Auto News From Japan - March 2002
Daily News---March 2002
March 29, 2002Export figures in February jumpAccording to an announcement made by JAMA on 28th, vehicle export figures in February increased by 10.9 percent to 376,275 units. The figure grew for the second consecutive month and showed a two-digit increase for the first time in 19 months. This is due to a sharp increase to North America, up 21.9 percent to 175,531 units (up 18 percent to 151,799 units for the US alone). All makers, excluding Nissan Diesel, showed increases. However, total figures from April 2001 fell by 3.9 percent to 3,853,427 units. Exports of all vehicles (passenger cars, trucks and buses) increased for the second straight month. Exports to Europe as a whole slightly declined (down 1.1 percent to 78,886 units) while figures to EU nations increased by 0.5 percent to 69,352 units. Figures for Asia declined sharply (down 19 percent to 24,602 units) due to increasing local production of Japanese makers. Exports to the Middle East skyrocketed (up 52 percent) and figures for Africa and Oceania also increased by 18.3 percent and 4.7 percent respectively.
Hino to concentrate on commercialization of DPFIn order to reduce PM emissions, Hino plans for early achievement of DPF commercialization placing them well ahead of other automakers. They plan to improve "PM Trap", a PM reduction system used in the Ranger Pro. They are scheduled to complete development of DPF systems (for commonrail electronic fuel injection systems with after-injection for diesel engines) and install them on mid-size and large trucks. They also plan to clear new 2005 long-term emission regulations, one of the toughest regulations in the world, with the newly developed DPF system. Their commonrail electronic fuel injection systems, developed with Denso, are very efficient for NOx reduction.Citroen Japon to conduct import businessOn the 28th, Citroen Japan announced that they will take over import business of the Citroen conducted by New Seibu and start imports and sales on April 1. They plan to expand sales network from the current 57 to 80 in 2002 and achieve annual sales of 8,000 units in the next four years. This year they have set a sales target of 1700 units, up 50 percent on year-to-year comparison. Last autumn, Citroen Japon and New Seibu reached an agreement for shifting import rights. As a result, all official dealers of the Citroen will close up their dealings with New Seibu and shift to Citroen Japon. Operation rights of four direct dealers of New Seibu located in Tokyo and Kanagawa will also be shifted to GST, the official Citroen distributor. Citroen Japon is scheduled to introduce the full model changed C3 this autumn and three additional models by 2004.Fuji Heavy Industries to set up Subaru EuropeFuji Heavy Industries announced on the 28th that they will set up an integrated management company in Europe, called Subaru Europe, and start operation on April 1. Subaru Europe, located in Zaventem, Belgium, is a 100 percent subsidiary of Fuji Heavy Industries. They absorbed Subaru Parts Europe. They also plan to set up a branch office in Ingelheim, Germany. The head office in Belgium will start business with 10 Japanese and 13 European employees. They intend to further reduce costs by concentrating the management system into one company.
Toyota to establish a new brand for young people in the USAt New York International Motor Show, Toyota announced their new brand, SCION. It will target young people. For the first stage, TMS (Toyota's US subsidiary) plans to introduce the bbX, a bB based model, and ccX in June 2003. The concept model for the ccX was unveiled in January. By 2004, they are scheduled to release a total of three models. Their sales target for the three models is 100,000 units. TMS started a project, Genesis, to research the market for young people.Toyoda Machine Works to entrust ECU production to Fuji Machine Mfg.Toyoda Machine Works plans to entrust ECU units to Fuji Machine Works used in ITCC (Intelligent Torque Control Coupling) for 4WD systems. Toyoda has received orders for ITCC systems from overseas automakers, including the US Big Three and they plan to start supplies this year. By outsourcing ECU production, they plan to avoid additional facility investment. They have already supplied ITCC to Toyota and Nissan but ECU units are usually developed and combined with ABC systems by automakers. On the other hand, overseas makers place orders for ECU built-in ITCC systems. Annual production of ITCC systems in FY 2003 is expected to reach over 250,000 units.March 28, 2002Nissan to launch full scale overseas production of the MarchNissan will soon start full scale overseas production of the March. Following Europe, they plan to expand production in Asia and South America. At the same time, they are scheduled to start production of a second small car at their UK plant, following the Micra. For small cars, Nissan has been conducting overseas production of models using chassis of the Sunny. March class models have been manufactured only in Japan and Europe. In line with the expansion of the small car market, they have decided to start production of the March in countries where they have not previously manufactured the model. By doing this, they intend to strengthen sales system in the global market in cooperation with Renault.Production in February declinesOn the 27th, JAMA announced that domestic vehicle production in February slightly declined to 896,712 units, down 0.1 percent. Increases in exports could not cover sales declines in the domestic market. As a result, total production in FY2001 will barely surpass 10 million units (total sales from April 2001 to January 2002 are 8,142,972 units). For passenger cars, standard vehicle production increased for the second consecutive month while those for compact cars fell due to expansion of overseas production. Subcompact passenger car production also increased for the 6th straight month. On the other hand, truck production dropped for the 6th consecutive month.
Isuzu to rely on IT for sales activityIn order to cover decreasing sales competitiveness caused by aggressive personnel reduction, Isuzu has decided to expand application of IT for their sales activities. They plan to use PDA systems to record detailed information of business talks and afterservice at dealers, and conduct precise information maintenance, which has usually been controlled by dealers. The information will directly link to Isuzu to their customers so they can quickly respond to inquiries about delivery dates and other necessary information. Isuzu also intends to control production adjustments and shorten delivery periods.DaimlerChrysler Japan sets sharp sales increases in 2002DaimlerChrysler has revealed that they plan to achieve a 14.5 percent sales increase to 58,000 units for Mercedes Benz and Smart. They expect their aggressive improvement in sales network for Mercedes Benz and new model introductions will lead to sales increases despite anticipating an economic downturn. For Mercedes Benz alone, they plan for a 3 percent increase (48,000 units). They are scheduled to introduce full model changes to the E Class and CLK and they also plan to provide low-interest loans and special specifications for the models. For the Smart, they have set a 250 percent increase (10,000 units). They think that application of right-hand drive and subcompact specifications will contribute to sales increases. Sales of the Smart in January and February are 408 units for registered models and 924 units for subcompact models.Toyoda Boshoku to concentrate on efficiency improvementToyoda Boshoku, a spinning company, is expected to achieve consolidated annual sales of 100 billion yen in FY2002 for the first time. They have finally mastered development method of interior system after Toyota shifted system development to Toyoda Boshoku. This will avoid overlaps of production with Toyota and it can also eliminate mockup production, which will greatly contribute to achieving their cost reduction target of 30 percent in 2003. Their main products are carpets and roofs and for noise proof materials they mostly join hands with other large makers. For Toyota IMV (Innovated International Multipurpose Vehicle), they are now working on its development and they plan to produce and sell the vehicles overseas. In Thailand, they are scheduled to conduct business as a system supplier. In terms of filters, they are thinking about being independent as a spinning company while expanding production of resin intake manifolds and air filters with Denso. This year they plan to establish a basic system to become a leading system supplier.March 27, 2002Automakers announced business performance in FebruaryFive large automakers announced their business performance on March 26. All makers showed increases in exports due to strong sales in North America. Toyota and Mazda showed two-digit increases. Although they expected that overseas production expansion would result in export declines, the yenÕs depreciation and brisk sales of Japanese cars in North America increased overall export figures. The Toyota ES300 (Windom), Highlander (KlugerV), Nissan G35 (Skyline) and Honda Accord contributed the export increases. For overseas production, Toyota achieved a two-digit increase due to increases at plants in the UK, France and Canada. Figures for Nissan, Honda and Mazda also increased. Honda was the only company that achieved increases in domestic sales.Rolf Eckrodt assigned as Mitsubishi PresidentAt an interim board meeting on 27th, Mitsubishi has decided that they will assign Rolf Eckrodt (COO) as new president. He is scheduled to officially assume the post at a shareholderÕs meeting in June. Mitsubishi hopes that this will accelerate business restructuring. Eckrodt became COO of Mitsubishi in January 2001 after MitsubishiÕs recall concealment was revealed in July 2000. He took charge of drafting a new restructuring plan ÒTurnaround PlanÓ and contributed to their business recovery. They are now concentrating on returning to profitability in North America. The assignment is expected to further accelerate personnel downsizing. At the same time, Mitsubishi will abolish their conventional personnel system (age-based wage system) and adopt a new evaluation-based system to revitalize their business.Hitachi plans for overseas production of automobile partsHitachi has started a study for new overseas plants for automobile parts in European Continent and China. This is in response to strong demand from Japanese and overseas automakers such as GM and Ford. They plan to decide details by the end of this year. They have already set up a plant in China but this will be first time for Hitachi to have a production base in Europe for automobile parts. Their consolidated sales for automotive business is 180 billion yen. They started overseas expansion in 1985 and they have plants in the US, Thailand, China and the UK. In the European continent, they plan to produce throttle bodies and other engine parts and they also plan to strengthen sales of fuel injection systems for gasoline engines. Hitachi currently exports airflow sensors from Japan to Europe. They have achieved the top sales share for airflow sensors in the global market. At the second Chinese plant, they are scheduled to expand production items in addition to starters and alternators produced at their current plant in line with automakersÕs business expansion in China.Shiroki to modify production items at US plantsShiroki plans to review and modify production items at their two US plants. They intend to expand production of door sashes at their Georgia plant (SWM Georgia LLC). At their Tennessee plant (SW Manufacturing), they will shift pressing parts production to SWM Georgia LLC in order to concentrate on seat recliner production in line with increasing demand for seat recliners in the US. Main products of SWM Georgia LLC, established in 1995, are window regulators and lock systems for luggage rooms while this January they started production of door sashes for Toyota. They have been procuring pressing parts from SM Manufacturing so the production shift is expected to expand production items. SM Manufacturing has recently received orders for seat recliners for large one-box cars from Toyota and plan to start production in 2003. In line with production expansion, they are scheduled to invest 500 million yen into facilities, including welding and assembly systems.March 26, 2002Hino and Scania conclude a contract for long-term business cooperationOn the 25th, Hino and Scania, a Sweden large vehicle maker, concluded a contract for long-term business cooperation. For the time being, Hino will handle Scania's tractors under the Hino brand and supply 7 to 8 liter engines to Scania. They also plan to exchange emission technology for engines. At a press meeting, Hino President, Tadaaki Jagawa said that in order to develop transportation and distribution markets, truck makers are required to tackle energy and environmental problems from a global perspective. He also mentioned that as a truck maker having a strong presence in the global market they have a long-term commitment to overcoming these problems. In Japan, Hino is scheduled to start sales of Scania's low-floor tractors and high-roof tractors in 2004 to 2005.Nissan develops telematics systems for commercial vehiclesNissan has started development of telematics systems for commercial vehicles based on "CarWings" on-board systems used in the March. They plan to restructure the service package to meet needs of business people. Nissan has revealed that they will focus on compact car and commercial car users, which dominate a large percentage of total car sales. For the domestic market, they expect that there is high demand for traffic and facility information. They also plan to use technology of their other information service "Compass Link" provided for luxury model users, including the Cima, to develop a new service that will satisfy the needs of their diverse customer base.Mitsubishi and JATCO to integrate AT/CVT businessOn March 25, Nissan Motor, Mitsubishi Motors and Jatco TransTechnology (JATCO) revealed that they concluded a contract to integrate their automatic transmission and CVT business. This is based on the Memorandum of Understanding signed in October 2001 among the three companies. In the agreement, Mitsubishi's Kyoto and Mizushima plants will be integrated into JATCO in order to make JATCO a highly competitive AT/CVT company in the global market. As a result, JATCO will be one of the world's largest AT/CVT makers, producing approximately 3.3 million units. In a few years, they intend to expand production to 4 million. On April 1, Mitsubishi plans to establish a new 100 percent subsidiary, called Diamondmatic Co., Ltd. (DMC), to entrust all AT/CVT business and in mid May JATCO and DMC are scheduled to conclude a contract for exchanging shares. In July, DMC is expected to become a 100% subsidiary of JATCO (at share exchange ratio of 1.31423 stocks of JATCO to 1.0 of DMC). Nissan plans to own an 82 percent stake and Mitsubishi is scheduled to own an 18 percent in JATCO. The merger of the two companies is expected to complete spring 2003.Government to concentrate on modal shiftThe Ministry of Land, Infrastructure and Transport has decided to accelerate modal shift from trucks to ships and railroads. By revising regulations for railway business and setting up incentive measures to expand new types of large ships, they plan to expand the transportation ratio of ships and railroads from the current 45 percent to over 50 percent in 2010. They also plan to encourage railway business companies to establish a cooperative system with truck transportation business companies such as "cold chain system" in order to help create smooth operation. The government is now working on setting up various other transportation measures, including "Super Eco Ship" (an environmentally friendly ship) starting in 2006, as well as an ocean highway network and relaxation of domestic shipping regulations.Clarion announces sales declines in car audio unitsClarion published their report on 2001 car audio market trends on March 25. According to the report, total sales of car audio systems (including both genuine and aftermarket units) dropped by 10.3 percent to 8,830,000 units. The figure fell for the first time in three years. This is in response to overseas production expansion. Sales of CD players increased by 2.7 percent to 6,300,000 units while those for cassettes and MDs declined by 35.5 percent to 2,040,000 and 10.9 percent to 490,000 units. In a survey involving 1,120 car audio users, respondents attached the most importance to price, followed by function, design and sound performance. The most popular function is navigation (45.8 percent). For factory installed systems, CD units account for 3,670,000 units (up 13.2 percent), MD units are 100,000 units (up 250 percent) and cassette players are 1,650,000 units (down 35.5 percent). As options, all types showed decreases and in the aftermarket figures also declined for all three types. Results from the survey are also available on Clarion's web site.Automakers adopt sporty conceptAutomakers have started applying sporty concept for medium sedan lineup (1.8 to 2.5 liter) in order to stop sales declines in the medium sedan market. In line with increases in minivan sales since mid 1990s, the medium sedan market has been shrinking due to high performance of minivans. Automakers have achieved driving performance levels for minivans nearly equivalent to sedans while maintaining roomy interior. In order to expand sedan sales, they have decided to concentrate on taking advantage of sedan's potential by further improving their driving performance. In the Atenza, a successor to the Capella, Mazda is scheduled to emphasize the sporty image by adopting a newly developed chassis and engine in addition to the design itself. Honda has decided to shift the new Accord to sporty type, which will be introduced this summer. They also plan to equip the new Accord with a newly developed high output engine and elevate it to their flagship sports model. Toyota also plans to a sporty type FF medium sedan next year.March 25, 2002Mitsubishi to adopt a new brand identityMitsubishi has unveiled that they will adopt a new brand identity for their entire lineup in 2005. By improving driving and clean performance, they plan to strengthen their brand image. They are scheduled to focus on restructuring model lines and plan to concentrate on developing cross-over vehicles and new types of vehicles with innovative functionality. For sedans, they plan to consolidate their current 2 to 3 liter models. Models that reflect the new brand identity are schedules to appear on the Japanese market and then later expand to North America, Europe and other Asian nations.Mitsubishi to reorganize sales system in the USMitsubishi has revealed that they will strengthen their sales network in the US. Targeting 2007, they plan to increase their dealerships by 15 percent to 675. In line with this, they are scheduled to improve their product lineup. Mitsubishi has started restructuring their US sales network, and in 2001 they signed contracts with 47 new dealers. They are also focusing on increasing brand specialized dealers to expand sales (currently brand specialized dealers account for 70 percent). In 2002, they plan to include 34 new dealers. In 2001, Mitsubishi marked the highest sales figure ever in the US of 322,000 units (up 1.9 percent). This year their expansion to the Canadian market and introduction of SUVs are expected to help achieve 340,000 unit sales (up 2.1 percent).Nissan to meet global standards for enginesNissan has decided to meet global standards for engine size. This is in response to sharing engines and platforms with Renault. In the overseas market most automakers adopt even-numbers for engine sizes (ex. 1,000 cc, 1,200cc) while the domestic markers use 1,100 and 1,300 cc in the B segment and 1,500 and 1,800 cc in the C segment. With the March, introduced this month, Nissan changed engine size from 1,000 and 1,300 cc to 1,000, 1,200cc and 1,400cc. They plan to expand global standards for new models.Nissan sells stakes in Tochigi Fuji Sangyo to GKN Automotive InternationalOn the 22nd, Nissan announced that they sold their entire stake in Tochigi Fuji Sangyo (20.4%) to GKN Automotive International Gmbh. Tochigi Fuji is a parts maker producing transfers, torque management systems and PTU and 30 percent of their sales are gained from Nissan. The GKN group is a leading driveshaft maker in the global market and they manufacture over 1/3 of the global production. Nissan sold constant velocity joint production facilities of Tochigi Fuji to GKN Japan and shifted their entire constant velocity production to the GKN group. Tochigi Fuji is scheduled to reinforce business cooperation with the GKN group. According to Nissan, they plan to continue business with Tochigi Fuji and they think the selling off their stake will result in strengthening competition of Tochigi Fuji.Final RX-7 to appear in April Mazda announced today that they will release the final limited run series, ÒSpirit RÓ (1,500 units), for the third generation RX-7 equipped with rotary engines on April 22. This will be the last RX-7. The Spirit R series is available in three types: A (two-seater with a five speed manual transmission and Recaro lightweight full bucket seats), B (four-seater with a four speed automatic transmission) and C (four-seater with a four speed automatic transmission). Sticker prices are 3,998,000 yen for Type-A and B and 3,398,000 yen for Type-C. The last special edition model for the RX-7 was Type R Bathurst launched in December 2001.(picture on the right: A-Type) Fuji Heavy Industries to expand platform sharingFuji Heavy Industries has revealed that they will complete development of a new platform for horizontally opposed engines by 2005 and expand its application to various models. The new platform will be applied mostly to 1.5 liter models, including minivans, wagons, SUVs. They also plan to shift to new platform for their current models. Currently, they use the same platform for the Legacy, covering 1.5 to 3 liter models so cost efficiency for 1.5 liter to 2 liter models are low. In their mid-term plan ending in 2005, they set 173,000 unit sales (up 34 percent compared to 2000 figures) for the domestic market and 285,000 units (up 46 percent) for the North American market. Their 2005 target in the global market is over 800,000 units (up 38 percent). To achieve these goals, they plan to start with cost cutting by integrating platform so they can emphasize on next-generation technologies such environmental friendly systems.Aichi Machine Industry to supply 6 speed manual transmission for the Nissan ZAichi Machine Industry is scheduled to start supplying "ZG" (6 speed manual transmissions for FR models) for the new Nissan Z from May. Monthly supplies will be 4,000 units this year and increase to 5,000-7,000 units in 2003. They plan to expand ZG application (including 5 speed manual transmissions) to additional versions for the Skyline. Nissan has been procuring 6 speed manual transmissions from Getrag for the Skyline GTR and Aisin AI for the Silvia. Aichi has invested 2,500 million yen into their ZG production lines to prepare for supplies to Nissan. ZG has an improved shift operation and adopts cross gear ratio. Aichi has succeeded in high cost competitiveness by reducing low material costs at an early design stage. They intend to propose ZG to Renault and other automakers.March 22, 2002JAMA expects a slight increase for domestic car sales in FY 2002On the 20th, JAMA announced that domestic vehicle sales are expected to increase by 0.1 percent to 5,860,000 units for FY 2002. They expect that figures will increase for the first time in two years due to automakerÕs plans for new model introductions, especially small cars. In their forecast, passenger car sales will increase by 3.2 percent to 4,452,000 units (up 7.7 percent to 2,492,000 units for compact cars, up 1.2 percent to 1,300,000 units for subcompacts and down 7.7 percent to 660,000 units for standard passenger cars). For trucks, they expect total sales will decline by 8.7 percent to 1,392,000 units (down zero percent to 82,000 units for standard trucks, down 12.2 percent to 780,000 units for small trucks and down 4.5 percent to 530,000 units for mini trucks). Bus sales are expected to stay at the same level as last year. In FY2001, they anticipate registered car sales will reach 4,014,000 units (down 2.6 percent) and subcompact car sales will be 1,840,000 units (down 0.8 percent). As a result, total demand in FY2001 is expected to reach 5,854,000 units (down 2 percent).
Hino starts survey for product restructuringIn order to review and modify their current product lineup, Hino has started a survey to collect detailed data on customer satisfaction. They currently have over 100 different vehicle types each for large and mid-size trucks but orders concentrate on 20 to 30 percent of them. For the Ranger Pro alone, they have set over 300 different vehicle types in order to meet diversified needs from transportation companies. However, the recent truck sales declines forced them to reduce the number. They hope this move will help expand parts sharing between models and reduce costs. Through the survey they plan to decide which specifications and functions are indispensable for users. Facilitating standardization of their products to provide environment that users can easily change their vehicles in is one expected outcome of applying the opinions expressed in the survey.Government to start DPNR tests in JapanAn independent governmental corporation controlled by the Ministry of Land, Infrastructure and Transport and the Tokyo government will soon separately start tests of diesel engine vehicles equipped with DPNR systems, developed by Toyota. Toyota has already started tests in Europe aimed at clearing Euro 4, which will be implemented in 2005. According to Toyota, their systems can achieve emission levels at roughly half the figures specified in Euro 4. During tests in Europe (a one and half year test), Toyota is using the Avensis (equipped with a 2 liter engine). In Japan, they plan to use the Avensis with ToyotaÕs DPNR and low-sulfur content light oil.Kayaba to concentrate on module production in cooperation with Bridgestone and Akebono BrakeKayaba Industry has announced in their mid-term business plan that they will concentrate on domestic automotive related business. In response to declines in automobile production, automakers are requesting parts makers to cut prices. In FY2001, KayabaÕs sales in the automobile industry are expected to reach 80 billion yen. Their major automotive product is shock absorbers. In FY2002, they plan to maintain the sales level and profits of 5 percent. In order to achieve their goal, they plan to strengthen cooperation with Bridgestone and Akebono Brake for suspension module development by proposing cost and performance competitive products to makers they do not currently supply.Import car makers to make a full start for luxury model introductionsImport car makers have announced luxury model introductions starting this year. BMW Japan has revealed that in April they will introduce the full-model changed 7 Series, equipped with a newly developed V8 engine and 6 speed automatic transmission. Their sales target for the first year is 4,000 units and they hope to win 2,000 new customers to strengthen their presence in the luxury saloon market. They expect that demand for import luxury cars will continue to grow in Japan. Cadillac and Land Rover also plan to introduce the CTS and Range Rover from the end of this year. In 2003, Volkswagen plans to release a first luxury model (phaeton), equipped with a W-12 engine (420 hp). In the same year, DaimlerChrylser is scheduled to introduce the Maybach, which will be on the European market this year and annual production target is 1,500 units. Luxury cars are a very important aspects of establishing brand image so import car makers are trying to increase their sales share by focusing on luxury models.March 20, 2002LSI business integration by Hitachi and Mitsubishi Electric to further intensify the automobile microcomputer businessHitachi and Mitsubishi Electric have agreed on a joint LSI business and integration will be completed in one year. Despite "IT depression", the automobile industry is still in good condition and semiconductor makers think it is a stable market. They are hoping it will allow them to make up for their losses in other markets. Automakers also believe that semiconductors are vital to achieving high performance in environment, safety and information while maintaining low costs. In the global market, Hitachi and Mitsubishi Electric are ranked tenth and fourteenth companies while their combined sales are about $700 million. Integration of their LSI business will make them the fifth largest following Motorola, NEC, ST Microelectronics and Infineon.Early in the 1990s, Hitachi and Mitsubishi Electric were conducting their semiconductor business within their group companies (Hitachi with Nissan and Mitsubishi Electric with Mitsubishi Motors). However, globalization in the automobile market has forced them to restructure their business style. In the automobile microcomputer market, the wide diversity in applications is creating fierce competition. Semiconductor based microcomputers now control a wide range of feature including front view monitoring systems, vehicle dynamic control systems, airbags, car navigation systems, and electronic power steering, as well as diesel engine common-rail systems. Hitachi and Mitsubishi intend to use their superiority in multipurpose microcomputer systems to expand their presence in the automotive industry. Advertisement affects sales of HEVsHEV sales differ from model to model based on product competitiveness and the scale of advertising. The Toyota Estima sells well and its monthly sales are continuing at a high pace (around 2,000 units), which means that 1/5 total Estima sales are hybrid models. The Toyota Prius has also been enjoying continued high sales performance. On the other hand, the Crown with mild hybrid systems is showing weak sales and only accounts for 2.2 percent of total Crown sales (153 units monthly). Sales of the Honda Civic Hybrid, introduced last December, reached only half their initial target. Toyota and Honda think that weak sales of the two models are due to low recognition caused by the small scale of their sales promotion.Nissan to shorten full model change cycle for the MarchNissan has decided to shorten cycles for full model changes for the March. They currently pace an average cycle at 10 years, but starting with the next March they have decided to shorten model cycles in order to match the rapidly changing market trends. The average cycle for passenger cars is four to five years. In the small car market, global automakers are focusing on new model introductions in response to growing market demand. Additionally, harsher fuel and emission regulations make it difficult for Nissan to continue 10 year model change cycles. The decision is also based on expansion of joint development with Renault. Initially, Nissan aimed at creating unique image for the March as a basic car high in safety that users can own for a long period of time.Sancall to expand production in the USSancall, a spring maker, has decided to increase production items at Sanko Peterson in Indiana (SPC), their joint venture in the US. They currently produce ring gears and seat belt retractors. They plan to include engine valve springs next spring. Sancall exports valve spring materials to US spring makers who supply complete units to Toyota and Honda. In line with production expansion by Toyota and Honda in the US, Sancall has decided to start local production. SPC is scheduled to start additional facility investment (300 million yen), which is expected to expand the current plant area by 150 percent. At the same time, they plan to increase employees from the below 60 to over 80.Denso to start production of variable timing control units in HungaryDenso announced on the 19th that in August they will start production of variable timing control systems (VCT) at Denso Manufacturing Hungary (DHMU), their Hungarian plant. Denso is the top maker of VCTs in the global market and they currently produce units only in Japan. They will supply VCT systems to Toyota in the UK and France. They currently produce diesel injection pumps for Isuzu Poland. They have already started construction of additional facilities (32 million euros) and by the end of 2003 they plan to include engine control valve production. Their current sales are 60 million euros and they plan to double their sales.March 19, 2002Mitsubishi Z car clears ULEV levelsMitsubishi is scheduled to achieve ULEV certification for the Z car, which will be introduced in November this year. This will be the first time for Mitsubishi to clear ULEV levels. The Z car, a compact car, is also expected to clear 2010 fuel efficiency standards. Mitsubishi has lagged behind other automakers in clean technology and none of their vehicles were ULEVs. On the other hand, Toyota plans to achieve ULEV levels for their gasoline lineup by 2005 and Nissan intends to clear ULEVs levels for 80 percent of their vehicles by March 2003. The two companies also plan attain a 5 year early achievement of the new fuel efficiency standards. In order to catch up with the competition, Mitsubishi plans to achieve low emission levels 75 percent lower than regulated figures with the Z car by improving catalyst performance and engine control. In addition, they intend to increase fuel economy by improving engine and transmission performance in order to surpass fuel efficiency of the Honda Fit (Jazz), which is in the same segment as the Z car.Yanase absorbs Western CorporationOn the 18th, Yanase announced that they purchased Western Corporation, a special purpose vehicle and accessory sales company. Western was Yanase's subsidiary and had been importing and selling Unimog and its accessories. The merger aims at strengthening Yanase's capital as well as their financial sector and increasing import/sales efficiency. They plan to continue Western's business by setting up a new division. Western was established in 1950 by separating from Yanase. In 1952, they obtained import rights for Mercedes Benz and held them until 1987 when they returned the rights to Mercedes Benz Japan (now DaimlerChrysler). The merger brought Yanase's capitalization from 320 million yen to 440 million yen.Unisia Jecs to increase US productionUnisia Jecs has decided to modify their US production base, Unisia of Georgia. They expect supplies to Nissan and Ford will soon expand. In order to increase operation ratio of the plant to bring profitability, they will add production items. They are scheduled to assemble parts for valve timing control systems procured from their Mexican plant, which has reached maximum production capability due to increasing sales to Nissan and Ford. They also plan to shift production of propeller shafts for SIA from Japan to the US, which will also help cut transportation costs. Unisia has set a target for their Georgia plant to obtain profitability in FY 2005, but by strengthening the production system, they intend to achieve it one year earlier than planned.Toyota tries to take root in FranceToyota's production expansion in France is gradually contributing to sales increases. By 2005, they plan to achieve 100,000 unit sales. Due to restraints on supplies for Japanese cars in France (3 percent share), their dealers can make profits easily even if there's no discount although Toyota's sales share was around 0.85 percent for about 20 years. In 1997 they sold 25,000 units and the figure reached 56,000 units in 2001, which is about a 2 percent share. They think opening of their French plant greatly affected brand recognition. As a result, recognition ratio increased from 6 percent to 24 percent (Ford captures a 45 percent). In terms of sales network, they feel large scale restructuring of their dealers will be necessary. They currently have 170 main dealers and 300 sub-dealers. They have closed half due to changes in sales system and problems in the conventional sales operation. They are thinking about spending two years to replace 1/3 the current dealers with new dealers. To further increase sales, they are now working on introducing diesel lineup to meet needs in France and also plan to enter the fleet sales market by strengthening used car sales system that can sell over 70,000 units in 2005. In terms of sale strategy related to competition with Honda, who is concentrating on the European market, Toyota thinks that they won't be a threat in the French market due to their weak sales network even if the Jazz becomes a major competitor for the Yaris.Nissan becomes the second main share holder of ClarionAccording to announcement by Clarion on the 18th, Nissan sold a stake in Clarion as a part of Nissan Revival Plan and become the second largest share holder. As a result, Asahi Bank became the top share holder of Clarion with a 3.95 percent stake. Nissan sold 11 million stocks out of 17,922,435 they held and their stake into Clarion decreased from 9.96 to 3.71 percent. But Nissan plans to continue the current business relationship with Clarion for car audio units and start new procurement for car navigation systems.March 18, 2002Nissan to introduce CVT models in the USNissan has decided to introduce CVT models in the US. This is in response to growing concerns for fuel efficiency improvement in the US and CAFE (corporate average fuel economy) is expected to be applied to light trucks and other models. They are scheduled to release minivans, SUVs and pickups from 2003 in order to strengthen their US business. They will start production of new models at a new plant in Canton, which will start operation in 2003 and annual production is expected to reach 250,000 units. For the time being, they will import CVTs from Jatco TransTechnology in Japan. Nissan is currently producing automatic transmissions in the US but they have no plan for production expansion.Nissan March sells wellNissan to restructure chassisIn line with chassis consolidation with Renault, Nissan plans to review and modify their current chassis applications. They have shifted strategy from focusing on the domestic market to the world market. Usually, chassis size is larger in the overseas market even with the same size engine due to vehicle regulations and market needs. Nissan has developed a new method that can maintain the same performance while applying a chassis used in smaller models. For example, they will adopt a chassis used in the March for the Sunny, which currently uses a chassis originally designed for 2.5 liter models. By modifying chassis applications, they intend to achieve weight reduction and high fuel efficiency while meeting demands in both domestic and overseas markets.Government to set up safety standards for FCEVsThe Ministry of Land, Infrastructure and Transport has announced that they will establish safety standards for fuel cell electronic vehicles by the end of 2003. Honda and Toyota are conducting public road tests and Mazda and DaimlerChrysler finished tests last August. The ministry plans to collect data from automakers to use them for collision safety standards of hydrogen and methanol tanks, pipes and electronic systems. The ministry is considering setting up technological guidelines for FCEVs similar to that previously established for CNG applications.Honda to add a 1.5 liter engine for the FitHonda plans to add a 1.5 liter engine for the Fit, a small car, this summer. They initially planned to introduce a 1.5 liter version in February but they could not catch up with growing sales of the Fit. Their decision to add the engine follows creation of a schedule to establish a larger production system capable of handling 25,000 vehicles. They intend to compete with the 1.5 liter engine equipped Toyota Vitz RS, which Toyota lowered the sticker price on. Currently the Fit is only available with a 1.3 liter engine. To meet growing demand for higher performance from male users, they have decided to increase engine size. The engine will be i-DSI engine, the same design as that used in the 1.3 liter engine.Hino to supply parts to Toyota in AsiaHino plans to start supplying parts for multi-purpose vehicles to Toyota in Asia from 2004. Parts will include accelerators and suspension parts from their Thailand plant. Hino is experienced at producing Toyota pickups and parts in Japan. They currently produce the Toyota Hilux (110,000 units annually) and pickup trucks account for about 80,000 units (most of them are exported to Middle East and other Asian nations). In line with Toyota's decision to cancel domestic pickup truck procurement in 2004 and concentrate on production activities in Thailand, Hino plans to strengthen unit production by strengthening their current Thailand plant in order to maintain profit. Toyota currently sells and produces the TUV, a multi-purpose vehicle, in South East Asia and plans to consolidate basic design of the TUV and standard pickup trucks, which are also popular in Thailand.Aichi Machine Industry to design engine production line for GM Holden AustraliaAichi Machine Industry has received orders for engine production line design from GM Holden Australia through Marubeni. This is first time for them to design engine lines outside Nissan. Aichi Machine will take charge of core elements of engine lines, including machine processing. They are currently designing and choosing machine tools in Japan. They plan to start construction and production preparation in Australia by the end of this year. With Nissan, they stopped production of the Serena last March and they are now concentrating on compact gasoline engines, manual transmissions and CVTs. Nissan feels Aichi Machine Industry plays a major role in compact gasoline engine development for Nissan/Renault global strategy. Aichi Machine intends to aggressively expand their sales to not only Nissan/Renault but also other automakers inside and outside of Japan.March 15, 2002Mitsubishi to continue sales of the Challenger in the USMitsubishi has decided to continue sales of the Challenger (Montero Sports) in the US until 2004. They are scheduled to conduct a full model change to the model next year. Because sales of the current Challenger in the US are at a high level (figure reached 61,000 units in 2001 and monthly sales in Jan. and Feb. in 2002 were 5,000 to 6,000 units), they have decided to continue its sales. The new Challenger will be equipped with a newly developed platform designed exclusively for the North American market and used also for passenger cars. They currently produce the model at Pajero Manufacturing (their subsidiary) and majority of their products are exported to the US (their monthly production is 5,000 to 7,000 units). In the US, SUV sales have been increasing despite sales slump in the entire US automobile market and other Japanese automakers are concentrating on strengthening their SUV lineup. In response to this, Mitsubishi also plans to introduce the Airtrek (a crossover SUV) and export 40,000 units to the US market annually. As a result, their SUV lineup will expand to four models next spring.Nissan announces management changesIn order to achieve targets in Nissan 180, their 3-year business plan, Nissan has decided to conduct management changes. Mr. Todao Takahashi, SUP, will succeed Hisayoshi Kojima and will be appointed as EVP for Manufacturing and Supply Chain Management. Mr. Kojima will become president of Jatco. In engineering field, Mr. Iwao Nakamura, SUP, will assume president position of Nissan Diesel Motor Co., Ltd. For the overseas market, Nissan is scheduled to establish new division for Chinese business and Katsumi Nakamura will head the team. They will also set up Global Aftersales Division to strengthen their global sales and marketing. In other changes, Mr. Masahiko Aoki is proposed as president of Nissan Koei and Mr. Ryoso Kodama will become president of Nissan Trading Co., Ltd.U-shin to expand overseas business for keysetsU-shin, a leading keyset units maker, has decided to reorganize their overseas business. In line with sales increases from GM and Ford group companies (especially after 2003), they plan to concentrate on production in Thailand, Hungary and China. Although concerns for hollowing out in Japan arise, sales increases are expected to help maintain the current production condition. In China, they are scheduled to start exporting keysets to Japan due to low labor costs. This is the first time for them to import products from their overseas plant. Sales target for their Chinese plant is 3 billion to 5 billion yen ($38 million, $1=130 yen), which is the same as a sales target of their Hungary plant. For other products, they have recently put funds into Ansei and formed an alliance (including absorption of Ansei's subsidiary) for door latch units to keep up globalization of the automotive industry.NGK Spark Plug to strengthen sensor productionNGK Spark Plug, the world top oxygen sensor maker, plans to greatly increase automobile sensors. By 2005, they are scheduled to achieve 50 million unit sales. In order to achieve this goal, they plan to start production in Europe and increase facility investment into their domestic and US plants. They have set 2002 production target at 33 million units in Japan and US, and they expect a 20 percent year-to-year increase in sales after 2003.Japanese parts markers shift production to ChinaIn response to automakers expansion to China, parts makers have started shifting production to China. This is not just because they are following automakers expansions but also seeking ways for cost reduction. Despite concerns for hollowing out in Japan, they are forced to increase production in China in order to survive in the recent tough cost competition. Parts makers in the Toyota group have started construction of new plans in China to deal with start up of Toyota's vehicle production in Tianjin. Honda's parts makers are also expanding production in Guangzhou, China in line with Honda's production increases of the Accord. Chinese expansion by Toyota and Honda is almost the same as in North America and Europe. However, expansion to China by Nissan is different. They are aiming at cost reduction by shifting production from Japan to China where labor costs are 1/20 to 1/30. Unisia Jecs has recently established a project team for Chinese business and other parts makers in the Nissan group have also started shifting production to China and export products to Japan. Even with transportation costs, costs are expected to be reduced by 30 percent. Nissan, who has succeeded in earlier achievement of a 20 percent cost reduction, is planning for an additional 15 percent reduction in three years starting next FY year. To meet their need, parts makers have no choice but shifting production to other countries where labor costs are low, including China, even if there are growing risks for hollowing out in Japan.March 14, 2002Honda to set clean direct injection gasoline enginesHonda has revealed that they will set newly developed clean direct injection gasoline engine for their 2003 models. The new engine will have a 20 percent higher driving efficiency while achieving an ultra-clean emission level that is about half the regulated levels. They intend to get ahead of other automakers in commercialization of clean direct injection gasoline vehicles after originally postponing them. Honda has already completed clean technology for direct injection engines, however high development costs and difficulties in achieving high clean levels for NOx have hindered commercialization. By improving lean Nox catalysts for the Insight, they have finally decided that they can solve these problems. With a new layout for fuel injection system installed at the middle of a combustion room, they have made it possible to achieve over 90 percent for lean burn operation driving at a normal mode.Chevrolet Cruze to appear on the Thai marketGM has announced that they will start production of the Chevrolet Cruze, a model jointly developed with Suzuki, at GM Thailand in 2003. They plan to introduce the model to the Thai market under the Suzuki brand. The model is scheduled for introduction in other ASEAN nations. Currently, GM Thailand, located adjacent to AAT (a joint venture between Ford and Mazda), produces the Chevrolet Zafira, which is also sold in Japan under the name of the Traviq by Fuji Heavy Industries. They plan to expand sales in Thailand where vehicle sales are still low. GM Thailand also plans to expand production lineup beyond the Chevrolet Cruze.Isuzu to reduce large vehicle types for overseasIn line with implementation of emission regulations, Isuzu has decided to reduce specifications by 30 percent in order to cut costs. Due to tough emission regulations worldwide, automakers are forced to spend a large amount of money on clean technology. Isuzu has been exporting parts to their overseas assembly plants and modifying specifications to meet needs in each country. However, it has become a burden due to cost increases. In their V Plan (business restructuring plan), Isuzu has decided to concentrate on cost reduction, including integration and reorganization of current models while keeping up with the latest regulations.Mitsubishi Electric tries to achieve a 50 percent world share for ECUMitsubishi Electric plans to achieve 500 billion yen in sales for 2005 ($3.9 billion, $1=130). They are currently the top electronic appliance maker in the automotive industry and they earned 337 billion yen ($2.6 billion) in 2000. In order to further expand sales, they plan to concentrate more on IT product development, including inverters, hybrid vehicle related products, and ITS systems. They also plan to expand sales to DaimlerChrysler and other automakers while continuing partnership with Mitsubishi by providing highly competitive and low priced products. For EPS motors and ECU system, which they have the top share in Japan, Mitsubishi plans to target the Japanese and European markets and by 2005 they intend to achieve a 50 percent share in the global market.Matsushita Communication Industrial to consolidate platform for DVD navigation systemsMitsubishi has decided to develop a new DVD car navigation system platform and share it between different models in order to reduce development costs. They have designed platforms for each model. Recent cost reduction movements in the automotive industry have forced them to cut costs and reduce prices and they have concluded that platform integration is an inevitable step along the path to achieving an efficient ratio for development costs. They hope to restrain development costs to ten percent of the retail price. Usually, makers spend about 5 billion yen per system for navigation system development, which is well over 10 percent of standard retail prices. Figures for car audio systems, on the other hand, hover right around 2 percent.Government reveals test models for handicapped peopleOn the 11th, the Ministry of Land, Infrastructure and Transport unveiled test taxies and route buses for handicapped people. Last autumn, the ministry formed barrier-free vehicle standard investigative commission. In their project, they aim at reducing vehicle prices by standardization and increasing user-friendliness by normalizing wheelchair fixed method and other interior layouts. For route buses, the ministry adopted a design for vehicle height adjustment system along with handholds and buzzers that are user friendly for both handicapped people and those who are not handicapped. They used minivan-based taxies, which are equipped with wider slide doors from which people with wheelchairs can get in. The taxi can accommodate four people and one wheelchair. One of problems that have to be solved is wheelchair hold-down method. A method using several fixtures is difficult for users to handle while the mechanical type limits the variety of wheelchair types.March 13, 2002Mazda to strengthen diesel engine development for commercial vehiclesMazda has decided to shift all diesel engines for commercial vehicles to clean type by expanding application of direct injection systems. In order to increase efficiency, they have already started procurement of diesel engines over 4 liters from Isuzu. After Ford and Peugeot formed an alliance for diesel engines, Mazda has been forced to modify their diesel engine strategy, including cancellation of a part of inhouse production and procurement from OEM units from Ford and Peugeot. In addition to these efforts, they plan to improve their current diesel engines (2-3 liters) by adopting new technologies and improving the current common rail high pressure injection systems. From 2005 to 2007, exhaust regulations in Japan, Europe and North America are expected to become even more severe. In these conditions, improvement of engines, especially diesel engines, is inevitable for automakers to survive in the industry. For passenger cars, Mazda has already established clean diesel engine production methods and cleared the next exhaust regulations in Europe with newly developed diesel engines used for the Atenza.Truck makers concerned about further sales declines in 2002Although domestic large vehicle makers are expected to maintain profitability for FY2001, delay in implementation of Nox and PM regulations would negatively affect the market. Truck makers are also concerned that the new regulations are expected to be the toughest in the world and they would have to invest a large amount of money in clean product development. In long-term exhaust regulations, which will take effect in 2005, allowable Nox levels will be half the current figures and PM figures are also reduced by 85 percent.Truck sales have started declining sharply since 2000 and the figure dropped to 77,000 units from 195,000 units in 1990 when regulations for the entry into the transportation business were relaxed. In addition to decreasing demand from the transportation business, an increasing number of construction companies have been filing for bankruptcy due to disposal of the bad loans by banks. If these conditions continue, truck makers will lose credibility which would lead to worsening business performance, as a result they may be forced to conduct the industry restructuring. Government to reorganize sea lane infrastructure for steel scrapThe Ministry of Land, Infrastructure and Transportation has revealed that they will reorganize sea transportation systems for steel scrap. The new sea lanes will lead from big cities to domestic steel makers and other Asian nations. About 20 percent of total steel scrap (equivalent to 7,670,000 tons) in Japan is generated from the automotive industry. The government also plans to improve the current ports and construct terminals. They hope that the new system will help increase exports to Asia where economy is dramatically growing. The new system is also expected to help automakers reduce recycling costs.Yazaki to commercialize cable/connector for "MOST"Yazaki has announced that they will start sales of optical cables and connectors for "MOST", the latest standards for optical communication for vehicles. By linking about ten different on-board units with LAN, "MOST" makes it possible to increase data transmission by 420 percent, compared to D2B, another optical communication protocol for vehicles. Yazaki has experience in supplying D2B cables and connectors for the Mercedes Benz SLK and Jaguar S Type. They plan to produce MOST cables and connectors produced at Yazaki Wire and supply them to automakers and on-board unit makers. For wire harness makers, MOST will be the key to pave the way for expanding sales fields.Showa Denko supplies heater core units to GMShowa Denko has started supplying heater core systems to GM. They assemble heater core units produced at their Thai subsidiary (Showa Aluminum Thailand) in order to reduce costs, and combine them with evaporators at their US plant in Ohio. Total supplies will reach 240,000 units annually. This January, they shifted six percent of air conditioning condenser production to Thailand. Showa Denko started production of the system at the end of last year and monthly production is 20,000 units.Mitsuba tries to prevent hollowing out in JapanMitsuba, an electronic unit maker, is trying to maintain domestic business while making good use of their overseas plants. Their R&D costs have been increasing and about 7 percent of their total sales is used for R&D, which is mostly conducted in Japan. In order to avoid hollowing out in Japan, they plan to establish a system that can bring cash from overseas by focusing more on their major products, including power slide doors and expanding to new products. Their slide doors are used in the Honda Odyssey and Stepwagon. Their overseas business, mainly in the Philippines, Vietnam and the US, has been in good condition. In the US, their sales to Honda have been increasing. They will soon start operation in India and Hungary. In China, they have three plans and they plan to start production of shift tube-shaped fan motors for commercial vehicles, which was an unprofitable product in Japan.March 12, 2002Used car sales in February dropJADA announced on the 11th that used vehicle sales in February declined by 3 percent to 432,066 units. The figure fell for the first time in two months but it is still higher than new car sales (3.2 percent higher). Used passenger car sales decreased, for the first time in two months, to 374,452 units (up 1 percent to 148,357 units for standard and down 5 percent to 226,095 units for compacts). Declines in compact car sales were mainly due to the lack of trade-ins. Used cargo vehicle sales also decreased by 4.1 percent to 44,680 units. On the other hand, used bus sales increased by 6.8 percent to 1,054 units.
Fuji Heavy Industries to use GM network the Korean and Thai marketsFuji Heavy Industries plans to enter the Korean and Thai markets by taking advantage of GM's established sales network, GM AutoWorld. They will soon start researching the market and they hope to start sales of Subaru vehicles this year. Although they have started sales of their vehicles through GM AutoWorld in China and Taiwan, they have not expanded to most Asian nations. This is partly due to a history of concentration in Europe and North America in addition to difficulties in keeping up with different market needs in Asia. After forming an alliance with GM, they have started sales of the Forester in the Philippines and Indonesia. In Korea, where import cars from Japan were prohibited until 1999, Toyota is the only Japanese company conducting business. Fuji Heavy Industries has revealed in their Rolling Plan (a mid-term business plan) that they will achieve 450,000 unit sales by 2005 in the global market (up 61.8 percent compared to figures in 2000). In the plan, they will target 200 percent increases (95,000 units) in export markets outside North America and Europe.Mitsubishi shows aggressive business performance in the USIn 2001, sales of Mitsubishi vehicles in North America reached the highest ever of 322,000 units, which is up 1.9 percent on year-to-year comparison. In January and February this year, sales increased by 20 percent due to the introduction of the new Lancer. They hope their new entry into Canadian market will contribute to a 5.5 percent sales increase this year (340,000 units).In 1997 when Mitsubishi appointed a new president for MMSA, Mr. Pierre Gagnon, their sales share in North America was only 1 percent (190,000 units sales). This is rare for an automaker who has been in the market for more than 17 years. Their inventory at that time was 1.5 to 2 times the average industry number. They used seven different publicity agents and their recognition rate was 44 percent. In order to break this vicious circle, in 1998 Mitsubishi established a new brand identity as "high quality", "high value added" and "unique design and high driving performance". They also chose to entrust their entire campaign to a single publicity agent. These changes allowed them to achieve a recognition rate of 59 percent in 2001. Mitsubishi is emphasizing that they have succeeded in capturing young buyers. Their 38 percent of customers are below 35 years old, which is the highest among Japanese brands. For those under 20, they have achieved 1.47 percent. They concluded they have succeeded in securing future buyers for decades ahead. Adoption of internet dealer order system has dramatically shortened inventory cycles (6 months to 2 months). President Gagnon said that their business system has shifted from defensive to aggressive. They have also been concentrating on expansion of sales networks. They have increased brand specific dealers by 70 percent among 590 dealers. They are also focusing on opening their dealers near showrooms of other Japanese models, including Toyota, Nissan and Honda, in order to provide customers an easy access for comparison. In 2002, Mitsubishi plans to open 24 additional dealerships and introduce a new cross over model, the Airtrek, to lure young people and woman buyers Cemedine Henkel to restructure production system overseasCemedine Henkel, a joint venture between Cemedine and Henkel (German company), has decided to reorganize their automobile adhesive material in Asia and North America where the two companies have their own plants. In the next few years, they plan to consolidate Cemedine's companies in Thailand and Taiwan and Henkel's US business in order to increase market efficiency for their automotive related products. By combining their strengths, they plan to propose products with latest technologies to automakers, mainly Japanese makers. Cemedine Henkel was established in 1999. Cemedine (the top domestic industrial adhesive maker) owns a 67 percent stake while Henkel owns a 33 percent stake. They are scheduled to accumulate their technologies to provide them to their overseas plants and Henkel to strengthen global business.March 11, 2002Nissan entry into subcompact market intensifies competition
Automakers have been depending on specialized, non-brand specific dealers for subcompact sales. They have attached importance on product competitiveness instead of sales competitiveness. However, Honda and Mitsubishi have started increasing vehicles handled by their own dealers. Suzuki also plans to encourage sales expansion through their Arena dealers, which handle compact cars. Competition between brand specific dealers and specialized dealers is expected to drastically change. Hitachi to supply throttle bodies to GMHitachi has received orders for electronic control throttle bodies from GM in the US. The unit, combined with a microcomputer, will be applied to GM's 2003 passenger car. Supply is scheduled to start near the end of this year and annual supplies to GM are expected to reach over 1 million units in a few years. Hitachi has been supplying throttle chambers to GM for over 10 years. In response to GM's request to increase fuel efficiency and clean levels, Hitachi has proposed a custom electronic control unit. Their units are already used by domestic automakers (mainly Nissan). They plan to produce the unit in Japan and export it to the US. In 2003 they also plan to start production at their HAP plant in Kentucky (US).Establishment of fuel infrastructure hinders FCEV expansionAt FCEV international Symposium held by the Ministry of Land, Infrastructure and Transport on March 1, FCEV makers, including Toyota, Honda, Mazda and GM, revealed their concerns for fuel infrastructure. FCEV is a major candidate for a next-generation fuel source capable of replacing both gasoline and diesel powered vehicles. At this stage, Toyota and GM have chosen gasoline reform method while Mazda, Ford and DaimlerChrysler have developing based on methanol reform method.However, Toyota and Mazda are now attaching greater importance to using non-reformed hydrogen. According to Toyota's plan, first stage requires non-reformed hydrogen stations to be established in big cities while in other areas the current gasoline stations would provide gasoline reformed hydrogen in order to expand FCEV sales. Mazda has announced that there are many hurdles to clear in terms of cost and quality performance for methanol reforming method and they have concluded that liquid hydrogen performed the best in their experiments. FCEVs introduced by Toyota and Honda in 2003 are expected to be pure hydrogen vehicles for limited use. The most important problem is fuel infrastructure. According to Honda, who has built their own hydrogen stations in the US, it is impossible to establish infrastructure in Japan due to excessive regulation. Although deregulation has been gradually expanding in Tokyo area, severe regulations still exist that hinder establishment of hydrogen stations. Automakers are now faced with mounting problems to solve before FCEV introductions. Sales of the That's reach 10,000 units in one monthFuji Heavy Industries and GM form a financing alliance in AustraliaOn the 8th, Fuji Heavy Industries announced that they agreed with GM on an automotive financing alliance in Australia. In their contract (valid for three years), Subaru Australia and GMAC Australia, GM's finance company, will jointly conduct business in Australia. This is the third country where the two companies have made an alliance. The contract stipulates that GMAC Australia will provide Subaru dealers with dealer financing, consumer loans, leasing and insurance plans under the name of Subaru Finance. By taking advantage of GMAC's enormous financial power, they intend to reduce procurement costs. Currently, Fuji Heavy Industries has a 3.5 percent sales share.March 8, 2002Mitsubishi to offer various color paints for trucksMitsubishi plans to offer color painting for trucks. By providing painting inhouse, they plan to offer lower prices to customers. Usually trucks are painted in all white and most truck users entrust painting to body makers. Mitsubishi has recently adopted a multi-color painting system that makes it possible to provide various body colors and can shift painting colors automatically. It can also clean paint remaining inside pipes and handle over 10 different colors. Therefore, it will dramatically increase efficiency. Patents associated with the new process have been applied for and are still pending. Average painting price per truck is around 200,000 yen while with their system the price will be lowered to 40,000 to 60,000 yen. They started using the system with the 2002 Fighter, a mid-size truck, and plan to expand its application to small and large trucks.Toyota sells used cars in TaiwanToyota has started used car sales in Taiwan in response to declines in new car sales due to economic downturn. In line with Chinese entry into WTO, Japanese vehicle sales in Taiwan are expected to increase. They have opened three used car shops. Used car sales in Taiwan have surpassed new car sales and reached 680,000 units. On the other hand, new car sales in 2001 dropped by 17 percent to 347,000 units. Toyota's sales also declined sharply (down 16 percent to 77,000 units). Despite an expanding used car market, new car sales are expected to continue decreasing.Nissan to start telematics service in the USNissan plans to start telematics service in the US two years from now. They started the service at low costs with the new March and plan to expand it to their entire lineup. They also plan to provide reasonable service overseas to lead to sales expansion. In the US, Nissan provides an information service for owners of the Infiniti, which offers mainly roadside service through the operator. Their telematic service uses the latest digital communication technology to provide a variety of information from maps to email service using both video and voice. They have set the price at 50,000 yen ($390, $1=128 yen) for on-board systems (CarWings) for the new March. CarWings enables high speed data transmission. In the US, Nissan plans to use the Wing Cast information communication service. They are also thinking about expanding the service in Europe.Bridgestone to expand alliance with Continental for run-flat tiresOn the 7th, Bridgestone announced at a press conference at Geneva Motor Show that they will form a consolidated technological alliance for run-flat tire development with Continental. The new alliance will include an EMS system development (Extended Mobility System) which consists of tire air pressure monitor system, sealant tires, sealant kits and afterservice systems. The two companies have already completed prototype units and they are now displaying safety ring run-flat tires by Bridgestone and self supporting run-flat tires by Continental at their own booths at Geneva Motor Show. For support ring run-flat tires, which the two companies have been jointly developing, they have set a new consolidated logo in order to expand the support ring run-flat tire market.Matsushita Communication Industrial tries to triple car audio unit sales shareMatsushita Communication Industrial (National) intends to triple their sales share in the world market. They plan to introduce low price units (average of 10,000 yen) in Europe and North America to achieve a 15 percent share. They are scheduled to start with the US with a new product with improved sound. They currently concentrate on sales of visual products of price at over 50,000 yen for the North American market (available only through luxury car audio shops). Their sales share in Japan is 10 percent while the figure in the global market is 5 percent. Pioneer, Sony and Japan Victor (Japanese leading maker) have around 15 percent share each in the global market. To catch up with them, they plan to start sales of reasonable price units (about $100) based on shared platforms and expand production in China.Toyota Estima to be categorized in standard passenger carToyota and Japan Automobile Dealers Association have agreed to categorize the Estima as a standard passenger car in line with its next full model change. Most automakers categorize their lineup according to chassis-based inhouse classification method. The first Estima, introduced in 1990, was equipped with commercial vehicle platform and Toyota categorized it in the small truck group. They did not change category of the Estima even after its full model change conducted in January 2001. Toyota has recently modified categories of their lineup, especially for one-box cars and the Noah/Voxy, introduced last year and having small truck chassis, is categorized in compact passenger cars.March 7, 2002Honda to regard the Civic as their flagship clean modelHonda plans to modify the lineup for the Civic to make it their flagship clean car. Honda has applied clean technologies such as hybrid systems and CNG systems to the Civic prior to their other models. As a result, the model was awarded low emission levels in the latter half of 1990, far ahead of models of other automakers. With the rise in popularity of minivans and competitor's products, sales of the Civic have not grown as fast as expected. The Civic has been their flagship model ever since its debut in the 1970s. Sales in 2001 were 42,000 units, about 30,000 units lower than their target. Honda intends to shift the image of the Civic to environmentally friendly and concentrate on diversifying application of the platform used in the Fit, making it their lead seller.Import car sales in February declineAccording to JAIA, import car sales in February decreased by 4.4 percent to 20,129 units (see table for Import Car Sales in February 2002). The figure declined for six months in a row. Sales of import cars, excluding those made by Japanese makers, also fell by 4.9 percent to 18,848 units. Passenger cars accounted for 18,503 units (down 4.0 percent) and truck sales were 345 units (down 38.3 percent). The top brand was Volkswagen followed by Mercedes Benz and BMW. All top three brands showed sales decreases. Sales of Volvo and Opel plunged while figures for Peugeot, Audi, Alpha Romeo and Jaguar jumped due to aggressive restructuring of their sales network.Toyota to conduct monitoring tests of DPNR systems in EuropeOn the 6th, Toyota announced that they will start monitoring tests of their newly developed catalyst systems (DPNR) in seven European countries. The tests will be conducted for one and half years until 2003 with 60 Avensis model cars equipped with diesel engines. Toyota announced the newly developed catalyst system in July 2000. The system features a simple, compact catalyst unit based on the latest common rail electronic control injection system and makes it possible to continuously purify PM and Nox at the same time. They plan to use data accumulated through the tests to help expand diesel vehicle sales in the market.On the 6th, Denso and NGK announced that they developed a diesel particulate filter (DPF) for Toyota vehicles. Toyota is scheduled to start DPNR tests in Europe. The two companies plan to supply their DPF for the tests. Denso's DPF is a honeycomb type consisting of 1,000 cells (1mm per cell) and was developed based on their ceramic technology for gasoline engines. The DPF system developed by NGK is a revised version of cordierite diesel particulate filter with optimized porosity and pore size distribution for high purification performance. Toyota plans to use 30 units each for their test models. Development of Nox deoxidization system was conducted by Cataler.
Corolla returns to the top in FebruaryJADA announced sales ranking for February on March 6. The Toyota Corolla returned to the top place for the first time in four months and Honda Fit, the January top model, became the second. Toyota showed their strength by capturing 6 places in the top ten.(See table for Model Ranking in February 2002) Ratio for automatic transmission vehicles increasesAAccording to JADA, the number of registered passenger cars equipped with automatic transmissions (excluding import cars) in 2001 increased by 3.3 percent to 2,555,328 units, which accounts for 93 percent of total passenger cars. Ratio for automatic transmission vehicles is 97.2 percent for Honda (up 3 percent), the highest among domestic automakers, and 94.1 percent for Toyota and Isuzu. On the other hand, Mitsubishi, Suzuki and Daihatsu showed decreases and the figure of Fuji Heavy Industries was the lowest with 75.6 percent. In 1992, the number of automatic-equipped passenger cars was 2,614,297 units, which accounted for 74.7 percent.Aisin Seiki tries to focus on unique product developmentAisin Seiki has been concentrating overseas expansion but their sales ratio is 14 percent, far below figures of Delphi, Bosch and Denso. To increase the figure, they are now proposing their parts (starting with body parts) to overseas makers. In Europe, they think expansion of their current UK plant is impossible and they are considering ways to conduct business there including expansion to the European Continent. Through an alliance with Excedy, they are scheduled to use their overseas bases, which are located in countries where Aisin Seiki does not have their own plant. In order to establish strong business, they are now focusing on new product developments that will establish their uniqueness in comparison with other makers. For their new product parking assist monitor system, they invested large amounts of time and money. They are also thinking about developing products outside the automotive industry and plan to increase sales ratio for those products to 15 percent.March 6, 2002Toyota aims for a 60 percent increase in FCEV fuel consumption efficiencyToyota has revealed that they plan to achieve increases in fuel consumption efficiency by 60 percent with their first commercialized FCEV in 2003. The figure is equivalent to 380 percent and 200 percent increases compared to gasoline and hybrid cars. At the same time, they plan to consult fuel refining companies about developing ways to avoid reductions in energy that occur when using hydrogen as a fuel. Hydrogen fuel efficiency is only 58 percent while the figure for gasoline is relatively high at 88 percent. Their FCEV (FCHV-4) is equipped with secondary batteries to recycle kinetic energy which is also used for hybrid vehicles. With this system, fuel consumption efficiency was increased by 50 percent. Toyota plans to develop a new stack that can increase electrolytic efficiency, improve aerodynamic characteristics and reduce vehicle weight.Nissan to increase production of the MicraNissan has announced that they will produce 170,000 Micras (March) annually in the UK. The figure is 20 percent higher than the figure in 2001. In Europe, their business has been in the red and this year they expect to return to profitability through cooperation with Renault. Nissan used a shared chassis for the new Micra and increased parts procurement from the European Continent to 70 percent (purchases are conducted based on the euro). To meet demand in Europe, they will offer both gasoline and diesel engines while achieving the latest clean levels. They also intend to request preferential tax for clean vehicles and restructure their sales network in order to achieve sales increases of 20 percent. Nissan plans to increase annual production capacity of the UK plant to 500,000 units by adopting three-shift workforce.Next long term exhaust levels expected to be the toughest standardsAccording to a proposal for "guidance of future vehicle emission countermeasures" from Central Environment Council, figures and evaluation methods in the next long-term exhaust regulations will set the toughest levels ever. After causal relation between SPM and human health was accepted in court, the government has been working hard on PM reduction measures. As a result, new figures in the regulations will be set at levels that will be hard to achieve by automakers. PM reduction ratio will be 85 percent for diesel vehicles and NOX reduction will be 50 percent for both diesel and gasoline vehicles. For evaluation tests, transient mode (instead of 10-15 mode) will be adopted. Transient mode tests will require severe restrictions on difficult to control items, including emissions during cold start and time standards twice the level of 10-15 mode tests.Webasto Japan to supply combustion heaters to Nissan DieselWebasto Japan has revealed that they will start supplying truck combustion heaters to Nissan Diesel as dealer options in April. Installation of the unit will be available at Nissan Diesel dealers. They expect demand for combustion heaters will expand due to its ability to help increase fuel efficiency. Combustion heaters are built-in type and use gasoline or light oil for fuel, which allows drivers to sleep while using heaters without running their engines. It also makes it possible to stop for extended periods of time without idling the engine. Average price per unit is less than 200,000 yen. They have air heaters and water heaters and plan to expand sales to other companies.Small car makers seek new ways of creating added valueAs competition in the small car market intensifies, automakers have started looking for ways to lure customers with new concepts. Honda has developed the That's under the concept of "house ware". Suzuki has also adopted the same concept for the Lapin. Nissan has developed the March under a new concept that users will feel it is "part of their daily life". With the new March, users can get information through cellular phones, which have become a common fixture of modern life. Automakers expect these new concepts will help attract woman buyers who have little interest in cars.The current boom in fashionable small cars was started with the introduction of the Toyota Vitz, followed by the Honda Fit. Last autumn, Mitsubishi introduced the eK wagon (subcompact). Automakers are now focusing on concepts developed around "adding new color to daily life". In line with this they are offering a variety of body colors for users to choose from, the same as if they were choosing house ware. JAMA to facilitate preferential tax for car buyersAs part of economic boosting measures, JAMA plans to request the government to provide preferential tax for car owners who buy new cars. This is in response to decreasing new car sales for the sixth straight month. If it continues to decline, it will heavily affect overall economy. Conventional preferential tax systems related to automobiles are for vehicles over 3.5 tons and clean vehicles, including electronic vehicles and hybrid vehicles. JAMA is currently analyzing relation between market and tax revision and they are also studying incentive tax measures in Europe.March 5, 2002Honda to double production of CVT metal beltsHonda plans to double production volume for CVT metal belts in FY2002 (starting from April). Total production is expected to reach 20,000 units monthly. This is in response to increasing sales of small cars equipped with CVTs, including the Fit (Jazz) and Mobilio. They started production of CVT belts last October at Honda Engineering with monthly sales of 5,000 units. This January, they also started production at Suzuka Seisakusho, and as a result, total monthly production has reached 10,000 units. They plan to establish a stable production system by expanding inhouse production in addition to continuous procurement from Van Doorne in the Bosch group.Hino develops US modelsHino has started development of new models, exclusively for the US market. They have been proceeding with joint project with Toyota and through the alliance they have decided to start production of a mid-size truck for the market by 2004. In order to improve profit management for both overseas and domestic markets, they plan to separate management in each market. By doing this, they can easily integrate or cancel their domestic lineup and they can also develop products that meet the market needs.
On the 5th, Mitsubishi announced their lineup for 72nd Geneva Motor Show. They plan to display four concept cars, including the Pajero Evolution 2+2, 2 motor sports models and 13 other models. The Pajero Evolution 2+2 (picture on the right) is based on the Pajero Evolution concept car, revealed at 2001 Frankfurt Motor Show. The model, an SUV, is equipped with a 4.7 liter V8 engine, super select 4WD (SS4) and a combination of active center differential + active yaw control (AYC) used in the Lancer Evolution. |
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-Mitsubishi announced the introduction of the Aero Midi ME, a small non-step route bus, on April 23 (picture on the right).