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Auto Industry Leaders Admit Responsibility for Seven Key Challenges

Industry leaders, namely the chair and vice chair of JAMA, have acknowledged and committed to addressing seven substantial obstacles besetting the automotive sector. During a recent press meeting, they discussed their extensive, cross-industry projects.

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Auto Industry Leaders At JAMA Admitting Responsibility for Seven Key Challenges
Auto Industry Leaders At JAMA Admitting Responsibility for Seven Key Challenges

Auto Industry Leaders Admit Responsibility for Seven Key Challenges

Japan Automobile Manufacturers Association (JAMA) Tackles Challenges in the Evolving Automotive Industry

The Japan Automobile Manufacturers Association (JAMA) has unveiled its strategy to address seven pressing issues in the rapidly transforming global automotive sector. The new leadership team, headed by Chairman Masanori Katayama of Isuzu, has taken over from former Chairman Akio Toyoda of Toyota, in January.

The seven key areas of focus for JAMA are:

  1. Electrification and Next-Generation Vehicle Technologies JAMA is placing a strong emphasis on electric vehicles (EVs), autonomous driving technologies, and advanced driver assistance systems (ADAS). Japanese automakers and suppliers are investing heavily in these areas to meet rising consumer and regulatory demands.
  2. Commercial Vehicle Industry Consolidation and Future Mobility JAMA is supporting the merger of major commercial vehicle manufacturers Mitsubishi Fuso and Hino Motors, alongside parent companies Daimler Truck and Toyota. This collaboration aims to create synergies for future commercial vehicle solutions, emphasizing efficiency and new mobility technologies.
  3. Monozukuri (Manufacturing Excellence) Maintaining and evolving Japan’s renowned monozukuri approach remains a priority, focusing on efficient, quality-centric manufacturing processes to stay globally competitive.
  4. COVID-19 Response and Supply Chain Stability Addressing ongoing impacts from COVID-19 to ensure a stable supply chain and smooth production operations has been a priority at least through early 2024.
  5. Promoting Diversity in Engineering and Workforce Development JAMA is supporting initiatives to encourage the participation of female engineers and foster an inclusive workforce within the automotive sector.
  6. Vehicle Cybersecurity and Integrated Security Solutions With the rise of connected and smart vehicles, JAMA promotes the development and adoption of robust cybersecurity technologies and integrated vehicle security systems using AI and IoT to protect consumer vehicles.
  7. Cultural and Social Integration of Automobiles in Japan Beyond technology, JAMA aims to weave automobiles deeply into Japanese culture and daily life, preserving their significance in society.

JAMA's strategy to tackle these challenges includes industry collaborations and mergers, engineering partnerships and technology investment, workforce development initiatives, a focus on cybersecurity, and leadership and cultural engagement. The association is working with various companies and government officials to speed up an all-Japan effort that extends beyond the auto industry.

The auto industry, including JAMA members, has sustained wage increases above the average among large manufacturers. However, following suggestions that a member company violated the Subcontract Act, the Japan Fair Trade Commission has asked JAMA to make examples of infringing conduct widely known to prevent future violations. JAMA will continue to work with national government ministries and local authorities in the affected region to provide assistance in accordance with the needs of communities.

In the most recent negotiations, nearly all JAMA member companies fully met worker demands to raise wages to offset the cost of living. The first of these issues, enhancing logistics, is the personal area of responsibility for the Chairman of JAMA. The vice chairmen of JAMA have outlined their respective challenges and accompanying ambitions in various areas. Chairman Katayama expressed condolences for the victims of the Noto Peninsula Earthquake that occurred on January 1 and offered sympathy to those affected by the disaster.

The Fair Trade Commission has named JAMA member companies among businesses found to have left prices unchanged without consulting partners. JAMA will ensure that all member companies explicitly consult with partners during price negotiations and adhere to guidelines for passing on shifting labor costs in pricing. The Japan Fair Trade Commission has urged further improvements to transactions across the industry, including a revision of how cost reduction requests are made to ensure they comply with laws and regulations related to future price shifts.

JAMA will focus on these seven issues over the next two years to develop the auto industry into a mobility industry, including enhancing value and efficiency in logistics, commerce, and mobility. The association held a press conference on March 22, 2024, to discuss its strategy and progress in addressing these challenges.

  1. The Japan Automobile Manufacturers Association (JAMA) is working on strengthening their presence in other industries, such as the finance and aerospace sectors, to create synergies and innovations for future mobility solutions, building upon their expertise in electrification and next-generation vehicle technologies.
  2. As part of JAMA's efforts to pursue future mobility solutions, the association is engaged in collaborative discussions with key players in the finance and aerospace industries, aiming to invest in or develop integrated solutions that combine advanced transportation systems, autonomous vehicles, and other next-generation technologies for improved efficiency and sustainability.

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