Business plan

Business Plan for Fiscal 2003
In consideration of various issues confronting the auto parts industry today, we have picked up
following subjects as priority items for the whole association to tackle for fiscal 2003.
(1) Response to issues of small and medium enterprises
In a radically changing business climate surrounding the auto parts industry, we step up activities to
help our small and medium-scale member companies solve their problems primarily by our Policy
Committee for Small and Medium-Sized Enterprises with the cooperation of related committees and
regional branch offices. Assistance programs include following major items.
①From the viewpoint of offering more business opportunities for small and medium member
1. We will hold a JAPIA/OESA Joint SME Committee Meeting in Tokyo to encourage a broader
exchange between small and medium enterprises of the U.S. and Japan.
2. We are planning a joint exhibition and participation program for small and medium companies to
make it easier for them to participate in overseas auto shows including Tokyo Motor Show and
International Auto After Market Show.
②As an assistance to small and medium enterprises for improving environmental protection and
quality control, we make a plan under the leadership of our Policy Committee for Small and
Medium-Sized Enterprises to hold lectures and seminars to facilitate acquisition of ISO14000, and
meetings to explain about QS9000 and ISO/TS16949 certification, as well as to provide related
③In order to provide small and medium member companies with sufficient information on the
Chinese market that is getting an increasing attention, we are planning to undertake such activities
as presenting actual cases of small and medium companies that have entered into the Chinese
market, holding lectures by experts, and conducting surveys and investigations of the Chinese
automobile and auto parts industries.
(2) Research on how to maintain and strengthen competitiveness of the Japanese auto parts industry
The liberalization policy of the Chinese automobile market is rapidly stimulating inroads into China
of automobile makers from the U.S., Europe and Japan. This trend is becoming a factor that will bring
about a change in the future overseas strategy of Japanese parts makers operating in ASEAN and other
Asian areas. A free trade agreement between China and ASEAN countries, if concluded, would
compel Japanese auto parts makers to review their existence and operation in the region.
From this perspective, we will study the future prospects of the Japanese auto parts industry in Asia
including ASEAN for fiscal 2003 as a continuing investigation theme of our study team of
competitiveness started in the previous fiscal year.
(3) Stepped-up response to intellectual property right issues
Due to an increasing importance of dealing with intellectual property right issues, we last year
organized “Intellectual Property Right Subcommittee” under our International Cooperation Committee
with the aim of stepping up responsiveness. Recently there is also a growing need to cope with these
problems in tandem with organizations related to automotive and non-automotive industries. It is also
getting important to deem countermeasure against imitation and protection of intellectual property
right major items of management strategy. Under this situation, we prioritize following items to step
up our activities for this fiscal year.
①Based on the result of the survey conducted in the previous fiscal year for our member companies
on damages caused by imitation products, we will launch a project of studying countermeasures to
assist member companies.
②For this fiscal year we will also address important issues other than imitation problems.
③We will work closer with the Intellectual Property Right Sub-committee of Japan Automobile
Manufacturers Association(JAMA) and discuss how to deal with imitation and intellectual property
right issues by the automobile industry as a whole.
(4) Promotion of international exchange
International exchange activities of JAPIA are expanding year by year. For fiscal 2003, we continue
to expand activities emphasizing on following items.
①The seventh Trilateral Meeting participated by three auto parts industry organization in the U.S.,
Europe and Japan will be held in Tokyo in October, 2003. This annual meeting, which has been held
six times and established as a regular event, is changing its character from the place for a mere
exchange of information to the arena for discussion of common issues confronting auto parts
makers including trade relations with automakers, and dialogue on broader policy issues such as
coordinated approach to standards certification issues. JAPIA will study a scheme for handling a
wider range of topics including dialogue about strategic issues of management.
②In January, 2003, the Japan office of Motor & Equipment Manufacturers Association (MEMA), a
U.S. industry association, moved to the JAPIA building. This movement is symbolic of close
friendly ties between the two organizations. To deepen this relationship further, we will aggressively
launch new cooperative projects including a joint sponsorship of seminars, an accelerated exchange
between small and medium companies of the two countries as mentioned before and planning of
new activities with goals common to both U.S. and Japanese auto parts makers.
③Relationship with the Chinese auto and auto parts industries is also in progress. We sent our
observation mission to China during fiscal 2001, and in fiscal 2002, we established relationship with
China Association of Automobile Manufacturers and cities of Wuhan, Shenyang and Wuxi.
For fiscal 2003, we are planning to send our second delegation to China to deepen our relationship
by discussion with China Association of Automobile Manufacturers and visit to local
manufacturers, as well. We are also going to provide more information on China to our member
④As regular events we will host the 32nd Japan/Korea Auto Parts Industry Meeting in Japan. Also, as
international cooperation activities, we will participate in APEC Automotive Dialogue, AMEICC
WG on Automobile Industry, Roving Expert Program to ASEAN Countries and so forth. Moreover,
we will accelerate exchange with related organizations in leading countries, if it becomes necessary.
(5) Response to environmental issues
Prevention of global warming, reduction of waste materials, reduction of hazardous materials for air
pollution, countermeasures for such environmental issues are getting more and more important year
after year. These issues must be responded appropriately by all means for sound growth of the
automobile industry as well. Following activities have been selected as priority items to be pursued
aggressively for fiscal 2003.
①At present more than 3,000 kinds of substances are registered by JAMA as substances inflicting
burden on the environment. We study each of such substances from the point of a supplier and
propose an idea of how to reduce or improve them.
②To wholeheartedly cooperate as the auto parts industry in measures against global warning
advocated by Nippon Keidanren, we continue to follow up our voluntary action pla n and steps to
reduce industrial waste, as well as work on preventative measures of such hazardous substances as
dioxin, soil pollutant, environmental estrogen, and so forth, that are emerging as new sources of the
environmental pollution. In particular, it will become important to provide the community with
ample risk information on soil pollutant, as the soil pollutant prevention law goes into effect. At the
same time, sharing such information among member companies about this new legislation will be
③With the start of International Material Data System(IMDS), we give assistance to member
companies in their handling of this data system by analyzing and improving operational problems.
We also consult with JAMA for solution of such problems.
④Concerning the automobile recycling act, which is coming into force during fiscal 2003, we will
study various measures from the standpoint of the auto parts industry, such as publication of
recycling standards and of parts containing environmentally hazardous substances, reduction of
those materials, and promotion of 3R(Reduce, Reuse and Recycle). We provide member companies
with the result of our study for their use as guidelines.
We appropriate the budget required for a share of this year ’s operation expenses of Japan
Automobile Recycling Promotion Center to support their operation.
(6) Response to standards and safety issues
Recently in the engineering area, international harmonization in standards and certification is greatly
advancing and is rapidly being globalized. With the introduction of the device recall system, the
environment around engineering and safety issues is making a big change. Under this situation, JAPIA
is going to take a positive step to deal with following major issues on behalf of the auto parts industry.
①Regarding Global Agreement on Technical Regulations(’98 Agreement), three major industry
organizations (JAPIA/MEMA/CLEPA) have concluded an agreement to address this issue jointly
and in cooperation. Based on this agreement, we will positively participate in the trilateral meeting
and other international meetings for drafting unitary world standards on the basis of parts.
②In connection with the trend for international harmonization of standards, we will participate in
various activities of Japan Automobile Standards Internationalization Center (JASIC) for working
on domestic standards as well as studying international harmonization. We will also continue to
make financial contribution to JASIC activities in fiscal 2003..
③Asian countries such as China and India with emerging automobile markets are introducing their
own system of standards certification, posing a serious problem of coordination with the system of
our country. Therefore, we are going to investigate their standards certification systems, and pursue
harmonization through exchange of opinion and information with those countries..
④During this fiscal year the device recall system is scheduled to be introduced. In the area of auto
parts a child seat is expected to be included in the list of devices for mandatory recall. We will study
operational and technical problems arising from the introduction of the system, and look for counter
measures after enforcement..
⑤The third party certification by ISO/TS16949(Automobile sector quality system standards) is in
progress in the U.S. and Europe. QS9000 is scheduled to be terminated by December, 2006.
Necessity for certification by ISO/TS16949 is likely to increase. So, we will try to offer more
information to our members. Also, we will work on improving problems involved in the
certification system, such as shortage of certification facilities and inspectors in conjunction with
related organizations including JAMA.
(7) Response to electronic communication
In response to growing electronic communication in the automobile industry on the global scale , we
will pursue following projects in cooperation with JAMA, Japan Automobile Research Institute
(JARI ) and other related organizations.
①Japanese Automotive Network eXchange (JNX), an industry-wide standard network inaugurated in
November, 2000 has to be put into full operation by fiscal 2004. In collaboration with JAMA, we
will try to expand the connection network and applications to contribute to stable operation of the
network, as well as to provide assistance to member companies. We will also proceed with
development and implementation of a JAPIA standard application, which is applicable to all JAPIA
member companies, as “an E-market place” about auxiliary materials.
②We will dispatch our representative together with a JAMA representative to a regular meeting of
AIAG/ODETTE/JAMA・JAMA that is attended by experts of electronic information of three
organizations. We will endeavor to make our opinion of the auto parts industry reflected on the
agenda of international standards.
(8)Reinforcement of information function
①We have been providing various kinds of information required by our member companies since we
opened the JAPIA website in fiscal 2000. We are going to reinforce our capacity and function of
providing information to better suit interests and requirements of our members by reviewing the
content of information.
②We will make further efforts to offer to our members more information, particularly on new
technical topics, such as fuel cell batteries, higher electric voltage up to 42 volt, safety technology,
and fuel trend.