry).April 9, 2002Exports to China jumpExports to China have been sharply increasing since February 2002. In February, figures of Toyota tripled to 1,256 units and those for Honda dramatically jumped. This is mainly due to cancellation of retaliatory tariffs last December. Toyota currently exports the Camry and Land Cruiser to Toyota Motor China (TMCL) and they expect exports to China will continuously increase after March. They also plan to start production of 1.3 liter models in Tianjin. Honda produces the Accord and Odyssey in China and exports the Civic, CR-V and Stream. They have already received 700 unit orders in May which greatly surpass their total figures from January to May in 2001 (300 units). Nissan also expects exports to China will recover although the figure was only 10 units in February. Nissan is scheduled to increase investment into a joint venture with Dongfeng Automobile Group to strengthen their Chinese business.Mitsubishi to develop catalyst NOx converterMitsubishi has revealed that they will develop a catalyst NOx converter for direct injection gasoline engines and commercialize it in 2003. Although their GDI engines feature high fuel efficiency, most of their models could not be certified as LEVs due to its high NOx emissions. Mitsubishi decided to use GDI engines for their entire lineup but they have restarted applications of port type engines to meet growing environmental consciousness. However, they have attached importance to superiority in GDI engines and decided to modify them to achieve both high fuel efficiency and emissions 50 percent below the figures in the latest exhaust regulations.Toyota to export the WiLL to ThailandToyota has decided to export the WiLL series, designed exclusively for young people, to Thailand where automobile sales have been steadily increasing. In Thailand, Toyota currently produces the Camry, Corolla and Hilux and imports the Lexus. In 2001 their sales increased by around 20 percent to 83,000 units and they target 90,000 unit sales in 2002. They intend to introduce the model in Thailand as a way to attract younger buyers and expand sales. The new model will be the WiLL VC, designed based on the Vitz, under the expectation that demands for unique compact models will grow. In Japan, the WiLL VC will be equipped with their next-generation network service, G-BOOK.Honda to produce FCEV in 2003Daihatsu to review production system in EuropeDaihatsu has revealed that they will cancel production of the Hijet in Italy in line with expiration of contract with Piaggio. They also plan to restructure their current production bases where efficiency is low. Daihatsu has been strengthening joint business with Toyota in order to gain better access to overseas markets and they started production of the Cuore (a model based on the Mira) at ToyotaÕs Pakistan plant in 2000 and the Terios at ToyotaÕs Venezuela plant in 2001. In Europe, they focus on imports and sales of small cars, which are heavily affected by exchange rate fluctuations. On the other hand, Toyota is expanding their European business by establishing a French plant and developing joint production with PSA. Daihatsu plans to strengthen cooperation with Toyota in Europe while concentrating on restructuring.Government to conduct tests for "Smart Plate"The Ministry of Land, Infrastructure and Transport will soon start a large-scale experiment for "Smart Plate" electronic number plates. The experiment is scheduled to start on public roads located in the Tokyo area from FY2003. The system is aiming at preventing car accidents and traffic congestion and improving public service. The Smart Plate is equipped with IC chips which exchange user information with systems installed on the road. The Ministry is targeting 2003 introduction by strengthening cooperation with National Police Agency and collecting public opinion while concentrating on protecting privacy.GM and DC to enter FCEV tests in JapanIn addition to large domestic makers, GM and DaimlerChrysler are expected to be included in 2002 FCEV tests which will be held by the Ministry of Economy, Trade and Industry. The ministry plans to provide sufficient infrastructure with large hydrogen stations in the Tokyo area. The tests are aimed at accumulating data and increasing recognition of FCEVs. The ministry also provides "Three Basic Rules" which includes 1) conducting in an indiscriminate manner for domestic and overseas makers, 2) sharing data and information, and 3) carrying out objective evaluations. The ministry plans for FCEV introductions on the market in 2003 and 2004 and set sales target of 50,000 units in 2010 and 5 million in 2020.April 5, 2002Import car sales fell in FY2001On April 4, JAIA announced that import car sales in FY2001 (starting from April 2001 and ending in March 2002) decreased by 1.6 percent to 272,560 units. Increases in sales of import cars produced by overseas makers could not cover a sharp decline in Japanese import car sales in addition to affects from economic downturn in the latter half of FY2001. Total figures fell for the first time in two years. Sales of import cars manufactured by overseas makers slightly increased by 0.2 percent to 258,684 units while those by Japanese makers dropped by 26 percent to 13,864 units. For sales by overseas makers, passenger cars accounted for 252,611 units (up 0.8 percent) and trucks are 6067 units (down 20.2 percent). Volkswagen was the top maker with 60,226 unit sales (down 1.4 percent), followed by Mercedes Benz with 51,020 units (down 3.6 percent) and BMW with 35,691 units (down 0.8 percent). Peugeot showed a sharp increase in sales (up 11.4 percent). Brands that showed increases include Volvo, Honda, Audi, Alpha Romeo, Jaguar, Land Rover and Smart. In March alone, import car sales decreased, for the seventh straight month, by 2.8 percent to 35,294 units. Top four brands showed decreases while sales of Peugeot, Audi and Jaguar increased.Compact cars and minivans dominate top ranking in FY2001On the 4th, sales rankings of registered cars and subcompacts were announced. Four one-liter cars and four minivans captured the top ten for registered cars and wagons with high roofs dominated the top subcompact ranking. Demand for vehicles with roomy interior is expected to continue producing strong sales.(See table for Sales ranking in FY2001) JADA announced registered car ranking on April 4. The Toyota Corolla kept the top sales for the second consecutive month. This is due to introductions of additional versions, including the Spacio (minivan) and those with hatchback. The Honda Fit (Jazz) captured second place despite having a sales term of only 10 months. Even though it just completed a full model change, the previous Nissan March became the 10th best-selling car. For minivans, the Honda Stepwagon and Ipsum showed two-digit increases and the Toyota Estima and Honda Stream showed stable sales. Five Toyota, three Honda and two Nissan models captured top ten. Top 10 models of Honda were new models while those of Nissan were models introduced over four years ago. According to subcompact rankings revealed by Nikkan Jidosha Shimbun, the Suzuki WagonR was the top selling model (for the seventh consecutive year). Wagons with high roofs dominate the top three. Although sales of the WagonR dropped sharply, Suzuki made up the loss by increasing sales of the MR wagon. Mitsubishi eK wagon introduced in October 2001 captured 7th place. For sedan type, Daihatsu Mira and Suzuki Alto captured the fourth and fifth places due to high cost performance. Total passenger subcompact sales increased due to new model introductions. Hino to supply emission reduction systems to Nissan DieselHino and Nissan Diesel have reached an agreement for supplies of "PM Trap" (particulate matter after-treatment units) for Nissan Diesel's mid-size trucks from 2004. They have already concluded a contract that Hino will supply mid-size truck engines to be supplied to Nissan Diesel, starting from 2004. By procuring emission reduction systems and engines for mid-size trucks from Hino, Nissan Diesel plans to concentrate on development of large trucks. Nissan Diesel is now in the midst of business restructuring and focusing on integration and concentration of the current business. The PM Trap, which has already been adopted for the Ranger Pro, has the same size as a muffler and a low sticker price of 300,000 yen ($2,300, $1=132 yen). This is in response to implementation of diesel emission regulations in Tokyo in October 2003.Automotive companies apply for preferential taxAccording to a report released by the Ministry of Economy, Trade and Industry, 20 automotive companies have been approved and received benefit from industry revitalization laws since 1999. The laws are aimed at supporting companies with plans for restructuring. Chemical related companies are the top with 21 cases. Sixteen automotive companies were approved for preferential tax for registration and licensing. This is due to a large-scale restructuring in the automobile industry and overseas maker's investment into Japanese automakers.Mitsubishi Motors (additional investment by Volvo) NHK (separation of cable business) Suzuki (additional investment by Fuji Heavy Industries) Hino (additional investment by Toyota) Zexel (transfer of air conditioning business) Calsonic Kansei (merger) Fuji Heavy Industries (additional investment by GM) Toyota (establishment of a new financial company) Daihatsu Diesel NHN (restructuring in production procedures) Nissan Credit (merger and additional investment) Mitsubishi Motors (additional investment by DaimlerChrysler) Suzuki (additional investment by GM) Nissan (production consolidation by plant closures) Saitama Mazda and two other Mazda dealers (additional investment and merger) Recalled cars exceed 3 million in FY2001On the 4th, the Ministry of Land, Infrastructure and Transport announced that the number of recalled vehicles surpassed 3 million units for the first time in FY2001. They expect parts sharing between different models was the main cause for the increase. This is based on statistics showing that the number of cases decreased by 4 percent while the number of recalled vehicles jumped by 36 percent. Domestic models accounted for 93 cases and 2,910,857 units and import cars were 76 cases and 364,378 units. Average number per case is 19,380 units, which is up from 1,420 units recorded a decade ago. The ministry is scheduled to announce causes for malfunctions soon based on result of their research on automakers and users.April 4, 2002Daihatsu to develop high resistant bodiesDaihatsu is concentrating on development of safety bodies for their subcompacts to improve passenger security in the event of collisions with larger vehicles. They have already developed TAF safety body that can absorb impact into front bodies. It was adopted to the MAX, introduced last year. They plan to improve TAF safety bodies by modifying side member size and establish their own safety standard. This should enable them to secure space for passengers in subcompacts when colliding into 3 liter models at a speed of 50km/h. They plan to expand its application in order to strengthen their brand image.Mazda to expand modularizationOn the 3rd, Mazda announced that they will adopt modules for major parts that integrate units depending on their functions and apply them to the new Familia to be introduced next year. For the new Atenza, which will appear on the market next month, they plan to adopt five different modules, including front end, door, fuel tank, instrument panel and center panel. For the new Demio they plan to add air intake module and in the new Familia they are scheduled to include interior module and rear door module (for hatchback). For the rear door module, they plan to use high resistant resin forming technology to achieve a cost reduction of 35 percent and a weight reduction of 40 percent. They said that they can clear the rear collision standards in the US. They are now focusing on development of adhesive method for outer and inner panels. In total, they plan to achieve 10 to 30 percent costs reduction.Mazda has revealed that they will strengthen product competitiveness for subcompacts. Since their withdrawal from the subcompact production, they have been downsizing sales. However, subcompact standards implemented in 1998 contributed to sales increases. In response to growing demand for subcompacts, Mazda has decided to create their own body design for the current OEM models from Suzuki in order to strengthen uniqueness. Their current monthly subcompact sales are 3,000 units. According to JAMA, subcompact sales in FY2002 fell by 0.8 percent to 1,830,000 units but Nissan's entry into the subcompact market is expected to expand sales. Fujitsu Ten to further emphasize overseas expansionFujitsu Ten, a leading car audio maker, is strengthening "Infotainment" (combining information and entertainment) and focusing on system development covering IT and digital AV. Their major product is "AVN" that integrate audio systems, monitors and navigation into 2DIN. In FY2001, their sales jumped by 50 percent and sales share of audio units increased by 9 percent (13 percent for car navigation systems alone). Their main brand "Eclipse" is available in North America, Korea, Thailand, Australia, Taiwan and Malaysia. They are scheduled to start sales in Singapore this year. If Eclipse will achieve high recognition, they hope supplies will expand to the US Big Three as an OEM product. To respond to increasing demand for cost reduction from automakers, they are scheduled to shift to production in other countries where labor costs are low. Their current overseas production accounts for 40 percent of their total figure and they plan to increase to 50 percent in 2004. To achieve their FY2003 sales target of 200 billion yen ($1.5 billion, $1=132 yen), they plan to propose effective and attractive ideas to automakers to survive in the fierce competition between parts makers.Keihin to expand resin intake module productionKeihin has decided to increase production of resin intake modules by 18 percent in FY2002. In FY2001, they produced 600,000 units which was 4 times the figure in 2000. They started resin intake module production and supplies to Honda for the Civic in 2000. They used to use an aluminum intake manifold manufactured by Honda Foundry. Their resin modules, combining resin intake manifold, injectors, fuel line systems, sensors and EGR, are now adopted for Honda's 4 cylinder engine models, including Stream, CR-V, Fit and Stepwagon.NOK to produce anti-vibration rubber in ChinaNOK will soon establish a 100 percent subsidiary in Jiangsu, China. Their main product will be torsional vibration dampers (TVD), which reduce vibration on engine crankshaft axis. The new plant, their fourth Chinese plant, will have 50,000m2 (floor size of 13,000m2) and 190 employees. They plan to invest 1.7 billion yen ($13 million) into the new plant. NOK's sales of anti-vibration rubber are 1.3 billion yen and for TVD they are the top domestic maker. In China, NOK has two oil seal production bases (one of them is a joint venture with Freudenberg) for the Chinese market and one O-ring production base for the Japanese market.April 3, 2002Nissan to expand US lineupNissan has decided to cancel sales of luxury sedans for the domestic market and introduce domestic sports sedan lineup for the North American market. Due to popularity of RVs in Japan, the sedan market has been shrinking. The sports sedans for the North American market include the Skyline and Gloria (FR sedans). The Skyline was introduced in North America in March. Nissan plans to start sales of the Gloria and Skyline Coupe this autumn. The Gloria is scheduled to be sold at Infiniti dealerships (annual exports are 12,000 units). The Altima, introduced last year, showed strong sales. In 2003, Nissan plans to start production of SUVs, minivans and pickup trucks at a new plant and at the same time they are scheduled to shift production of the Maxima (Cefiro) to local production in order to strengthen sedan sales.Hyundai introduces the CoupeOn the 2nd, Hyundai Motor Japan introduced the Hyundai Coupe. The model is equipped with a 2.7 liter V6 engine, a large glass sunroof and traction control systems. They adopted high processing ECU units and 6 speed manual transmissions for the first time. The sticker price is under 2 million yen. They expect annual sales will reach 500 units.Hyundai Motor Japan has revealed that they will expand brand specific dealers from 32 to 200 in order to achieve a 2005 sales target of 20,000 units. They intend to improve their brand image through sponsorship and advertising activities in conjunction with the World Cup. In 2002, they are scheduled to introduce the TB, a world strategy compact model, and increase brand specific dealers to 60. The TB is equipped with a 1.3 liter engine and its sticker price will be 990,000 yen. Their sales target is 5,000 units, which is 4.5 times their 2001 sales figure. Hyundai Motor Japan was established and started importing their models in January 2001. Truck sales in FY2001 declineAccording to truck associations, sales in FY2001 (starting from April 2001 and running through March 2002) fell by 2.3 percent to 75,432 units. The figure decreased for the first time in two years. Mid-size truck sales increased due to new model introductions. However, the total figure did not reach their initial plan of 80,000 units. Mitsubishi was the only maker that showed increases.
Figures on the second low denotes sales in FY2001 (Apr.2001 to Mar. 2002) Mahle Tennex to halve product costsMahle Tennex, a filter and resin parts maker, plans to halve product costs by 2006, two years earlier than planned. This is in response to Nissan's new three-year cost reduction plan, "Nissan 180", which declares a 15 percent cost reduction target for 2005. In a mid-term business plan by Mahle Tennex, they established targets for an 8 percent increase for operational profit (currently less than 3 percent), and 35 billion yen in sales (currently 30 billion yen) in 2007. They also established "Cost Reduction 50" to achieve a 50 percent cost reduction in 6 years starting in FY2001. They expect production will expand by 40 percent due to aggressive new product development and expansion of business deals, which will make cost reduction measures more important. They plan to pursue synergy with the Mahle Group, including joint parts purchases, along with cost reductions in procurement and transportation.IHI to import turbochargers from ThailandIshikawajima Harima Heavy Industries (IHI) plans to import automobile turbochargers for supply as OEM parts from their new subsidiary in Thailand. This February IHI and Toyota set up IHI Turbo Thailand and they will start operation in October. They are scheduled to produce 260,000 units in 2003 and 300,000 units in 2004. In addition to exports to Japan, their main clients will be Siam Toyota, Isuzu Engine, and Auto Alliance Thailand (a joint venture between Ford and Mazda). Exports to Japan in 2004 are expected to reach 200,000 units. Demand for turbochargers has been increasing due to application expansion for next-generation diesel vehicles and subcompacts. At the same time, automakers request aggressive cost reduction to parts makers. IHI plans to increase production in Thailand in order to improve cost competitiveness and defeat Garrett, KKK and Mitsubishi Heavy Industries.Sales of child safety seats tumbleJapan Auto Parts Industries Association has reported that 2001 sales of child safety seats dropped to 1,131,878 units (down 60 percent). They speculated that sharp increases in 2000 when the government regulations imposed installation of child safety seats led to market saturation. Their survey was carried out on 12 makers. Over 90 percent of child seats sold were certified by the Ministry of Land, Infrastructure and Transport, but only 1/4 cleared the latest standards.April 2, 2002New car sales in FY2001 declineNew car sales in FY2001 (starting from April 2001 and ending in March 2002) decreased by 2.6 percent to 5,824,769 units. The figure fell for the first time in two years. The market is expected to continue being in an unstable condition.According to JADA, new cars registered in FY2001 (excluding subcompacts) fell by 3.4 percent to 3,979,834 units. This figure is roughly the same level as 1999. However, passenger car sales slightly increased (up 0.9 percent) to 3,012,890 units due to strong sales of one-liter cars and minivans such as the Honda Fit and Toyota Estima. Compact passenger car sales increased by 2.8 percent. On the other hand, truck sales dropped by 15 percent to 950,708 units. Small truck sales were the lowest. Honda, Suzuki and Hino were the only makers that showed increases. Honda, especially, showed strong sales (up 23.4 percent). Although Mazda marked the lowest ever, they surpassed figures of Mitsubishi for the first time in 10 years and gained the top 4. In March alone, sales continued to decrease and the only models that showed increases are the Honda Fit, Toyota Vitz and Nissan March. Honda was the only maker to achieve increases. Japan Mini Vehicles Association announced on the 1st that subcompact sales declined by 0.9 percent to 1,844,935 units. The figure fell for the second consecutive year but new model introductions in the latter half brought up passenger car sales by 0.8 percent to 1,281,930 units, resulting in the highest sales ever. Cargo vehicle sales declined by 4.4 percent to 563,005 units. Suzuki, Mitsubishi and Mazda showed sales increases while Suzuki, Daihatsu and Honda showed declines in sales share. In March alone, sales fell by 3.8 percent. They think this is because production could not catch up with increasing orders. Toyota sets a 2010 world share of 15 percentOn April 1, Toyota revealed that they set a 15 percent sales share in the global market in their new long-term business plan, called "2010 Global Vision". The new plan is a successor of "2005 Vision", implemented in 1996, and established for a new century to come. In order to catch up with rapidly changing social and technological situations, Toyota plans to accomplish business renovation to achieve high competitiveness in the global market. Their main pillars in the plan are development of ITS, motorization and clean technologies. They are scheduled to strengthen the latest technology, including nano materials through cooperation with overseas makers. At the same time, they plan to concentrate on cost reduction.Toyota tries to reduce costs for fuel cell vehiclesToyota is concentrating on development of a new method for fuel cell vehicles that reduce the volume of platinum for catalysts in order to greatly cut costs. For drive train and fuel cells, Toyota has succeeded in achieving high reliability and basic technology. For the next step, they have decided to tackle with cost reduction. They expect the new method will help lower costs by 1/50. They plan to develop highly efficient materials that can replace platinum used for catalysts based on technology accumulated through gasoline engine catalyst development. Toyota has set a 2005 FCEV sales target at 300,000 units.Honda handles motorcycles at automobile dealers in GermanyHonda plans to expand automobile dealers handling motorcycles in Germany in response to growing demand. They are the top motorcycle brand in Europe but their automobile sales have been deteriorating and decreased to 30,000 units. Honda has reduced dealers from 500 to 200 in order to increase efficiency in Germany where they are lagging behind in diesel vehicle introductions. In order to strengthen sales in Europe, they plan to recruit new dealers to increase the number to 300 in 2004. They have already opened 30 dealers handling both automobiles and motorcycles and plan to expand the number. They also plan to introduce the Jazz and Civic diesel this year.Nissan to set telematics service for InfinitiNissan announced on March 29 that they will provide "Infiniti Communicator", a telematics service, for four 2003 Infiniti models in the US. The service will include emergency information service, voice mail and news (including stock information), using the WingCast system. They also provide hand-free phone, information forwarding service, and navigation service. In Japan, Nissan has started telematics service with the March and they are now proceeding with a joint development project for the third-generation mobile communication technology with NTT DoCoMo. In Europe, they have announced that they will participate in a joint venture with Renault, Ford and PSA for telematics service. |
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