Auto news from Japan - February 2002

Daily News---February 2002

February 28, 2002

Nissan to integrate chassis for luxury minivans

Nissan has revealed that they will consolidate chassis for their luxury minivan lineup. They plan to integrate chassis of the Elgrand and Quest and shift to Altima based platform in line with model changes. By integrating chassis for their major US models, they intend to achieve development and production efficiency while updating the driving performance. At the same time, they hope to strengthen competitiveness in both the Japanese and US market. Automakers have been shifting from commercial to passenger car based development for their minivans and Nissan has completed the shift for their compact minivans. In line with their decision, they are scheduled to adopt FF layout for the Elgrand. For the Quest, they have already decided to cancel joint development with Ford from the next generation model and they plan to use the Altima based platform while continuing the current design exclusively for the US market.

Export figures in January increase

On the 27th, JAMA announced that car exports in January 2002 increased, for the first time in three months, by 5.8 percent to 328,016 units. Figures for North America and Europe grew for the first time in 2 months and 27 months respectively (up 9.9 percent to 15,1874 units for North America and up 12.5 percent to 79,330 units for Europe). In addition to yen's depreciation, sales growth of Japanese cars in North America and completion of inventory adjustment in Europe contributed to achieving this increase. For the North American market, Toyota, Honda and Mitsubishi showed strong sales and for the European market, export figures of the Toyota RAV4 and Honda Fit went up. On the other hand, exports to other Asian nations plunged (down 31.8 percent to 20,847 units) due to economic slowdown and increases in local production. Figures for standard passenger cars jumped (up 12.5 percent to 179,024 units) for the first time in two months while compact truck figures dropped sharply (down 19.4 percent to 4,024 units). Total export figures in dollars are $4.8 billion for vehicles and $1.4 billion for parts (up 5 percent).

Export figures in January 2002

-	Passenger cars	Trucks	Buses	Total	Comparison Jan.01
Toyota	113,270	14,668	1,591	129,529	116.3%
Nissan	32,134	8,124	640	40,898	96.5%
Mazda	39,440	457	-	39,897	96.6%
Mitsubishi	26,373	2,082	289	28,744	89.7%
Isuzu	991	9,093	164	10,248	85.7%
Daihatsu	3,170	912	-	4,082	84.5%
Honda	35,838	-	-	35,838	120.7%
Fuji Heavy	13,055	-	-	13,055	102.9%
UD	-	732	30	762	166.0%
Hino	-	972	214	1,186	79.8%
Suzuki	22,428	1,349	-	23,777	108.5%
GM	-	-	-	-	-
total	286,699	38,389	2,928	328,016	105.8%

NKK starts public road tests for DME vehicle

On February 27, NKK started public road tests for Dimenthyl Ether (DME) vehicles by obtaining a number plate from the Ministry of Land, Infrastructure and Transport. Their DME vehicle was developed based on the Isuzu Elf, introduced in 1988 when PM regulations had not been implemented. NKK used the conventional diesel engine, and applied DME fuel tank (62 liter) with high sealing capacity used for LP gas and inhouse fuel supply system. They said that they have succeeded to achieve zero PM and Sox emissions and reduce Nox by 40 percent at diesel 13 mode tests. They added that they have also achieved high efficiency for DME fuel consumption per calorie, compared to light oil.

However, in order to achieve output equivalent to light oil, fuel injection volume has to be 1.8 times the light oil which will result in enlarging fuel tank (25Mpa for the test model). In addition, establishment of fuel infrastructure for DME is far from completion. In order to facilitate DME business, NKK is emphasizing its low development costs. Although they spent 2 million yen for the test model, costs can be greatly reduced to 200,000 to 300,000 yen with mass production by automakers. In line with government's movement for tougher exhaust regulations, NKK declared that DME will be the major replacement fuel to light oil for diesel engines and they plan to commercialize their DME business in 2005.

Government to facilitate standardization of vehicle electronic information

The Ministry of Land, Infrastructure and Transport plans to start standardization of electronic information covering everything from vehicle production and sales figures to registrations. By enforcing standardization, automakers, insurance companies and other automobile related corporations can more easily access the relevant data. This should have a dramatic impact on business efficiency and lead to increased business opportunities. They also hope that this will increase efficiency for used car sales and parts recycling as well as improve the availability of government services.

From FY2002 (starting from April), the ministry is scheduled to hold meetings with industry associations to exchange information and opinions. They have already started a feasibility study to establish an information system that covers topics ranging from car production to disposal. The ministry currently manages information on vehicle registrations and inspections which is not shared with corporations. They plan to spend one to two years studying this matter in order to solve a variety of problems, including protecting privacy.

Japanese automakers aggressively develop diesel engine models

To deal with tough exhaust regulations in Europe, Japanese automakers have started concentrating on diesel model development. Mitsubishi plans to adopt the 1.5 liter DaimlerChrysler diesel engine used for the A Class. The engine will be used for a 2004 compact car. Their annual procurement is expected to reach 30,000 units. Mazda has developed their own diesel engine (2 liter) and cleared Euro IV for the first time for a Japanese automaker. The engine is also superior in fuel consumption (15km/liter). It is scheduled to be applied to their European model, including a model successor to the Capella, MPV and 2003 Familia (a compact car). Mazda plans to start production of the engine in March (20,000 units annually and 50,000 in 2004). Honda has also developed their own diesel engine and they plan to start its application for the European market this year and Toyota is scheduled to introduce a compact model, equipped with diesel engine jointly developed with PSA, in 2005.

February 27, 2002

Vehicle production in January increases for the first time in five months

JAMA announced on the 26th that vehicle production in January increased by 4.9 percent to 782,401 units (see table for January production). Increases in exports covered declines in truck sales. Compact passenger car production increased for the first time in 13 month due to strong sales of new compact and small cars. Standard truck figures also increased for the first time in five months. Although domestic sales in January declined, total domestic production increased due to export growth (up around 5 percent), especially to North America. Eight makers showed increases in production and Honda and Hino showed two-digit increases. In line with GM entry to JAMA, their figures were registered in JAMA statistics. GM produced 56 trucks in January.

Isuzu to apply mechanical automatic transmissions overseas

Isuzu has decided to expand sales of trucks equipped with mechanical automatic transmissions (AT) for the overseas market. Mechanical ATs are good at increasing fuel efficiency equivalent to manual transmissions and they also have high operability equivalent to normal ATs. In the domestic market, large vehicle manufacturers have been increasing application of mechanical ATs. Isuzu has developed mechanical ATs, called "Smoother F", for the Forward, a mid-size truck, and they plan to expand application to include their overseas models. Smoother F can reduce burden on drivers by avoiding clutch pedal gear operation and has dramatically increased fuel efficiency. Isuzu currently produces small and mid-size trucks at GM plant in the US and 70 to 80 percent of US models are equipped with automatic transmissions because long-distance transportation is common there. Isuzu intends to add mechanical automatic transmission models to meet increasing demands for clean vehicles.

Nissan to expand shared platforms with Renault

In line with the introduction of the new March (picture on the right), which will appear on the market on March 5, Nissan revealed on the 26th that they will expand shared platform application with Renault in order to win the fierce global small car market. The new March is the third generation model and the first model to share a platform with the Renault Clio. The new Clio with the new platform is scheduled to be introduced in 2004. The two companies have decided to share B and C platform. Nissan is also concentrating on improving clean image. If clearing their monthly sales target of 8,000 units for the March, Nissan will achieve a ULEV sales ratio of over 30 percent.

JADA expects sales increases of new cars this year

On February 26, Akira Uehara, a new CEO of Japan Automobile Dealers Association, announced that new car sales in 2002 will increase for the first time in two years. Their initial sales prospect is 4.1 million units (up 1 percent). He added that there are many positive factors: 1) five years passed since tax increases (the number of buyers jumped just before the new tax system implementation), 2) average vehicle ages surpassing 10 years, and 2) a large number of cars registered as of today. However, he noted that in order to achieve increases, automakers are required to introduce attractive models that meet customerÕs needs and industry trends. He also mentioned that simplification of automobile tax systems and regulations is needed to expand demand.

Suzuki to expand overseas purchases

Suzuki plans to expand procurement of overseas parts in order to reduce costs. Currently, their ratio for parts directly purchased from overseas makers is less than 1 percent. Through WWP network by GM group, they plan to double the volume next year. About eight percent of their total cost reduction in FY 2001 gained through WWP. In 2002, they plan to increase overseas procurement of highly versatile parts, including glass, tires and painting materials. They also plan to expand procurement from China and Korea where distribution costs are low. From the two countries, they are scheduled to expand the volume by 10 times (currently 0.02 percent of total procurement costs, mainly from seat materials and battery parts). In their "Challenge 25", starting in FY2000, they declared a 25 percent efficiency increase.

Toyota starts joint production with Hino in Thailand

Toyota has started a joint production business with Hino. Toyota has started procuring accelerators for commercial vehicles in Thailand and they plan to expand procurement items. Toyota has been focusing on overseas joint production with their group companies and they have already started it with Daihatsu in Venezuela and Pakistan. By efficiently using overseas plants of their group companies, they plan to reduce costs, including tariffs (35 percent to 15 percent).

Volvo Japan reveals 2002 plan

Volvo Japan achieved a 40 percent sales increase last year (402 units) while the truck market was still grim. They think that success in Japan is important because of its demand for high technology. In 2002, they have set a 50 percent increase to 600 units while total standard truck sales are expected to decrease by 5 to 10 percent. By 2004, they plan to achieve 1,000 unit sales. Compared to trucks of other domestic makers, their products are superior in running costs (around 20 percent lower in fuel consumption). To achieve their 2002 sales target, Volvo Japan is strengthening the current sales network (35 dealer companies and 135 service shops). For body business, they currently do not feel it is necessary, but if package sales with high cost competitiveness can be realized they are willing to include it in their business. In other areas, they are now thinking about expanding financial business and working on their headquarters for entry of Volvo Finance into the Japanese market.

February 26, 2002

Automakers reveal January business performance

On the 25th, five major automakers announced their sales, production and export figures in January 2002 (see details and table for Sales, Production and Exports in January). All makers, excluding Nissan, showed domestic production increases due to export growth to North America. Overseas production of the same four companies also increased because of good conditions of their other Asian production bases. However, domestic sales of all makers, excluding Honda, declined.

Nissan to attach CD-ROM for the March catalogs

Nissan announced the new March on February 26. The new model was developed based on their concept "user friendly". It is the first model to be equipped with a new platform, which is developed to meet their world strategy through alliance with Renault. There are five basic body colors available (12 colors in total) and they set three newly developed DOHC 4 cylinder CR engines (1.0, 1.2 and 1.4 liter). The new March has large window glass that creates excellent visibility. Major characteristics of the new model are: 1) environmentally friendly (they achieved ULEV levels), 2) compact body and roomy interior, 3) high safety level with six airbags, and 4) high functionality, including telematics service (Car Wing) and keyless entry options. This autumn, Nissan plans to release the March with E-4WD system and in 2003 they are scheduled to open one make races for the March.

In order to expand their integrated telematics service "CarWing", Nissan plans to attach CD-ROMs to catalogs for the new March. The CD-ROM will provide detailed information on their telematics service in addition to explanation for the new March. This is also aiming at covering the lack of telematics knowledge of sales staff. Customers who are interested in the service tend to relay on electronic media such as CD-ROM. Nissan intends to concentrate on telematics service to lead to sales expansion.

Mitsubishi to increase gasoline engine procurement in Europe

Mitsubishi has revealed that they will import compact gasoline engines from a new German merger company between Mitsubishi and DaimlerChrysler for the Z car. The name of the new company will be MD Power and both companies will have an equal stake. The two companies have decided to integrate engine production for the Z car, a world strategy car jointly developed by the two companies, in order to increase cost efficiency. Z car is categorized in B segment (1 to 1.5 liter) and the market of this category has been expanding. Automakers are working hard on increasing cost and production efficiency in order to survive in this fierce competition. Mitsubishi is scheduled to start production of the Z car this coming autumn while DaimlerChrysler is expected to start it in 2004 at NedCar in Netherlands. Mitsubishi plans to expand procurement of compact engines from the new company (having 300,000 unit production capacity) and they plan to regard them as a global compact engine production base.

Honda to increase production of the Fit

Honda plans to increase production of the Fit, a small car, by 25 percent to 25,000 units per month. They hope that this will help achieve an annual production of 1 million units at early stage and reduce people on the waiting list for the Fit (about 20,000 customers). In addition, they have just started production of the Jazz (European model of the Fit) and this summer they are scheduled to start production for Australia and New Zealand. By moving production of the Stepwagon to Sayama plant, they plan to have a dedicated production line for the Fit. They also stopped production of the Orthia, SM-X and Capa at the plant due to their sluggish sales.

Toyoda Gosei to strengthen LED lights

Toyoda Gosei has completed samples of thin rear combination lights using LEDs and proposed them to Toyota. They intend to make them their major product by using their superiority in both automobile and optronics fields (cellular phones, monitors and signals). Their LED lights are superior in energy efficiency, longevity, speed and brightness to conventional LED light bulbs (those are used for the Nissan Cedric/Gloria and Skyline). Although price for the new lights is higher, demand is expected to increase, especially in Canada, where drivers have to turn lights on even in daylight. Toyoda Gosei plans to expand sales of the lights to Toyota and other automakers.

February 25, 2002

Nissan to install integrated telematics systems for luxury vehicles

Nissan plans to set integrated telematics systems, centered on car navigation systems, for luxury vehicles which will be released this year. They also plan to start a telematics service, called "Car Wing", in line with the introduction of the new March. In Nissan global sales strategies, they have decided to aggressively proceed with information technology for their entire line. For the March, they are scheduled to set low priced on-board systems (excluding car navigation systems) in order to expand telematics service. By standardizing application of the integrated telematics system, which will be the same price as car navigation alone, Nissan plans to provide highly sophisticated telematics service. Within the next two to three years, they intend to offer their service for their entire lineup in cooperation with other companies in related industries.

In order to establish new sales methods to strengthen their brand image, Nissan will concentrate on training programs for their dealer staff. In 2002, Nissan is scheduled to introduce six new models, including the March, and they will soon start a telematics service. In addition, automakers have been revealing introductions of new small cars and minivans. In Nissan 180, their three-year business plan starting from 2002, they plan to introduce eight new models annually for the global market. The training program will focus on strengthening brand image in all sales procedures from business talks to orders.

Toyota announces motor sports calendar

On the 22nd, Toyota announced 2002 plans for motorsports. They intend to expand motorsports by establishing training programs to produce world-class drivers able to compete both in Japan and Europe. They will also be starting rallies for beginners in Japan. They also revealed that they will enter F1 Grand Prix this season, supply FedEx Championship (Cart), and support participating teams in domestic GT titles. In F1 Grand Prix, they will participate as constructor, a developer of engine and chassis, under the name of Toyota Panasonic Racing. In FedEx Championship, Toyota is scheduled to supply RV 8F alpha for five teams (8 models). For one make races featuring the "Vitz" in Japan, they will provide the ESSO formula Toyota and Altezza with number plates. They also plan to support beginners by opening "TRD Vitz Challenge". For training pro drivers, they will establish "Toyota Racing School". They will be inviting Masanori Sekiya, who won the 24 hours of Le Mans, to run the school.

Fuji Heavy Industries to modify specifications in Europe

Fuji Heavy Industries plans to modify sticker prices and specifications in each country. After the introduction of the euro, differences between countries are becoming conspicuous. In order to deal with differences in commodity price and car demands, Fuji Heavy Industries is expected to change specifications for each country. For example, they plan to set "snow version" for Scandinavian countries and for countries with low GDP they plan to set basic versions. Starting with the Forester, which will be introduced in March, they are scheduled to start consolidation of sticker prices in Euro countries and modify specifications to meet differing demands for each country.

Mazda to procure steering columns with Ford from Sweden

Mazda plans to work alongside Ford Motor Co. to procure steering columns made in Sweden. Mazda and Ford have been proceeding with platform development for two compacts and one mid-size model. This coming summer, Mazda is scheduled to release the Atenza, a successor to the Capella, for the global market and the Mazda6 will be produced at AAI, a merger between Mazda and Ford. By using the same supplier for all new models equipped with the same platform, they intend to reduce costs. Other parts will be independently decided.

Aisin Seiki to strengthen magnesium alloy parts

Aisin Seiki has revealed that they will expand production of magnesium alloy parts. They are scheduled to increase supply of cylinder head covers to Toyota followed by expansion to oil pans. As a result, their sales from magnesium parts are expected to reach 5 billion yen ($37 million, $1=134 yen) in FY 2006. Their head covers were first adopted in 2000 and they plan for 1.5 billion yen sales in 2002. Magnesium helps reduce weight even more than aluminum does, and they said that using magnesium for head covers will decrease weight by 40 percent. It is also superior in fuel as well as recycling efficiency. For AZ engines (an inline 4 cylinder DOHC) used for the Estima, weight of head cover is 1,300 g (2,100 g with aluminum). With their thinning technology, the weight can be reduced even further.

Koyo Seiko to expand EPS production

Koyo Seiko, a leading EPS (electronic power steering) maker, is trying to further expand sales of EPS systems. Their domestic EPS sales reached 15 billion yen ($112 million) in FY 2000 (ending in March 2001) and they think that in FY 2002 their sales are expected to double the last year's figure due to overseas expansion. In 2005, 25 to 30 percent of new cars in the global market are expected to have EPS systems and they are trying to capture 1/3 the total figure, which would account for 6 million vehicles. However, cost reduction requests from automakers such as Toyota CCC21 will create tough conditions for parts makers. Koyo Seiko are also facilitating overseas expansion in order to meet automaker's needs. For their other major product, bearings, sales have been decreasing (especially in North America and Europe) and their US subsidiary (KCU) has decided to stop Òsmall-scale & various kindÓ production and specialize in automobile bearings. They also plan to shift ball bearing production to Romania.

February 22, 2002

Nissan to develop multi-purpose catalysts for gasoline vehicles

Nissan has decided to develop multi-purpose high performance catalysts for gasoline vehicles in order to produce ultra clean cars at low costs. They have been spending time adjusting catalyst specifications depending on vehicle weight and displacement level. In order to conduct detailed evaluations, they are forced to develop a way to reduce development costs. Their new catalysts will be superior in HC reduction, having zeolites and have already applied them to the Bluebird Sylphy and some of their turbocharged models. They plan to expand application of multi-purpose catalysts for their lineup in order to increase cost competitiveness. Nissan has announced that they plan to shift 80 percent of their domestic models to ULEVs by March next year.

Daihatsu to produce seat material in China

Daihatsu is thinking about producing seat materials in China for export to Japan. This is because subcompact sales have been gradually shrinking following a positive surge resulting from new subcompact standard modifications initiated in 1998. They plan to conduct an integrated production system in cooperation with fabric and spinning companies. Seat materials have been a key factor in increased costs because it is directly dependent on a combination of automobile trim levels and specifications. They currently procure materials in Japan and order fabric/spinning makers to assemble them on seat frames. This results in difficulties in inventory adjustment and keeping up with rapidly changing demands. By adopting integrated production with makers in China, they plan to establish a smooth production system and reduce labor costs. The concrete decisions will be finalized soon.

JAMA to send motorcycle special committee to China

JAMA announced on the 20th that they will send a special committee for motorcycles to China. The committee, consisting of JAMA, Ministry of Economy, Trade and Industry, patent office, JETRO and Japan-China Economic Association, is expected to visit CAAM and governmental agencies for three days from 25th. Through the visit, they plan to request the Chinese government to strengthen copyright regulations. They also plan to hold two-week training program by inviting around ten people concerning intellectual property in the Chinese motorcycle market.

Toyota-Daihatsu-Hino group intends to achieve a 40 percent sales share

In order to achieve a 40 percent sales share in 2002, Toyota has expanded their lineup from subcompacts to trucks while increasing capital into Daihatsu and Hino. Last year, Toyota sold 1,713,271 units, which is down 2.9 percent, and their sales share was 29 percent (42.2 percent for registered cars alone). Daihatsu also experienced a severe sales condition through competition with Suzuki in the subcompact market and share difference widened. Consolidated figures of the Toyota group were 2,289,663 units and share was 38.7 while combined sales share of Toyota and Daihatsu was 38.1 percent. They expect the competition will further intensify due to Honda's continuous strong business and Nissan's aggressive sales strategy.

BMW Japan sets sales target for the new 7 Series

BMW Japan has set an annual sales target for the 7 Series at 4,000 units at the most. The 7 Series, their most luxurious model, will appear on the market in April. The last full model change was conducted seven years ago. The new model will be equipped with the first 6 speed automatic transmission combined with newly developed V8 engine. They are scheduled to first introduce three versions with 3.5 liter and 4.5 liter engines and later they plan to introduce a 6 liter 12 cylinder engine model. They started accepting orders last October at Tokyo Motor Show, and they have so far received 387 units.

Land Rover Japan to concentrate sales of the Freelander

Land Rover Japan, having a unique brand image in PAG (Premiere Automotive Group), sold around 3,000 units last year while their initial target was 4,500 units. They think this is due to economic downturn in the latter half of 2001 and all aspects, excluding the introduction of the Freelander, had a negative impact on their business. Their 2002 sales target is 4,400 units by focusing on sales of the Freelander. They also plan to strengthen sales of the new Range Rover and Defender in addition to two new models. Their main pillars for 2002 business target are sales network restructuring, increasing brand image and quality improvement. For network, they are scheduled to expand from the current 74 to 103 locations by 2005. For sales promotion, they plan to hold user events at camping facilities in Yamanashi prefecture in cooperation with local government and open the first domestic Land Rover center in Tokyo.

Toyota to renew Fuji Speedway

Toyota has decided to close Fuji Speedway (FISCO) and completely refresh the facility by 2004. This is in line with their F1 entry this season. They have revealed that they will use the facility as an information center to promote motor sports and hold traffic safety programs for young people. Total investment for the renewal is expected to reach 10 billion yen ($75 million). Through cooperation with Yamaha Motor, they are scheduled to establish cart courses.

February 21, 2002

Isuzu to introduce small diesel hybrid truck this year

Isuzu plans to release a new small truck equipped with diesel hybrid unit this year. The hybrid system (strong hybrid type) is jointly developed in cooperation with GM. Diesel engines are superior in fuel efficiency while being inferior in emission volume to gasoline engines. By combining with electronic motors, fuel efficiency can be improved and emissions can be reduced. They have already completed a mockup vehicle and plan to introduce a retail version this year. Their main target will be transport companies working in big cities. Isuzu intends to expand sales by strengthening clean image. In the truck hybrid market, which lags behind the passenger car market, Hino plans to release mild hybrid small trucks.

Toyota starts production of the Corolla in Turkey

Toyota has announced that they started production of the Corolla sedan at TMMT (Toyota Motor Manufacturing Turkey), established in 1990. They also plan to start manufacturing the Corolla station wagon in August. These models will be released in 20 European countries and total annual export figures are expected to reach 40,000 units. The Corolla had been imported from Japan but production of TMMT dropped to 3000 units last year while their production capacity is 100,000 units due to economic slowdown. The Corolla with three and five doors for the European market is produced in the UK.

Ichikoh Industries to supply side mirrors to GM

Ichikoh Industries have received orders for side mirrors from GM for the GMT820. Annual production will be 480,000 units a year and total sales are expected to reach 3 billion yen ($22 million, $1=134 yen). Their side mirrors are multi-functional units consisting of turn signals, dazzling prevention system, and automatic storage system. They plan to produce the unit at IMI (Ichikoh Manufacturing Inc. Kentucky), their production subsidiary. IMI sales of side mirrors in North America are about 8 billion yen. Competition for simple side mirrors has intensified, especially for compact cars, while application of multi-functional type has been increasing among SUVs and luxury vehicles. Multi-functional type with turn signals was first adopted by Mercedes Benz and has gradually been expanding.

Mitsubishi intends to achieve 500,000 sales

Mitsubishi is trying to increase passenger car sales in the domestic market by 16 percent to 500,000 units in FY 2002 (starting in April 2002 and ending in March 2003). Although the domestic passenger market is expected to continue in severe condition, they think that new model introduction in addition to current strong subcompact sales will contribute to achieving the goal. In 2001, they sold 423,000 passenger cars (167,000 units for registered vehicles and 256,000 units for subcompacts) and their sales share was 7.8 percent. Sales share of their registered vehicles (AIRTREK was their only new model) sharply declined from 20 to 6.9 percent. However, subcompact sales share increased to 13.8 percent due to brisk sales of the eK wagon introduced in September. In FY 2002, they plan to introduce a minor changes and a turbocharged version of the AIRTREK as well as make minor changes to the Lancer Cedia, Dion and Grandis. In the latter half, they will finally release the Z car, a jointly developed model with DaimlerChrysler, and introduce minor changed Pajero. For subcompacts, they plan to introduce improved versions of the Minica, Toppo BJ and Pajero Mini to achieve sales share of 15 percent.

Aichi Steel develops an ultra-small and sensitive sensor

Aichi Steel announced on the 20th that they have developed an ultra-small and sensitive sensor, MI Sensor. They use amorphous metal wires combined with IC electric circuits. The size is 4x3mm and adaptable for cellular phones, automobile speed sensors and engine sensors. Sensitivity of MI sensors is over 1 million times that of conventional coil sensors. They plan to form an alliance with Macnica, an electronic parts development company, for MI sensor module development. By building in the sensor to information terminals, it can provide various kinds of next-generation information services, including navigation. For automobiles, shifting to MI sensors from coil sensors, which are currently used for over 50 locations, is expected to dramatically reduce body weight. Aichi Steel is scheduled to start supplying samples in March and producing 2 million units a month in October. They intend to achieve commercialization for the automobile market in two years.

Jaguar Japan to further expand new buyers

Jaguar Japan, who succeeded in gaining new buyers with the X-Type last year, plans to increase sales network from the current 75 to 90 locations this year. The showrooms will be jointly displayed with other PAG models, including Land Rover and Volvo. Their 2001 sales reached 3651 units, which is up 27 percent. Sales of the X-Type and XK increased while figure for the XJ Series and S-type decreased. Sales of the X-Type alone largely surpassed their target figure with 1,250 units in the first four months and most of buyers are new customers (20 percent are ex-owners of the Jaguar). They think this resulted in increasing brand identity in Japan. This year, Jaguar Japan plans to introduce the X-Type with a 2 liter engine following the UK market and targeting new customers and woman buyers. They are also thinking about releasing the new S-Type soon. Their 2002 sales target is 6,000 units (up 60 to 70 percent). In line with the sales expansion, they will soon start adoption of authorized used car program for their official dealers and plan to extend the program throughout their entire dealer network in one to two years.

February 20, 2002

Nissan plans to form an alliance with NTT DoCoMo for telematics service

On the 19th, Nissan announced that they have reached a basic agreement for joint study and development for telematics technology. The two companies plan to start a new telematics service based on NTT DoCoMo's FOMA technology. NTT DoCoMo is the top Japanese cellular phone service company and is well known for their i-mode communication service. FOMA is the third generation mobile communications using W-CDMA, which is expected to be the world standard for IMT-2000 and competing with cdma 2000. Nissan plans to expand the service as a major human-machine interface (HMI) to make it the industry standard.

The service starting in 2003 will include: 1) network navigation service to provide traffic information, weather reports, facility information (parking, hotels, restaurants, etc.), and 2) local linked services with GPS and voice activation technology to offer up-to-date map information to meet users interests. These services will be available through cellular phones, PCs and PDAs.

The service starting in 2004 will include: 1) integrated cross-industry service to get information from different industries, such as non-life insurance, security service and service stations, and 2) on-demand service from other infrastructure to obtain various services, including electronic money, broadcasting and DSRC (dedicated short-range communications). These services will be provided by linking to other network infrastructure.

Fuji Heavy Industries to enter the recycling market

Fuji Heavy Industries plans to start recycling business in line with the introduction of automobile recycling laws in 2004. They will be the first automaker to enter the market. In the new law, users have to pay a fee for discarding their vehicles and automakers have to take in those vehicles. Therefore, automakers will be able to set amount of charge on their own, which should differ between models. They plan to start recycling their vehicles to lower prices and reduce the burden on users. Fuji Heavy Industries also plans to take in vehicles manufactured by GM group companies, including Suzuki, Isuzu and GM Japan to contribute to lowering recycling costs.

MOBIS to strengthen sales in Japan

MOBIS, a leading Korean parts maker, is strengthening development for parts and accessories for the Japanese market. By 2005, they intend to expand sales in the market to 13 billion yen ($98 million, $1=133 yen) by emphasizing their high cost performance. Their current production includes front and cockpit modules, airbag systems and ABS systems (200,000 to 600,000 units annually) for Hyundai and Kia and for the world market they sell automobile repair parts, containers and environment related facilities. In Japan, they achieved 3.9 billion yen last year and most of it was gained through containers and environment facilities (accounting for 70 percent). To expand sales of automobile products, they plan to set up a new company (a second overseas company following Belgium) in July to establish deeper relationship with Japanese tier one makers as well as strengthening brand image in aftermarket.

Toyota dealers to expand sales of RV customized cars

Major dealerships of Toyota plan to expand customized car sales under the brand name of ÒLX-MODEÓ, starting with the Estima, Noah and Voxy. The LX-MODE will be developed by Backup Design, established last September. Uniqueness of the LX-MODE is that each dealer can choose any combination from their customized parts and genuine accessories. The three models will be equipped with aerodynamic body parts (front spoilers and five types of aluminum wheels) originally developed by Backup Design and genuine side step and rear skirt parts. They plan to expand application of the LX-MODE to full lineup from sedans to luxury vehicles such as the Celsior (Lexus LS430) and also expand user age groups to 30s and 40s.

Ford Japan to strengthen brand identity

Ford Japan has been experiencing severe conditions in Japan. They sold only 11,129 units last year. But because they shifted focus to brand establishment and decided to withdraw from sales of sister models of Mazda in 1999, sales ratio of Ford models reached 73 percent. For the time being, they plan to concentrate on improving dealer management. By shifting brand position, they have to change target customers because prices per vehicle are around 1 million to 1.2 million yen for Mazda sister models and 2 million to 2.2 million yen for Ford. They have started aggressively pursuing potential customers and examine the customer lists to follow 5-6 people a day on Saturdays. They also directly instruct dealer staff to expand customers. For sales network, they are scheduled to modify and adopt CI for 30 dealerships and in 2003 they plan to complete renewal for 100 locations nationwide. This year, their lineup will include additional versions to the Focus and Mondeo to achieve 12,000 unit sales (10,000 for Ford models). After 2003 they plan to introduce the Thunderbird, a new entry car and wagons.

February 19, 200

Toyota to expand stoichiometric direct injection gasoline engines

Toyota is considering standardization of systems for direct injection units and plans to expand stoichiometric units by shifting from lean burn type. They have been using stoichiometric engines for some overseas models, including the Avensis designed for the European market. Stoichiometric engines are superior in emission purification and provide operation/fuel efficiency improvements over a wide driving range (even for small engines). On the other hand, lean burn type is good at increasing fuel efficiency at low loads by over 20 percent but it is disadvantageous in Nox reduction and cost reduction especially for engines under 1.5 liter. In their cost reduction plan (CCC21), Toyota declares expansion of sophisticated parts sharing regardless of class (size) in order to further reduce costs.

Operational profits of Honda dealers expand

Honda has announced that their dealer's average ratio of operational profits to sales figures from April to December 2001 increased to 2.1 percent, up over 1 percent on year-to-year comparison. Total number of their dealers is 1,100 companies. Although prices per vehicle decreased, Honda expects that no dealers will end in the red for FY 2001 (ending in March 2002). Last year, about 20 percent of them were in the red. In the domestic market, sales of Honda models increased by 13.3 percent to 631,000 units from April to December. This is mainly due to the strong sales of the Fit, a small car. Profits from non-vehicle sectors, including insurance, also greatly contributed to the profit increases. For FY2002, Honda's business performance will reach the highest ever due to new car sales increases in Japan and North America as well as profits from preferable exchange rate.

IAAE 2002 ends in success

IAAE 2002 (International Auto Aftermarket Expo 2002) closed on February 17 at Makuhari Messe Convention Center in Chiba prefecture. The show was held from the 14th and 37,184 people from all around the world visited. This is the first domestic aftermarket parts trading show ever and 255 companies/groups from 11 countries participated. They were aggressively exchanging information and conducting business talks. IAAE Committee has already decided for the second show in 2003 (March 6 to 8) at Makuhari Messe.

Toyoda Boshoku to supply interior parts for Toyota IMV

Toyoda Boshoku has received orders for interior parts development from Toyota for IMV (Innovated International Multipurpose Vehicle), which will be on the world market in 2004. The IMV, a successor to the TUV, will be produced and sold in ten different countries in Asia, Oceania, South America and South Africa. Total production is expected to reach 500,000 units. Prior to IMV parts development, Toyoda Boshoku established a new company in Thailand in last June and finally received orders from Toyota this year. They will be in charge of interior system development. The system will be composed of roof, carpet, door trim, noise prevention material and console box. They plan to strengthen cooperation with tier two makers (seven to eight Thai companies) to prepare specifications to meet the individual demands of different markets. They plan to regard the Thailand plant as an overall production and supply base. Toyoda Boshoku became a system supplier in 2000 (with the Toyota RAV 4) and IMV is their 7th model. From this point on they will have to compete with Hayashi Telempu to become a system supplier for the Toyota's European models such as the Corolla, Vitz (Yaris) and Camry.

Peugeot sales reaches the highest ever in 2001

In 2001, sales of Peugeot models in Japan reached the highest ever of 12,295 units, up 14.2 percent. They are the first French automakers that achieved over 10,000 sales in Japan. They think this is because their long-term dealer restructuring efforts bore fruit. They also think that offering automatic transmissions for their entire lineup has supported their sales increases. They are currently working on establishing an improvement project for dealer service, showrooms and used car sales to achieve an annual sales target of over 15,000 units this year. For a long-term sales target of 20,000 units, they plan to increase dealers to 118 to 120 locations from 102 (65 companies). Through alliances with PSA group, who is scheduled to establish a new company in Japan this spring, they are planning to proceed with separate brand strategies while considering joining hands for some fields that do not require sales competition, including computer systems and parts distribution network.

Honda to level off sales volume

Honda plans to review and modify the current sales system, including new car introductions, in order to give greater consistency to their overall sales volume. Currently, sales differs month to month and figures in January and August are less than half the figures in March. They plan to adjust date of full model changes, minor changes and additional versions to narrow the difference, so that they can offer stable product lineup at their showroom to lure more customers.

February 18, 2002

Fuji Heavy Industries adopts a new damage prevention technology

Fuji Heavy Industries has developed and applied a new technology to the Forester that helps reduce damage to parts and lowers repair parts costs. They modified parts layouts and the shape of front areas. They used digital analysis to maintain high quality while increasing parts protection performance. They adopted the new technology because the Forester was designed for rough roads which tends to increase the likelihood of damage to parts. Recently, various new technologies for car development are required in order to respond to stricter regulations. Therefore, automakers have to clear requirements from weight reduction to collision safety, while at the same time avoiding increased development costs. In the new technology, Fuji Heavy Industries moved horns behind the fog lights to reduce damage to radiators during front collisions. At the same time, they placed fog lights 60 mm behind the bumper front to help reduce the chance of lens breakage.

Toyoda Machine Works supplies EPS to Daihatsu

Toyoda Machine Works has announced that they developed and started supplying EPS systems to Daihatsu. This is the first time for Toyoda to provide large scale EPS supplies. They intend to regard EPS systems their next major products. Their EPS is column type and they achieved 82 percent lower fuel consumption and 14 percent weight reduction, compared to oil pressure power steering units. As a result, fuel efficiency is expected to increase by about 3 percent. Daihatsu started using their EPS units with the Terios and Terios Kid, introduced at the end of last year. Toyoda Machine Works has reduced parts costs and shorted development and production time through an alliance with Koyo Seiko.

Toyota to integrate their lineup into ULEV and GLEV

Toyota has decided to integrate their entire lineup into ULEVs and GLEVs by avoiding gradual modifications in order to increase cost efficiency. In the latest exhaust regulations, the government has set three clean levels (ULEV, SLEV and GLEV) based on the 2000 HC/Nox regulation levels. ULEV is the toughest level requiring 70 percent lower emissions than figures in the regulations, followed by SLEV (50 percent lower emissions) and GLEV (25 percent lower emission). Toyota has been aggressively developing ULEVs, including the Celsior (Lexus LS 430) and Prius. They plan to first expand GLEV lineup and emit SLEV development in order to achieve an early expansion of ULEV lineup to become the top automaker for environmentally friendly.

Aisan Industry tries to become the top maker for three products

Aisan Industry plans to expand global production in response to globalization of automakers, especially Toyota, who is their main client. In line with global expansion, they are concentrating on production consolidation by parts in order to increase cost and production efficiency. They are also focusing on cost reduction by 50 percent. They think it is necessary to achieve the figure to survive in the intense international competition and respond to Toyota's cost reduction project, CCC. In China, their carburetor production has been declining. They plan to shift to aluminum die casting production and import about 50 percent of domestic supplies from China. For throttle bodies, fuel pumps and canisters, they intend to become the top maker in the international market by improving production competitiveness (currently third to fifth place in the market). In other areas, Aisan Industry plans to focus on fuel injection systems (EFI) for motorcycles.

Renault reveals their Asian strategy

Renault plans to focus on the Asian market through cooperation with Nissan. They are especially strengthening business in Japan and China. This year, they are scheduled to introduce three models (Avantime, Laguna and Kangoo) for the Japanese market. In Japan, their brand image is "rank-and-file" vehicle while in the Japanese import car market luxury cars such as Merced Benz are popular. To clear this obstacle, they plan to improve their luxury lineup and release the Vel Satis next year. At the same time, they will concentrate on sporty lineup, including the Lutecia, following F1 entry. They also plan to increase dealers from the current 65 locations (Nissan dealers) to achieve 3,500 sales (less than 3,000 in 2001).

For the Chinese market, they will concentrate more on the merger business which they started in 1993. Based on their recent success in Indonesia, they think that Nissan's cooperation will be necessary to successfully do business in China as well. They are also considering whether or not to export vehicles from Renault-Samsugm, which currently produces 70,000 to 80,000 units even though their production capacity is 250,000 units. However, if they start exporting vehicles to China, competition with Nissan is unavoidable. The two companies have already agreed on the export to China, but they have not reached an agreement for exports to other Asian nations. At Renault-Samsugm, they manufacture the Nissan Cefiro based model and plan to soon add a new model based on the Bluebird Sylphy.

February 15, 2002

Honda to use next-generation ultra-capacitors for FCEVs

Honda has decided to adopt next-generation ultra-capacitors (large condensers) in line with next year's introduction of FCEVs. With the ultra-capacitors, Honda plans to achieve both high fuel efficiency and integrated performance. The key to improving fuel efficiency for FCEVs and hybrid vehicles is to create an energy regeneration system which uses stored electric energy converted from kinetic energy. The current high performance batteries are superior in storage volume while ultra-capacitors excel in torque performance and weight reduction. Honda thinks that using an ultra-capacitor is more advantageous for increasing performance of FCEVs. They are scheduled to start using the unit with the first commercial FCEV, which will be a limited-run model exclusively for California.

Mazda unveils micro mini "Spiano"

Mazda has announced a new micro mini car, the "Spiano", which goes on sales today (Feb. 15) for the Japanese market. It features round-shape exterior and classical, amiable interior. Despite its small size, it creates a roomy interior with an upright window and pillar and has high safety level that can withstand offset crashes at up to 64km/h. All types are equipped with a K6A-3 cylinder DOHC VVT all aluminum engine and electronic controlled 4 speed automatic transmission. With FF version, they cleared the 2010 fuel efficiency standards and high clean levels to be qualified for Green tax breaks. It is designed especially for young women and they offer nine different body colors. Their monthly sales target is 650 units.
(Picture on the right: (up) Spiano back view, (below) seat layout)

First Mazda6 rolls off assembly line in Japan

On the 14th, Mazda announced that they started full production of the Mazda6 (Atenza) at their second Hofu plant. The model will be a medium passenger car and the first model of their next-generation products. The Atenza is a successor to the Capella and uses a newly developed platform to achieve high levels of driving performance. They also used a newly developed "MZR" gasoline engine in 1.8 liter, 2 liter, and 2.3 liter sizes. For the European market, they have developed a 2 liter diesel turbocharged engine. For the North American market, they plan to start production at AAI in the latter half of 2002.

Isuzu to reduce the number of suppliers by half

By FY 2003, Isuzu plans to reduce parts and material suppliers by 50 percent. Following the current reduction project for maintenance parts, they are scheduled to halve the suppliers while increasing purchases per company. They have so far integrated major parts numbers from 28,000 (140 items) to 14,000. In the Japanese automobile market, automakers tend to use two suppliers per parts item in order to avoid emergency problems. They are currently dealing with 460 tier one suppliers. For steel plates, they will choose from either Nippon Steel or NKK.

Honda and Nissan show bright prospects

In what may foreshadow fierce March competition, Honda continues to display strong business results while Nissan is showing sure signs of recovery. Honda intends to achieve over 920,000 unit sales this year with the Fit, Mobilio and That's. In addition to continuous strong sales of the Fit and Mobilio, they expect the recent introduction of their second subcompact, ÒThat'sÓ, will further increase their total sales. Nissan, for the first time in two and half year, had three models that got in the top ten in January. In the top 30, eight Nissan models entered and four of them showed two-digit sales increases. Nissan hopes that the introduction of the new March, which will be introduced at the end of this month, will be a spur for sales increases.

Volkswagen to keep strong grip on the Asian market

Volkswagen, who is the top import maker in Japan for two straight years, is showing a strong intention to maintain their current high sales in Asia. In 2001, they sold 5,080,000 units (up 0.4 percent) with their group companies in the global market and achieved a 12.5 percent sales share. In Asia where car demand increased 4.5 percent in 2001, their sales grew by 7.2 percent to 461,000 units and captured a 5.5 percent share although Japanese cars are popular there. In China, their sales share dropped from 70 percent to 50 percent. They expect total demand in China will double to 1,500,000 units over the next 5 to 10 years and they plan to try their best to keep a 50 percent share by defeating tough competitors like Toyota and Honda.

For the Japanese market, they plan to continue their current sales strategy to improve their luxury image and increase sales from the current 70,000 units (60,000 units for Volkswagen alone) to 100,000 units. They also think that it is necessary to focus on expanding large dealers and brand campaigns in big cities where luxury brands such as Mercedes Benz and BMW are dominating the import car market. Their last year's sales share of Volkswagen alone in Japan was 24 percent but figure was 10 percent lower in Tokyo.

February 14, 2002

Daihatsu to prioritize OEM development

Daihatsu has decided to proceed with compact car development by prioritizing OEM supply to Toyota. This is due to the recent slump in compact car sales and they plan to concentrate on subcompact development. Their domestic sales for compact cars sharply fell (two-digit decline). They stipulate that figures for OEM compact sales through Toyota's sales network are about 7 times the figures sold through the Daihatsu network. Therefore, they plan to reflect Toyota's needs during development of compact cars in order to expand OEM supplies to Toyota.

Mazda reveals two models for Geneva Motor Show

Mazda6 Wagon
LxWxH (mm): 4690x1780x1450
Wheelbase (mm):2675
Engine:
MZR 1.8/2 liter 4 cylinder DOHC
MZR 2.3 liter inline 4 cylinder DOHC S-VT
MZR0CD 2 liter diesel engine

NX Sport Runabout
LxWxH (mm): 3900x1720x1550
Engine:2500
Engine:1.5 liter DOHC

Mazda has announced the Mazda 6 Sport Wagon (Atenza) and MX Sport Runabout for Geneva Motor Show starting from March 5. The Mazda6 includes three different body styles (a 5 door hatch back, four door sedan, and a sport wagon). The Mazda6 Sport Wagon, having E-type multi-link rear suspension, has a roomy luggage space and is equipped with "karakuri" rear seat design. In the "karakuri" seat system, the seat cushions sink into the floor with a single touch on a handle in the luggage floor while the seatbacks fold forward to create an entirely flat floor. For the European market, the Mazda6 Sport Wagon with an MZR-CD 2 liter common rail diesel engine will appear this summer. The MX Sport Runabout is a sporty concept model of the next Demio, which will be introduced this summer. It is equipped with a 1.5 liter DOHC engine. They also adopted a newly developed suspension and high rigid body for stable high performance driving. According to the head of Design, Moray Callum, the MX Sport Runabout's stylish interior/exterior, superb achieving comfort and excellent handling establish a new standard for next generation small cars.

Fuji Heavy Industries to withdraw from the bus market

Fuji Heavy Industries is thinking about withdrawing from the bus market in FY2003. But they are planning to continue supplying repair parts to their current customers and providing bus body service. Their current clients are Nissan Diesel and Isuzu. Fuji Heavy Industries started restructuring their bus business four years ago to bring profits with annual sales of 500 units. However, in addition to Nissan Diesel's decision to integrate outsourcing to Nishi Nihon Shatai by 2003, their annual production of below 500 units forced them to withdraw from the market.

Nissan Diesel to modify ESCOT

Nissan Diesel plans to improve their electronic controlled automatic transmission, ESCOT, to expand its sales. The ESCOT is currently applied to their large trailers and trucks. They plan to develop a version of the unit for mid-size trucks in order to achieve higher fuel efficiency. By expanding application of the ESCOT's unique technology, they intend to strengthen differentiation from other maker's vehicles. ESCOT does not require clutch operation during startup and it enables automatic control of gear shifting for some vehicles. The new ESCOT will have improved functions that can choose the most suitable gear changes depending on driving conditions. In the midst of an economic downturn, transport companies are seeking vehicles that can help cut running costs, including shifting to mid-size trucks.

Koyo Seiko and NIDEC get EHPS orders from Ford

Ford Motor has changed steering systems for the C car from EPS to EHPS. The C car will be released for the European market in 2003. The change was expected to be decided after body weight of the C car surpassed their initial plan in order to keep high collision safety levels. EHPS systems are usually used for heavy vehicles. Ford has initially chosen NSK/Mitsuba for EPS suppliers. Because NSK does not produce EHPS, Koyo Seiko, who was defeated by NSK for EPS competition, unexpectedly got orders from Ford. NIDEC will fully enter the automobile parts market in line with the supplies to Ford.

Zexel Valeo Climate Control to establish strong sales system

Zexel Valeo Climate Control (ZVCC) plans to set up project teams for each platform of major models in order to expand sales. ZVCC was established in 1999 as a merger company between Valeo and Bosch Automotive Systems. They are in charge of air conditioning business in Asia. By strengthening their sales system, they plan to increase sales share in Asia from the current below 10 percent to 20 percent. They are also scheduled to receive personnel from Valeo for procurement and aggressively propose their products to car makers.

BMW Japan to launch large-scale sales promotion for the MINI

BMW Japan has decided to sell the MINI through 69 sales networks (61 companies) to achieve 9,000 to 10,000 unit sales this year. They also plan to expand sales network to 74 locations within a half year and use online order systems connecting to their UK plant to conduct smooth dealer operations. For MINI dealers, they are scheduled to adopt an integrated CI to strengthen their brand image. At the same time, dealers will handle aluminum wheels, aerodynamic body parts and their original goods. At showrooms in big cities, they will hold demonstrations and various events.

February 13, 2002

Used car sales increase in January

Used car sales in January (reported by JADA)
Type	January
Passenger cars Standard Compact Total	117,356 (+6.8) 182,127 (-0.3) 299,483 (+2.4)
Trucks Standard Small Total	12,520 (+8.0) 23,633 (-1.8) 36,153 (+1.4)
Buses	854 (-4.0)
Other	9,187 (-8.7)
Total	345,677 (+1.9)

On the 12th, JADA announced used car sales in January increased, for the first time in two months, by 1.9 percent to 345,677 units. Total used passenger car sales grew mainly due to introductions of new RVs and economic downturn while figures for used compact passenger cars fell for the third consecutive month. Used standard cargo vehicle sales jumped by 8 percent. They think that economic instability shifted buyers to used vehicles. Used bus sales declined for the second consecutive month.

JAIA released used import car sales for January on the 12th. Total sales increased by 8.2 percent to 35,737 units. Top brand models showed large increases. Standard passenger car sales jumped by 11.1 percent to 22,496 units, compact passenger car figures also increased by 2.6 percent to 10,268 units and cargo vehicle sales sharply grew by 44.2 percent to 313 units. The top brand is Mercedes Benz (up 7.6 percent to 6,243 units) followed by BMW (up 8.2 percent to 4,608 units) and Volkswagen (up 12.1 percent to 4,258 units). Volvo, Opel and Chevrolet also showed increases while Mini and Pontiac sales declined.

The new Forester unveiled

Fuji Heavy Industries introduced the all new Forester on February 12 (see specifications). The new Forester is an SUV that features high driving performance both on and off road while achieving high fuel efficiency (including turbo types) and clearing 2010 fuel efficiency standards. They have also succeeded in weight reduction by 30kg. They designed the model to have high eye points and a relatively compact body for an SUV, which they hope will lure woman buyers. Engine is a 2 liter horizontally opposed 4 cylinder engine and it is available in turbocharged and naturally aspirated (NA) types. With turbocharged engines, they cleared the latest fuel efficiency levels of 13 km/l (10-15 mode) for both 4 speed automatic and 5 speed manual transmissions. They also cleared the 2001 emission standard (25 percent lowered than stipulated figures). For safety, they adopted a new ring-shaped frame structure and used CAE analysis design while using aluminum front hoods, bumper beams and roof rails. Their monthly sales target is 3,000 units for the Japanese market. They are also scheduled to start exports this summer to the US (5,000 units monthly) and Europe (2,000 units).

Sticker prices are 1,950,000 yen for the X20 (NA) with an electronically controlled 4 speed automatic transmission and 2,197,000 yen for the XT (turbo) with a 5 speed transmission.

Hino to consolidate truck platforms

Hino will soon start reducing the number of truck platforms while maintaining the current number of models. This move is aimed at cutting production and development costs in response to overall truck sales declines. They currently have about 1,500 different platforms (500 each for large, mid-size and small trucks). Basically, they plan to consolidate the number of engines and drivetrains and increase the number of sister models having the same platform. They expect that this will reduce platform number by 20 to 30 percent.

Koito Manufacturing to concentrate on advanced technology

Koito Manufacturing, the top domestic car light maker, is thinking about maintaining their current independent style while other large domestic light makers form alliances with overseas makers. However, recent car production declines have forced them to concentrate on advanced technology, including HID lights, AFS systems and infrared night vision systems.

Koito Manufacturing is the top maker for HID lights and expects that demand will increase and about 1/3 new cars will have HID lights in 2005 (currently 10 percent). They plan to start overseas assembly of HID lights. In Europe, they are scheduled to start it in Czech in October in order to avoid exchange rate problems. They also plan to establish the third plant of NAL in the US for HID lights under the expectation that the US automobile market will steadily grow. To deal with the market expansion in China, they plan to start operation of their new technical center in Shanghai this coming spring.

In other fields, they plan to continue concentration for front end modules but they are not thinking about a rapid expansion. As for infrared technology, they plan to focus on cooperation with Koito Industries who has a long been supplying the aeronautical and marine markets. They hope it can greatly help reduce development costs for automobile units.

Government expects a jump in sales for vehicles subjected to Green tax breaks

The Ministry of Land, Infrastructure and Transport has announced that FY 2001 sales of vehicles which benefit from Green taxing, a form of preferential taxation, are expected to reach 1,300,000 units (1/3 the total new car sales). Passenger cars will account for 30 percent. The Green Tax system, started in April 2001, gives clean cars, with 70 percent lower emissions than required levels and clearing 2010 fuel efficiency levels, preferential taxing that reduces taxes by half for two years starting from the second year after purchase. Currently, the Nissan Bluebird Sylphy, Toyota Estima Hybrid and Honda Civic benefit from the Green tax system. On the other hand, drivers with gasoline vehicles owned over 13 years or diesel vehicles owned over 11 years have to pay an additional 10 percent. As of September 2001, 146 models have qualified for Green tax consideration (double the figure as of December 2000).

February 12, 2002

Nissan to fully start HCCI engine development

Nissan plans to concentrate on development of a new clean engine, called HCCI engine. The new engine is a high efficiency unit, which can achieve ultra-low emission equivalent to FECVs and high heat efficiency of 40 percent while maintaining low costs. They intend to succeed in development through adaptation their control technology accumulated through direct injection engine development. They plan to use the new engine for hybrid cars.

HCCI engine, a enhanced combustion unit, is superior in overall combustion control and driving efficiency (over 2 times the current gasoline engines), partly because it always runs in lean burn condition. Nissan plans to solve fuel distribution problems by combining it with series hybrid units. In the HCCI market, Yamaha Motor, DaimlerChrysler and US research groups have been working with the development.

Nissan announces earlier achievement of NRP

On the 8th, Nissan President Carlos Ghosn revealed at a supplier's meeting that commitments in the Nissan Revival Plan (NRP) will be successfully achieved by March 2002, one year earlier than planned. They revealed that they will also achieve a 20 percent cost reduction in purchasing and profits with a 4.5 percent operating margin, declared in the 3-year NRP. In their announcement, they also revealed commitments of Nissan 180, a new 3-year NRP. In the Nissan 180, they will aim for: 1) increasing annual global unit sales by one million vehicles, 2) achieving a 8 percent operating profit margin to become the global top maker, and 3) eliminating net automotive debt which allows investors to decide based only on their return. Details for the Nissan 180 will be revealed at the beginning of FY2002.

Honda tries to achieve 900,000 sales

Honda has revealed that they plan to sell 900,000 units for the domestic market in FY 2001 (ending in March 2002). The figure is the highest ever for Honda. Their sales have been steadily increasing (up 13 percent) after introductions of the Fit and other minivans and small cars. As a result, sales by the end of January reached 696,000 units, which largely surpasses figure last year. They expect the Mobilio, introduced at the end of last year, and the That's, introduced last week, will help achieve a jump in sales. In their plan, they are scheduled to establish a one million unit sales system by 2004.

Porsche Japan to expand used car business

Porsche Japan plans to adopt a new system for pre-owned cars handled by official dealers and expand application to all their dealers by 2003. At the same time, they plan to open pre-owned car centers in big cities. About 8,700 used Porsche are on the market annually, and they plan to increase ratio for pre-owned cars authorized by Porsche Japan to 30 percent. With the new system, their official dealers can conduct everything from evaluations, inventory check to guarantee online.

SEMA CEO to hold lectures at IAAE 02

At the 1st International Auto Aftermarket EXPO 2002, two people from SEMA will hold lectures. IAAE 02 will be held on February 14 to 17 at Makuhari Messe. Over 250 companies from all around the world will participate. CEO of Communivator in the Communivation Group, Mr. Bill Bainbridge, who has experienced in marketing at Toyo Tire, plans to talk about brand strategy, and Vice President, OEM Relations, Mr. Carl Sheffer, will explain on how accessory makers should approach automakers and dealers in the new era of globalization.

Automakers focus on used car business

After bubble economy burst, used car sales have been increasing. Used car sales surpassed new car sales in 1992 and in 1999 figure was 1.3 times new car sales. This is mainly due to improvement in used car conditions and increases in duration.

However, automakers are lagging behind in used car business. Toyota, who has a over 40 percent share in the new car market, only has a 8.4 percent share in the used car market (in 2001). This is directly related to the increasing number of trade-in companies establishing in recent years. Automakers have been entrusting used car distribution to these companies, including managing trade-ins, for a long period of time. Recently, Toyota has opened their own trade-in shops, T-UP, and plans to expand to 800 from the current 600. They mainly target their dealers but also offer franchise contracts. Other automakers, including Nissan, Daihatsu and Honda have been strengthening their trade-in business to respond to used car market expansion.

February 8, 2002

Honda That's unveiled

Honda released a new subcompact, the That's, on February 8 (see specifications). They created a boxy, rounded body and high roof to enlarge window areas. They used black and silver only for the interior to create an urbane atmosphere. The That's, having the same chassis with the Life, is equipped with the latest clean and safety systems. Its interior space is larger in width, length and height than the Life. Honda offers two engine types: naturally aspirated engine (max. output of 52 PS) and turbocharged engine with intercooler (max. output of 64PS). Both engine models are equipped with 3 speed automatic transmissions. With the naturally aspirated engine FF models, they achieved 19km/l and cleared 2010 fuel efficiency standards. They also succeeded in weight reduction and high strength by expanding application of high tension steel plates and achieved a high safety level equivalent to four stars in J-NCAP. There are 14 body colors available. Their main target is young people and they expect that male buyers will increase. Their monthly sales target is 6,000 units. Sticker price is 1,034,000 yen for the FF type with a naturally aspirated engine and 1,289,000 yen for the 4WD type with a turbocharged engine.

At the press conference for the That's, Honda President, Hiroyuki Yoshino, said that their subcompact sales will largely surpass their 2001 figure of 190,000 units although the total subcompact market is expected to stay at the same level as last year. He asserted that they can achieve the goal because target buyers for the That's and Life are different (female users for the Life). They also believe that compact users usually do not shift to subcompacts although the sticker price difference between the That's and their compact models is small. Their total sales target for 2002 is 920,000 units and 295,000 units for subcompacts.

Isuzu to produce all manual transmissions for their small trucks

Isuzu has decided to shift manual transmissions for the Elf to inhouse production, excluding overseas models, in line with model changes. Isuzu has been procuring a part of their manual transmissions for SUVs and the Elf from Kawasaki Heavy Industries. They plan to reduce overall costs (facility investment to logistics) by expanding inhouse production. For some overseas models especially those for South East Asia, they are scheduled to continue procurement from Kawasaki Heavy Industries because model change cycles are slow.

New JAMA Chairman assigned from Honda

On the 7th, JAMA revealed that Honda CEO, Yoshihide Nunekuni will be assigned as the next chairman of JAMA. They plan to officially decide it at a general meeting in May. This is first time that they chose their chairman from Honda. Toyota and Nissan have been alternately taking the chairman but they have decided to add Honda from this year. JAMA also plans to integrate Japan Motor Industrial Federation (sponsor of Tokyo Motor Show) and Japan Automobile Industry Employers' Association and accept GM Japan, the first overseas automaker, as member companies.

Mitsubishi Electric to supply EPS to DaimlerChrysler

Mitsubishi Electric has received orders for electronic power steering (EPS) from DaimlerChrysler in Europe with Koyo Seiko, a tier 1 maker for steering systems. The supplies are scheduled to start in 2003 for a new Mercedes compact. Mitsubishi Electric will take charge of brushless motors and ECUs and Koyo Seiko (at their French plant) will be responsible for assembling steering systems. Brushless motors will be produced at Himeji plant in Japan and ECUs will be manufactured at their new Czech plant. Mitsubishi Electric, a world leading motor and ECU maker, has been concentrating on development proposal to DaimlerChrysler after Mitsubishi Motors formed an alliance with DaimlerChrysler. EPS, which help improve fuel efficiency by 3 percent, compared to oil pressure type, and is widely used in Japan where compact cars are popular.

Central Motor to further strengthen sales to Toyota

Central Motor, who is superior in various model and small volume production, plans to aggressively expand engineering business especially for Toyota. In 2001, their production increased to 72,000 units due to production start of the Corolla Runx/Allex in July. However, cancellation of WiLL Vi production last December is expected to reduce 2002 production to 66,000 units. To break through this difficult condition, they plan to concentrate on production of the WiLL-VC, a new model equipped with G-BOOK (new onboard information terminal). The WiLL VC was displayed at 2001 Tokyo Motor Show and received good reviews.

February 7, 2002

Import car sales in January decline

JAIA announced on February 6 that import car sales in January fell by 4.9 percent to 15,000 units (see table for Import car ranking in January 2002). The figure declined for the fourth consecutive month. Figures, excluding vehicles produced by Japanese makers, also declined by 4.1 percent due to sales slump of popular brand models, including Volkswagen, Mercedes Benz and Opel. Sales of import passenger cars were 13,946 units, down 2.9 percent and truck sales were 258 units, down 41.6 percent. The top brand was Volkswagen followed by Mercedes Benz, but the two brand sales fell while sales of BMW, the third largest, increased. Brands with new models, including Alpha Romeo and Jaguar, showed large increases and Audi and Hyundai, who expanded their sales network, also gained sales.

Isuzu to handle other brand passenger lineup at their dealers

In line with cancellation of OEM supply of the Aska (Accord) from Honda, Isuzu has decided to reorganize their passenger car sales system. As Honda's RV lineup expands, cooperation between the two companies has been shrinking. The two companies agreed on passenger OEM supplies in 1993. Despite their decision to cancel sales of the Honda OEM model, in addition to shifting passenger car sales to GM AutoWorld, some Isuzu dealers hope that they will continue handling passenger cars. To respond to their requests, Isuzu plans to modify their system so that their dealers can handle passenger cars from other automakers. Major candidates are Fuji Heavy Industries, Suzuki and Honda. Fuji Heavy Industries and Suzuki are in the GM group.

Mitsubishi to produce OEM models in China

Mitsubishi is scheduled to start OEM compact car production in China from May. The model will be the Mirage Dingo and it will be supplied to an automobile company in Harbin. Mitsubishi plans to provide technology support without a capital tie-up. Annual production is expected to reach 30,000 units. They also plan to produce the Pajero at Peking Jeep which produces the Jeep Cherokee to increase competitiveness to catch up with anticipated expansion in the Chinese automobile market. Toyota has revealed that they will produce 30,000 Vitzs annually starting this autumn. Honda started Accord production in April and plan to add the Odyssey next spring.

Honda Fit

Honda Fit becomes the top model in January

On the 6th, JAIA announced January sales ranking. Three Nissan models captured places in the top 10, for the first time since August 1999. Toyota got five places and Honda's two models both placed in the top ten. The top model was the Honda Fit, followed by Toyota Corolla and Voxy.
(See table for January sales ranking)

Aisan Industry to produce aluminum die casting parts in China

Aisan Industry will soon start shifting 70 to 80 percent of aluminum die casting parts production to China. They plan to import them to Japan. Currently, they produce calibrators and throttle bodies in Tianjin, China. However, the implementation of requirements for meeting new exhaust regulations hindered increasing sales and as a result, plant operational ratios dropped. They intend to increase the ratio and reduce costs by shifting production of aluminum die casting parts to China. However, they plan to continue production of some volume in Japan in order to maintain stable supplies to Japanese automakers.

Yamaha develops highly efficient CO2 absorption system

Yamaha unveiled on the 6th that they have developed a new environmental technology using photosynthesizing plankton to absorb and stabilize CO2, 10 times the fixation efficiency of forests. They improved water condition control and photosynthesis technologies. They have succeeded in increasing photosynthetic density of Chaetoceros gracilis calcitrans by 600 percent. They have plans for further development and they hope to achieve 20 the fixation efficiency of forests.

Yen depreciation may damage the domestic market

Despite optimistic forecasts caused by recent depreciation of the yen ($1=over 130 yen), Toyota and Honda showed concerns that it will increase costs for overseas production facilities. In North America, Toyota plans to establish a 1,450,000 production system by 2003 by doubling TMMI production capacity to 300,000 units and starting the Lexus RX-300 production in Canada. Honda has also decided that there is no necessity for modifications to overseas production expansion plans. Operational ratio of Honda's domestic plants has already reached the maximum, which does not enable to increase exports. On the other hand, many automakers who are in the process of restructuring think the yen's depreciation will result in large profits from exports because they set exchange rate at $1=110 to 120 yen. However, they also think that establishment of long-term stable production systems is required to gain international competitiveness.

February 6, 2002

Nissan to adopt the first integrated telematics system for the March

Nissan announced on February 5 that they will start the first domestic integrated telematics service, called "CARWINGS", in March. Their telematics technology (Next Generation Information and Communication Concept 2003i) was unveiled at Tokyo Motor Show last October. By connecting to cellular phones, drivers use liquid crystal displays to receive the latest information, including maps and email messages, and can make hands-free phone calls. Nissan plans to offer onboard system for CARWINGS as an optional system, starting with the new March, which will be on the market at the end of February. New service offered for the new March includes: 24-hour real time driving information service, road guide service with GPS, hands-free calls and 24-hour emergency support from operators. Price for the onboard unit is less than 50,000 yen and annual fee for information service is 10,000 yen (4,000 yen for basic service).

GM Japan to achieve a 8 percent sales increase

On February 5, GM Japan announced that they set 2002 sales target at 27,000 units (including 2,000 units for the Cruze), up 8 percent, and expanded the sales network. They plan to increase GM AutoWorld dealers from the current 40 to 70 this year and open 20 showrooms for Opel over the next two years. Sales of GM vehicles in Japan have been decreasing since 1996. For new models, they are scheduled to introduce the Cadillac CTS and Opel Vectra to increase competitiveness.

Yamaha Motor achieves 30 percent weight reduction with a new aluminum casting technology

On the 5th, Yamaha Motor announced that they have developed a new technology, called Yamaha CF Aluminum Die Casting, that can reduce weight by 30 percent compared to conventional high pressure aluminum casting. They said that it can help reduce costs. They modified metal fitting vacuum procedures (50 millibar inside metal fittings) and improved temperature control. At the same time, they increased speed of liquid injection by 500 percent in order to create uniform and precise casting. With the new technology, they reduced thickness by 50 percent (up to 1.5mm) while maintaining strength. It can also form large parts over 3m. They plan to initially target motorcycles and marine engines and then plan to expand to automobiles. They invested 300 million yen for facilities.

Mazda to adopt large modules for the Atenza

Mazda has announced that they will adopt five large modules, including front end, side doors, fuel tanks, center panels and cockpits. They have entrusted model development and production to tier 1 suppliers and they also allowed them to choose parts makers for some parts to see how they proceed with expansion of modularization. Currently, in Japan there are no suppliers that can control total technology required for modularization.

Honda tries to keep the current high sales in 2002

Honda, who conducted upward adjustment of sales target last year, showed a sales increase in January 2002 although other large automakers struggled with a sales slump. As they mentioned, strong sales of the Fit and Mobilio, a sister model of the Fit, brought a rocket start this year. They think that introduction of the Odyssey Absolute also helped achieve this success. However, they are not so optimistic for 2002 because other automakers have revealed that they will strengthen their minivan lineup. Toyota introduced the Noah/Voxy and they plan to concentrate on sister models of the Vitz. Nissan is also scheduled to focus on March sales. In order to continue moving forward in these severe conditions, Honda plans to further improve dealer service to increase customer satisfaction by establishing a tougher training program.

Honda announces 2002 motor sports plans

Honda has revealed their 2002 motor sports plans. They plan to enter F1 international championships, Cart Series, Japan GT Championship, Road/motocross and trial world championships. They also said that they will open one make races with the Integra Type R. For F1, they will continue car development with BAR (British American Racing) and supply engines to Jordan Grand Prix. In FIM Road Race World Championship, they aim to achieve titles in all categories. They plan to enter the Moto GP Class racing with two RC211V, equipped with 4 stroke V5 cylinder 990 cc engine.

Suzuki introduces the Wagon R miki HOUSE

On the 5th, Suzuki introduces a limited-run version (3,000 units) of the Wagon R, their top subcompact model. The new version is Òmiki HOUSEÓ, which is designed in cooperation with an apparel maker. The miki HOUSE brand is well known for children's wear and very popular among young families. They used miki HOUSE logos for aluminum wheels, front fenders and back doors. Sticker price is 1,028,000 yen ($7,670, $1=134 yen) for 2WD models and 1,40,000 yen ($1,044) for 4WD models.

February 5, 2002

Nissan and Renault to further strengthen cooperation

Nissan has revealed that they have successfully integrated dealership back office functions with Renault for dealers in France, Netherlands and Switzerland. In their plan, they will complete integration in seven European countries by the end of 2003. At the same time, they plan to maintain their own brand identities. They expect that their cooperation will bring profits of 1 billion euros in five years (2000 to 2005) and their combined sales share in Europe will reach 17 percent. In 2001, their alliance allowed them to achieve 2.4 million sales in Europe (826,817 in France, 285,622 in Germany, 290,625 in Spain, 253,238 in Italy and 296,327 in the UK), 759,972 sales in North America (703,308 in the US), 734,389 sales in Japan, 374,245 sales in Central/South America and 213,258 sales in South East Asia/Africa. Their current world share is 9 percent (Nissan with 4.8 percent and Renault group with 4.2 percent.

Honda to stop production of the Z

Honda has decided to stop production of the Z, a subcompact, this spring. The Z was introduced in 1998 when the subcompact standards changed, but sales have not increased much recently. In addition to the sluggish sales, they plan to introduce a new subcompact, the That's, on the 7th. Honda adopted an underfloor mid-ship layout, in which powertrain is installed under the rear seat floor, for the Z and created roomy interior equivalent to 2 liter off-road vehicles. Its sales were high in the first two years (average monthly sales of over 1,000 units). However, sales plunged after dealers shifted focus to the Life, and since then subcompact competition between automakers has intensified.

Honda to introduce a FCEV in North America

Honda has announced that they will introduce a limited-run FCEV in 2003 for the North American market. On the other hand, Toyota has decided to introduce a FCEV in Japan in the same year. Both FCEVs will use pure hydrogen. Honda plans to utilize infrastructure in North America where hydrogen supply stations are better organized and Honda has solar energy stations at their research institute. Toyota is scheduled to establish systems on their own in cooperation with petroleum makers. In Japan, the government is now thinking about establishing hydrogen supply stations. The two companies have been approved for public road tests by the government.

Suzuki and GM to establish production systems in Asia

In response to free trade agreements in South East Asia, Suzuki and GM plan to strengthen ties for automobile production at Suzuki plants in Indonesia and India and GM Thailand plant (Asia Car). Although Suzuki and GM have been strengthening ties for production in Europe, North America and South America, in Asia they have not been conducting any prominent cooperation except for GM's entrusting compact car production to Suzuki. From now on, Suzuki will be leading GM compact car development in Asia and they plan to introduce new models having different platform from the Cruze, their first jointly developed model.

Toyoda Machine Works to expand production overseas

Toyoda Machine Works, an automobile parts and machine tool manufacturer, plans to expand production of automobile parts, especially in the US, although they are worried about revisions to Japanese and US automaker facility investment plans. Their second US plant in South Carolina will soon start operation and supply automatic transmission control valves and 4WD coupling rings to Toyota's US plant. They also plan to shift production of couplings for Ford to local production in 2003. In addition to this, they are strengthening local engineering and establishing an R&D center equipped with test courses. In Europe, their business has been in bad condition due to pound's appreciation. However, they plan to expand sales with TRW for oil power steering for commercial vehicles and establish production bases on the European Continent. In Asia, they intend to increase production items, including power steering pumps, steering parts, driving parts and motorcycle parts. They are also thinking about establishing pump production facilities in China, which they are expecting will become a global production powerhouse.

Jatco TransTechnology to change their name

On February 4, Jatco TransTechnology, a leading transmission maker, announced that they will change their name to Jatco as of April 1. They intend to strengthen their brand image by consolidating their company and brand names. Jatco, established in 1970, changed their name to Jatco TransTechnology in 1999 when they merged with TransTechnology, an independent company formed after Nissan spun off its AT section. Last October, Jatco TransTechnology agreed on business integration with automatic transmission division of Mitsubishi.

VGJ to strengthen used car business

Volkswagen Group Japan plans to concentrate on supporting used car sales for their dealers. They have set a 5 percent sales increase to 3,000 units by reorganizing comprehensive support programs covering everything from sales promotion to product guarantees. To better deal with stiff March sales competition, they are scheduled to start a low interest rate campaign (1.7 percent). They started an authorized used car business in 1998. Last year 67,000 used Volkswagens units were sold in the Japanese market, but only 2850 units were sold through authorized dealers.

February 4, 2002

Toyota to develop a new type HEV

Toyota has started development of new hybrid systems. The current hybrid system uses motors during startup in order to reduce gasoline consumption. The new system will use motors also during high speed driving by expanding motor operation range to further increase fuel efficiency. Their hybrid systems were first adopted to the Prius introduced in 1997 and last year they applied mild hybrid systems to the Estima. They have set sales target of HEVS at 300,000 units annually by 2005.

Hino to cooperate with Toyota for hybrid bus sales

Hino plans to strengthen cooperation with Toyota for hybrid bus sales in order to reduce costs and increase competitiveness. They plan to share expensive parts, including electric parts used in the Prius. They currently spend the same amount of costs as CNG vehicles for hybrid systems. In 1991, Hino introduced a large bus equipped with HIMR, their inhouse hybrid system, however, price increases of 7 million yen ($52,600) hindered sales expansion. Recently demands for clean vehicles have been sharply growing as a result of introductions of diesel and emission regulations. Hino also plans to procure CNG systems for large vehicles from Nissan Diesel to shift focus to hybrid vehicle development.

Compact car sales in January fall

(See tables for Car Sales for January)
On February 1, JADA announced January new car sales (excluding subcompacts). Honda and Daihatsu showed increases. Figures declined by 2.6 percent to 248,489 units while passenger car sales increased due to two-digit increases in compact sales. Cargo vehicle sales were the lowest ever for January (the lowest figures for both standard passenger cars and compact cars since they started statistics in 1968) because category of some minivan type vehicles, such as the Toyota Noah have changed to passenger cars. Bus sales increased for the fourth consecutive month.

Japan Mini Vehicles Association announced on the same day that subcompact sales in January declined, for the first time in four months, by 1.3 percent to 120,626 units. Although passenger car sales increased due to new model introductions, commercial vehicle sales dropped sharply. Automakers who introduced new models showed increases in passenger cars (Suzuki with the MR wagon, Daihatsu with the Max and Mitsubishi with the eK wagon). Cargo vehicles showed a two-digit decline due to a large decrease in truck sales (down 21.1 percent).

MR Wagon

MAX

eK Wagon

Truck associations in Japan announced decreases in standard truck sales for the month of January. Figures declined by 18.8 percent to 3,536 units. Both large and mid-size truck sales declined in two-digit (down 18.7 percent to 1,803 units and down 18.9 percent to 1,733 units). All makers (Hino, Mitsubishi, Isuzu and Nissan Diesel) also showed two-digit decreases.

Suzuki to introduce the 3 liter XL-7 for the North American market

Suzuki has decided to introduce the XL-7 (Grand Escudo) equipped with a 3 liter V6 engine in North America. The XL-7 is an SUV that is popular in the US. However, low horsepower in comparison to SUVs developed by the American Big Three has resulted in sluggish growth. To increase sales in the North American market, other Japanese automakers have also decided to enlarge engine size, including the Mazda MPV who has combined a 3 liter V6 with a 5 speed automatic transmission. Suzuki intends to increase North American sales by catering to local demands for greater horsepower and torque.

Volvo Cars Japan to set a 50 percent sales increase

Volvo Cars Japan plans to sell 600 vehicles in 2002, which is up 50 percent. In their mid-term plan, they are scheduled to achieve 1,000 unit sales in 2004. Their truck sales have been sharply increasing and in 2000 figures increased threefold. Last year, their sales increased by 40 percent to 402 vehicles despite economic instability. They expect their emphasis on high fuel efficiency and output while maintaining low emission levels will help achieve their goal. They will also increase their sales network to 200 locations in the near future from the current 41.

NHK to produce springs in China

NHK is thinking about producing coil springs for automotive suspensions in China. This is in response to local production start-ups by Toyota and Honda. They are scheduled to establish a 100 percent subsidiary this year. In China, they currently produce seats for Isuzu in Chongqing and offer HDD suspension inspections in Shanghai. They also provide technological support for engine valve spring design to Shanghai Automotive. However, their major products are automotive suspension coil springs and prior to this they have had no plans to produce them in China. They plan to strengthen coil spring production in China to increase their world share. NHK controls 20% of the global market for automotive suspension coil springs.

February 1, 2002

Automakers reveal 2002 business targets

Eight Japanese automakers have announced their 2002 sales and production targets. Nissan, Mitsubishi and Mazda have not revealed their targets yet. Although automakers anticipate that the domestic automobile market will continue to labor under severe conditions in 2002, all automakers, excluding Fuji Heavy Industries, expect that aggressive new car introductions will result in sales increases. Honda, Suzuki and Nissan Diesel think that their domestic production will increase while all automakers, excluding Isuzu, set their overseas production targets upward. Honda plans to maintain their current high production pace backed by domestic sales increases. Suzuki also plans a sharp domestic production increase due to the completion of a new Konan assembly line in March in addition to joint production with GM. Overseas, Toyota expects that their production will increase because they will start small car production in China this autumn. Due to overseas production expansion and economic instability in major countries, exports are expected to drop.

2002 sales and production plans

-	Domestic		Overseas		Domestic		Overseas
-	Production				Sales
Toyota	3,200	-4.8%	2,070	15.6%	1,750	+1.7%	1,480	-10.8%
Honda	1,310	+2.7%	1,570	+14.3%	920	+7.0%	390	-6.0%
Suzuki	941	+11.2%	832	+7.6%	660	+6.3%	274	+7.9%
Daihatsu	711	-6.7%	140	+5.0%	550	+1.5%	74	+14.5%
Fuji Heavy	460	-0.6%	111	+4.7%	287	-0.9%	179	+2.3%
Isuzu	192	-12.4%	213	-9.3%	70	+5.1%	130	-18.0%
Hino	36	-4.6%	-	-	38	+9.4%	19	+2.3%
Nissan Diesel	27	+11.0%	-	-	18	+7.8%	11	+6.3%

(unit:1,000 units)

Fuji Heavy Industries develops new small cars

Fuji Heavy Industries has started development of small cars, ranging from 1 to 1.3 liters. Engines for the new small cars will be supplied from the GM group. They are scheduled to use a new subcompact platform which they plan to complete development of in 2003. After completing small car development, Fuji Heavy Industries will have full passenger car lineup from subcompacts to 3 liter models. The domestic small car market has been growing due to strong sales of the Toyota Vitz (Yaris) and Honda Fit (Jazz). While strengthening small car development, they also plan to emphasize their unique technologies such as horizontally opposed engines and 4WD systems in order to improve their brand identity.

Fuji Heavy Industries to restructure their supply system

Fuji Heavy Industries, who produces 5 models, has decided to aggressively expand outsourcing and sub assembly in line with full model changes of the Forester and Legacy. With Shigeru who has been their main supplier for instrument panel modules, Fuji Heavy Industries expects Shigeru's alliance with Lear will bring substantial benefits. In terms of cooperation with GM, their procurement through GM's WWP (world wide purchase) will soon reach 10 percent of their total purchase. They have also started joint purchase of parts for new cars with GM, including glass, tires, alternators, batteries, belts and airbags. With Suzuki who is also in the GM group, Fuji Heavy Industries has been increasing cooperation for procurement although they have canceled parts sharing for subcompacts. In order to achieve stead success, they plan to choose one supplier per system.

Ford Japan sets sales increases for 2002

On January 31, Ford Japan announced that they have set 2002 sales target at 12,000 units, which is up 8 percent (up 23 percent to 10,000 units for Ford model and down 34 percent to 2,000 units for sister models of Mazda). They plan to expand lineup for the Focus and Explorer and introduce the Thunderbird. They also plan to renew their current 30 dealerships. In their mid-term business strategy (up until 2003), they declared their desire to achieve 25,000 annual sales. However, they think that severe conditions in the current market will make it difficult to achieve a sharp sales increase this year. In 2001, their sales were 11,025 units, which is about 4,000 units lower than their initial plan.

Sales of Nissan Diesel ESCOT trucks expand

Nissan Diesel announced on January 31 that sales of trucks equipped with ESCOT, an electronic control transmission, have exceeded 5,000 units. In the first half of 2001, 25 percent of their large trucks (loading capacity of over 8 tons) were equipped with the unit. The ESCOT does not require clutch operation during driving and features high torque transfer and endurance. Although price for ESCOT trucks is 350,000 to 450,000 yen ($2,600 to 3,000) higher than standard trucks, demands for ESCOT have been increasing due to its smooth performance and high level of drivability.

ULSAB-AVC project achieves 30 percent weight reduction

On the 31st, ULSAB-AVC project team, comprising of 33 global steel makers, revealed four virtual models that have weights 20 to 30 percent smaller and prices over 50 percent lower than commercial cars (Ford Focus and Audi A6). The team includes Nippon Steel, NKK and Kobe Steel. They plan to use the results for joint research with automakers. Four models include 1.5 liter (C class), 2.5 liter (PNGV class) gasoline and diesel engine models. Every part is designed on computer and they used high tension steel materials for almost 100 percent of composite parts. Steel makers joining the project are free to use the data on their business base.

Weight
933 kg: C class gasoline car
966kg: C class diesel car
998kg: PNGV gasoline car
1,311kg: PNGV diesel car
Cost (calculated based on annual production of 225,000 units)
$9,190: C class gasoline car
$9,890: C class diesel car
$9,538: PNGV gasoline car
$10,238: PNGV diesel car

New car released in April

TOP PAGE

NEW CARS

February, 2002

2/5		-Miki House version for the Wagon R by Suzuki (picture on the right) -Minor changed Focus by Ford Japan
2/6		-Clean engine version for the Premera by Nissan
2/7		-Honda announced the introduction of the That's on Feb. 8. -Audi Japan announced the introduction of the A4 Avant, a new stationwagon for the Audi A4, on Feb. 18. -Minor changed Samber by Fuji Heavy Honda That's
2/8		-Fuji Heavy announced the introduction of the 2002 Blitzen, a limited-run version for the Legacy Touring Wagon B4, on March 7.
2/12		-New Forester by Fuji Heavy Industries -New version for physically handicapped people for the Wgaon R by Suzuki Subaru Forester
2/15		-Spiano, an OEM model from Suzuki, by Mazda Mazda Spiano
2/18		-Smoother F, a special version equipped with clutch less manufal transmission for the Forward, by Isuzu -Minor changed G Class by DaimlerChrysler
2/19		-GM Japanannounced the introduction of the Opel Astra Cabrio on March 9.
2/20		-Volkswagen Japan announced the introduction of a turbo-charged version for the New Beatle on Feb. 26. -Minor changed Mercedes Benz Transporter T1N by DaimlerChrysler -GM Japanannounced the introduction of the Chevrolet Corvette on March 9.
2/21		-Minor changed Mustang by GM Japan -No boundaries Edition, a special version for the Escape, by Ford Japan
2/26		-Nissan announced the introduction of the new March on March 5. -LPG engine equipped Canter, a small truck, by Mitsubishi Nissan March
2/28		-Minor changed Canter, clearing the latest noise regulations, by Mitsubishi