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JAMA North American Office 1050 17th Street, N.W., Suite 410 Washington, D.C. 20036-5518, U.S.A. Tel: +1 202 296-8537Fax: +1 202 872-1212http://www.jama.org

JAMA Singapore Representative OfficeGB Building, 9th Floor #09-03/04 143 Cecil Street Singapore 069542 Tel: +65 62 21-5057 Fax: +65 62 21-5072

JAMA Beijing Office Unit 1001B, Level 10, China World Tower 2 No.1 Jian Guo Men Wai Avenue Beijing 100004 ChinaTel: +86 10 6505-0030 Fax: +86 10 6505-5856

How to contact JAMA

Please visit us at:www.jama-english.jp

September 2011

Common Challenges,Common Future

Japanese Auto Manufacturers Contribute to the Competitiveness of Europeʼs Motor Industry

2011

Contents

2

Japanese Auto Manufacturers Contribute to the Competitiveness of Europe’s Motor IndustryCommon Challenges, Common Future

Foreword

Production in the European Union

Research & Development in the European Union

EU Production and Exports

by Japanese Automakers

Investment and Employment

Japanese Automakers’ Purchases of EU Parts

News from Our Members

Automotive Ties between Europe and Japan

3

10

11

4

6

8

8

9

3

Japanese Automakers in the EUPromoting EU-Japan Cooperation on Economic Integration

The Japanese automobile industry would like to express its profound gratitude to the governments and people of

Europe for their kind messages and support following the devastating earthquake and tsunami in March this year.

The disaster created a very challenging environment for the automotive and many other industries in Japan. To get

vehicle production back on track and to limit as far as possible the impact on European production, automakers and

suppliers have been working together closely for the reconstruction of the sector as a whole. Encouragingly, the

automotive industry is now on the road to recovery.

JAMA member companies make a significant economic contribution in Europe while striving to ensure the

sustainability of the automotive industry. In 2010 JAMA members operated 13 production plants and 12 R&D

centres in the EU; manufactured 1.25 million vehicles in the EU, or more than two-thirds of the Japanese-branded

vehicles sold in the region; and in those operations as well as in sales distribution and other activities, employed

over 146,000 people across the EU. In addition, EU-made parts purchases totalled €10.96 billion, while exports

from the EU of EU-made Japanese models reached 94,260 units.

At the EU-Japan Summit on 28 May, leaders agreed to start the process for negotiations for a deep and

comprehensive FTA/EPA, and decided to start discussions with a view to defining the scope and level of ambitions.

JAMA welcomes this decision. Moreover, with the EU-Korea Free Trade Agreement coming into force, we look

forward to a swift conclusion to the scoping exercise, the early start of negotiations, and an agreement between the

two sides in order to ensure balanced competition between Korean and Japanese cars sold in the EU.

In support of a sustainable automotive community in Europe, JAMA and its members actively endorse the CARS 21

discussions on achieving low-carbon road transport. Both the EU and Japan are engaged in a number of

public-private and private-sector collaborations to encourage the use of environmentally-friendly cars in Europe,

where JAMA members furthermore will be manufacturing EVs and lithium-ion batteries, in addition to hybrids. We

believe that stronger economic cooperation between the EU and Japan bolsters these sorts of collaborative

ventures and investments, and thereby contributes significantly to the pursuit of a low-carbon society and

sustainable development.

Following Japan’s accession to the 1958 Agreement, UN/ECE Regulations have been progressively adopted in

Japan, clearly demonstrating the government’s intention to pursue mutual recognition. In addition, the Japanese

government and the European Commission are now working towards the introduction of International Whole

Vehicle Type Approval (IWVTA). This cooperation and commitment between Japan and the EU in support of

IWVTA will encourage international harmonisation of automotive technical standards and help advance automotive

safety and environmental efficiency, which in turn will bring benefits to the automotive industry, users and

governments alike.

Japanese automakers will continue to contribute to the development of the automotive industry in the EU by

strengthening not only economic but also environmental, technical and other forms of collaboration between Europe

and Japan.

Production in the European Union Production Facilities in the European Unionp Production Facilities in thhe European Unionp

4

Location(Start of Operation) Products EmployeesManufacturer Equity Shares

UnitsProducedin 2009

TotalInvestment

(million)

UnitsProducedin 2010

5

Company Emploedd0

er L

(Start

UNITED KINGDOM

1 Nissan Sunderland(1986)

Nissan MotorManufacturing (UK) Ltd.

(Nissan Motor Manufacturing Sunderland Plant)

Nissan Europe 100%

338,150 423,262 4,917GBP 2,693(EUR 2,985)

Micra, Note, Qashqai, Juke

2 ToyotaBurnaston,

Deeside(1992)

Toyota Motor Manufacturing

(UK) Ltd. (TMUK)TME 100%

127,000 89,000

137,000132,000 3,100 EUR 3,700Avensis, Auris, Auris Hybrid

Engines

3 Honda Swindon(1992)

Honda of the UK Manufacturing Ltd.

(HUM)

Honda Motor Europe 86.32%

Honda Motor 13.68%

75,583 139,264 3,000 GBP 1,440(EUR 1,596)

Civic (3D, 5D), CR-V, JazzEngines

4 Toyota Valenciennes(2001)

Toyota MotorManufacturing France

S.A.S. (TMMF)TME 100% 208,000 157,000 3,500 EUR 960Yaris

(HUM) 13.68%

4 Toyota enciennesValToyota Motorf t i FM TME 100%T 08 00020 157 0000 003 50 EURE 960Yaris

FRANCE

THE NETHERLANDS

8 MitsubishiBorn(1991)

Netherlands Car B.V. (NedCar)

MMC 85%MME 15% 50,937 28,525 1,417 EUR 1,483

(1991-2005)Colt, Outlander

6 Toyota Ovar(1968)

Toyota CaetanoPortugal, S.A.

(TCAP)

TME 27%Others 73% 2,000 2,500 300 JPY 30,000

(EUR 258)Dyna, Hiace

7 Tramagal(1996)

Mitsubishi Fuso Truck Europe S.A. (MFTE)

Mitsubishi Fuso100% 2,921 5,929 333 EUR 57.9Canter

6 Toyota OvarToyota CaetanoTPortugal S A TME 27%

2 000 2 5000 0030 Y 30,000JPYDyna Hiace

PORTUGAL

Mitsubishi Fuso

( )S.A.S. (TMMF)

SPAIN

5 Nissan Barcelona, Avila,

Cantabria(1983)

Nissan Motor Iberica S.A. Nissan99.79%

52,502 104,704 4,629

EUR 2,822 (including

Avila &Cantabria

plants)

Primastar (Renault Trafic, Opel Vivaro), Navara,

Pathfinder, NV200, Atleon, Nissan Cabstar

(Renault Trucks Maxity),Diesel engines,

Manual transmissions, Engines & Axle parts

9 Suzuki Esztergom

(1992)Magyar Suzuki

CorporationSuzuki97.5%

180,166 170,031 3,010Splash,Swift,SX4

( )( ) 991 2005)(19

9 S kisztergomEsMagyar Suzuki Suzuki 80 16618 170 0311 103 01

Splash,Swift

HUNGARY

10 Isuzu Tychy(1999)

Isuzu Motors Polska Sp.zo.o. (ISPOL)

Isuzu 40%GM 60% 123,000 162,000 568 PLN 827

(EUR 208)Diesel engines

11 Toyota Walbrzych

(2002)

ToyotaMotor Manufacturing

Poland Sp.zo.o (TMMP)

TME 94%Aisin 6%

532,000369,000

531,000332,000

2,000 EUR 430Transmissions,

Engines

12 Toyota Jelcz-Laskowice

(2005)Toyota Motor IndustriesPoland Sp.zo.o. (TMIP)

TME 60%TIC 40% 68,000 62,000 800 EUR 250Engines

( )p SX4

10 IsuzuTychyIsuzu Motors Isuzu 40%

3 00012 162 0000 6856 PLN 827PDiesel engines

POLAND

Japanese Auto Manufacturers Contribute to the Competitiveness of Europe’s Motor IndustryCommon Challenges, Common Future

13 Toyota Kolin(2005)

Toyota Peugeot Citroën Automobile Czech, s.r.o.

(TPCA)

TMC 50%PSA 50% 100,000 83,000 3,300 EUR 640Aygo 13 Toyota Kolinota Peugeot CitroënToyo n

bil C hA tTMC 50%

00 00010 83 0000 003 30 URE 640Aygo

CZECH REPUBLIC

MMC: Mitsubishi Motors CorporationMME: Mitsubishi Motors Europe B.V.TMC: Toyota Motor Corporation

EUR values calculated as per exchange rate on 1 July 2011. TME: Toyota Motor EuropeT I C: Toyota Industries CorporationPSA : PSA Peugeot Citroën

1

2

3

4

55

8

6

7

9

10

11

112

13

Toyota Motor Manufacturing France S.A.S.,Valenciennes, France Honda of the UK Manufacturing Ltd., Swindon, UK

N/A

Japanese automakers manufacture vehicles and engines in Europe to meet the needs of European consumers.

Japanese automakers currently operate13 production facilities in eight EU countries.

Japanese automakers manufactured1.25 million vehicles and employed 30,874 people in their EU production operations in 2010.

Research & Development in the European Union R&D Facilities in the European Unionp p R&D Facilities in the Eurropean Unionp

6

Headquarters, Division Offices

Manufacturer Employees Current Functions

7

Company HD

M

1 Honda SwindonHonda R&D Europe (UK) Ltd. 1,2,3,5,6,7,8,12

2 Nissan LondonNissan Design Europe Ltd. 56

N/A

N/A

4

N/A3 Honda OffenbachHonda R&D Europe (Deutschland) G.m.b.H. 1,2,3,6,8,12

4 Isuzu GustavsburgIsuzu Motors Germany G.m.b.H. 125 1,2,3,10,11,12

5 Mazda OberurselMazda Motor Europe G.m.b.H. 69 3,4,6

6 Mitsubishi TreburMitsubishi Motor R&D of Europe G.m.b.H. 41 1,2,3,10,11,12

7 Toyota KölnToyota Motorsport G.m.b.H. 150 2,3,9

9 Toyota NiceToyota Europe Design Development S.A.R.L. (ED2) 35 4,5,6,7,8

10 Toyota Zaventem, BelgiumBurnaston, UKToyota Motor Europe NV/SA 440 1,2,3,5

11 Nissan

Cranfield, UKBarcelona/Madrid, Spain

Brussels, BelgiumBrühl, Germany

Nissan Technical Centre Europe Ltd. 693 2,3,6,7,8,10,11

8 Subaru Ingelheim am RheinSubaru Test & Development Center (STCE) 8 3,4

Burnaston, UK

Cranfield, UK

Key to Functions: 1. Technical support for procurement of

parts for local production

2. Evaluation of parts

3. Evaluation of vehicles

4. Styling and general design

5. Parts design

6. Vehicle design

7. Prototype production

8. Marketing research

9. Development of racing cars

10. Engine application development

with vehicle validation

11. Type approval and homologation

12. Field problem investigation

1 2

1110

1155

8

55 78 6

773311

6 3

4

9

1111

Japanese Auto Manufacturers Contribute to the Competitiveness of Europe’s Motor IndustryCommon Challenges, Common Future

UNITED KINGDOM

SPAIN

GERMANY

FRANCE

BELGIUM

UNITED KINGDOM

UNITED KINGDOM

BELGIUM

GERMANY

, y

BELGIUM

12 Subaru ZaventemSubaru Europe N.V./S.A. 44 2,5,8,11,12

111112.10

Nissan Technical Centre Europe Ltd., Cranfield, UK Mazda Motor's European R&D centre in Oberursel, Germany

Japanese automakers conduct R&D and design activities in conjunction with their production operations in Europe.

Japanese automakers currently operate 12 R&D and design centres in five EU countries.

R&D and design activities in the EU are aimed at meeting the specific needs of the European market.

JAMA members’ R&D and design activities in the EU employed1,824 people in 2010.

EU Production and Exports by Japanese Automakers

Investment and Employment

p y p

8

In 2010, EU production by Japanese automakers increased to 1.25 million units.

Also, exports of Japanese models produced in the EU rose very significantly in 2010 _ to 94,260 units from the 56,173 units exported in 2009.

9

(in units)

Note: EU27 (EU15)

p y

By creating high-skill jobs, Japanese automakers have contributed to the dynamism of the EU economy.

In 2010,146,096 people were employed through the activities of Japanese automakers in the EU:● 32,698 directly, with 30,874 in production and 1,824 in R&D.

● 113,398 indirectly, by headquarters and parts distribution centres as well as in distribution, financial services and sales.

Japanese Auto Manufacturers Contribute to the Competitiveness of Europe’s Motor IndustryCommon Challenges, Common Future

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

1,69

3,15

1 (1

,306

,209

)

812,

163

(743

,774

)

2009 20102001 2002 2003 2004 2005 2006 2007 2008

Exports to the EUEU production

Source : JAMA

1,13

6,14

5

(85

5,62

0)

1,02

2,69

8 (

939,

034)

810,

181

(780

,750

)

1,10

2,55

6 (

1,01

5,74

8)

864,

941

(837

,639

)

1,24

5,46

9 (1

,156

,237

)

1,01

9,75

3

(988

,523

)

1,29

6,51

6 (1

,223

,844

)

1,03

7,81

2

(987

,299

)

1,36

9,55

6 (1

,233

,887

)

897,

704 (

856,

791)

1,50

9,40

2 (1

,345

,631

)

923,

658

(886

,906

)

1,78

9,87

5 (1

,450

,757

)

919,

421

(858

,492

)

542,

215

(512

,187

)

1,25

0,22

6 (9

97,2

75)

568,

508

(536

,203

)

New Investment and Employment ActivitiesCompanyname Location Target

dateInvestment target

Job creation

Investment(million)

Toyota Motor Manufacturing France S.A.S.

Valenciennes,France Mid-2012

Production of Yaris Hybrid N/A EUR 25

Nissan Europe S.A.S.

Cacia,Portugal 2012

Construction of battery plant EUR 156

EUR 210

200

200Nissan Motor Manufacturing (UK) Ltd.

Sunderland,U.K

2012 Construction of battery plant

N/AN/ANissan Motor Manufacturing (UK) Ltd.

Sunderland,U.K

2013 Production of Leaf

Nissan Motor Manufacturing (UK) Ltd.

Sunderland,U.K

Production of and R&D activities for Qashqai GBP 192N/AN/A

Mazda Motor's European R&D centre in Oberursel, Germany

Japanese Automakers’ Purchases of EU Parts

Purchases of European parts by Japanese automakers totalled €10.96 billion in 2010.

At the European production facilities of Japanese automakers, European suppliers deliver more than 80% of the value of the parts.

European suppliers with high outsourcing and looking for a long-term relationship are potentially excellent partners for Japanese automakers.

JAMA members open their contact points to potential suppliers in order to pursue global maximised purchasing.

(billion €)

No

te: F

Y 2

001-

2004

: EU

15;

FY

200

5-20

06: E

U25

; FY

200

7-20

10: E

U27

0

1

2

3

5

4

6

7

8

9

10

11

12

13

14

7.53

7.93

9.51

10.2

1

11.2

4

13.1

9

2001 2002 2003 2004 2005 2006 2007 2008

15

16

Source:JAMA

15.1

2

2009

13.5

4

2010

9.73

10.9

6

Employees at the Honda of the UK Manufacturing Ltd. (HUM) plant, Swindon, UK

Automotive Ties between Europe and Japanp pA

10 11

Japanese Auto Manufacturers Contribute to the Competitiveness of Europe’s Motor IndustryCommon Challenges, Common Future

As of September 2011

Supply of diesel engines

Supply of finished vehicles jointly developed in the EU

Supply of finished vehicles jointly developed in the EU

　15% equity stake

　44.3% equity stake

100% equity stake

1.55% equity stake

3.1% equity stake

E U Japan

Subaru

Porsche(Germany)

Supply of fini

Fiat(Italy)

Mitsubishi FusoUD Trucks

Toyota Peugeot CitroënAutomobile Czech(Czech Republic)

AB Volvo(Sweden)

Volkswagen(Germany)

PSA Peugeot Citroën (France)

Toyota

Cooperative sales ties in the Japanese market

Supply of engines

50% equity stake

GM Europe

Supply o

Mitsubishi

y stake

y

Nissan

gines

Daimler(Germany)

Supply of diesel engines Supply of diesel engines Supply of diesel engines

15% eq

Renault(France)

Supply of Supply of diesel engines diesel engines

Supply of diesel engines

Supply of Supply of finished vehiclesfinished vehiclesSupply of finished vehicles

Isuzu

News from Our Members

HondaUK Prime Minister David Cameron visited Honda's Swindon manufacturing

plant in February 2011, touring the factory and dialoguing with Honda

associates. The visit of the prime minister, who owns a CR-V, underscored the

important role of Honda's Swindon plant in the local economy.

ToyotaToyota marked cumulative sales of 20 million vehicles in Europe in November

2010, and is contributing to the sustainable development of society through the

manufacturing and provision of innovative and high-quality products and

services. Following the start of production of Auris HSD (first full hybrid vehicle

in Europe) in the UK in 2010, Yaris HV will be manufactured in France from

mid-2012, and Toyota is planning to introduce about 10 new hybrid models by

2015 globally. Also, Toyota aims to begin sales of a "Prius"-based PHV, mainly

in Japan, the United States and Europe, which can be driven as an electric

vehicle for short distances, and works as a conventional hybrid vehicle for

longer distances.

MitsubishiMMC has announced the results of the safety test conducted on the

next-generation electric i-MiEV (European specs) by the European New Car

Assessment Programme (the latter's first-ever crash test on a mass-produced

EV)—namely, in the event of an impact, zero damage to the high-capacity drive

battery and the complete shutdown of the high-voltage electrical system, to

protect the passengers and rescue personnel. The i-MiEV received an overall

four-star rating (2011 standards), with German ADAC testing and Australia's

ANCAP producing similar results, reconfirming the car's excellent safety

performance.

MazdaThe all-new Mazda CX-5 advances Mazda's hallmark fun-to-drive character

and will be progressively introduced to global markets from early 2012.

Developed around the full range of SKYACTIV technology – including all-new

Mazda gasoline and diesel engines, manual and automatic transmissions,

bodies and chassis – the CX-5 delivers precise response and a high-quality

ride matched with outstanding environmental and safety performance. Mazda

focused on achieving exceptional environmental performance for a compact

SUV, targeting CO2 emissions of less than 120g/km for the SKYACTIV-D 2.2

engine model.

NissanIn 2011 Nissan's 100%-electric Leaf, the world's first mass-marketed,

affordable, zero-emissions vehicle for global distribution, triumphed over 40

contenders in being designated European Car of the Year, motoring's most

important accolade—the first time in the annual competition's 47-year history

that the award went to an EV. In Europe, deliveries started in early 2011 to

Portugal, Ireland, the UK and the Netherlands. Currently being built in Japan,

the Leaf will also be produced in North America and Europe when new

manufacturing facilities open in late 2012 and early 2013.

Honda

Mazda

Mitsubishi

Nissan

Toyota

longer distances.

Cross-shareholdingCross-shareholding

d vehicles

Suzuki

Supply of diesel Supply of diesel engine spare partsengine spare parts Supply of diesel

engine spare partsCross-shareholding

Supply of diesel engines Supply of diesel engines Supply of diesel engines

Supply of diesel engine spare parts

3.1% equity stake3.1% equity stake3.1% equity stake

1.55% equity stake1.55% equity stake1.55% equity stake

50% equity stake50% equity stake50% equity stake

85% equity stake85% equity stake85% equity stake