JARA NEWSfrom
Japan Automotive Recyclers Alliancewww.jara.co.jp

JARA announces business
policy for FY2017

April 2017, No. 110

Published by JARA Corporation
Tokyo Head Office: Shinawa Bldg. 1-2-2-7F,
Nihonbashi, Chuo-ku, Tokyo JAPAN 103-0027
Phone: +81 3 3548 3010 / Fax: +81 3 3231 4690

The 3rd JARA Group General Meeting

JARA Academy

System Department are to serve Production
Information. In addition, the Next-Generation
Society was established to help foster humanresources in younger management and candidates.
Regular meetings of the Block Dept. will beheld based on sales performance, not on thepreviously held regional basis. As companies ofsimilar scales seem to have common issues, thedepartment will help them share such issues
among cross-regional companies, thereby heading
towards improvement and growth.
The Educational Dept. will focus on
improving technical skills in addition to the skills
provided in its existing training courses. It will
also work together with external training
institutes to foster human resources who are able
to support customers.
Besides sustaining the existing campaign for
nationwide workplace clean-up, the GeneralAffairs Dept. will support the expansion of thesales of recycled auto parts and strengthen its
educational activities.
The Quality Management and System Dept.
will promote commercialization by utilizing scan-tools. It will also host some workshops to help
recyclers maximize the added -vales of theirrecycled parts.
Kensaku Takahashi, president of Takahashi
Shoukai Co., has filled the post of Chairman of
the Next-Generation Society. He aims to build anationwide network of second- and third-generation presidents of recycling companies,
thereby broadening the knowledge of allcompanies involved. The society will host anationwide joint meeting, which will be held in
November of this year.

budget plans for FY2017. At the beginning of theannual event, Chairman Imai delivered hismessage:“Last fiscal year we were able to see a yearlygain thanks to our various efforts such as system
improvement. However, times are becoming
harder. Nevertheless, this year I am still runningto striving to our customers and then we willsurvive.” (Daily Automotive News, March 16
issue)• aiming for an increase in parts
distribution• setting up next-generation society
JARA (Japan Automotive Recyclers Alliance)
Group agreed to post its basic business policy forfiscal year 2017 as “Parts Distribution
Expansion.” By maintaining the distribution
inside the group, it will also go outside to seek anincrease in the sales of the entire parts lineup,
including rebuilt -parts and recommended parts( s o - c a l l e d “ Yu r y o B u h i n ” ) b y t h e J a p a n
Automotive Products Association. Automotive
recycling businesses are facing hard times due tothe declining number of end-of-life-vehicles(ELVs) and other negative factors.
The Group announced its plans at the 3rd
JARA Group General Meeting held on March 10,with its slogan of “Plus One Challenge.” Group
Chairman Yuji Imai stressed: “this is our messageto people in our field of work: you should visit
customers every day, as many as possible. You
should cut unnecessary steps in the factory. With
these small actions, the company jointly with its
owner might be able to see growth.”
For FY2017, five departments will take part inexpanding parts distribution. The Block
Department is charged with operating regularmeetings, while the Educational Department isdedicated to human resources development. TheGeneral Affairs Department is engaged in
information provision, while the Quality
Management Department and the newly created

CO2 Reduction Effect(based on JARA System)

The use of Reuse Parts saved

2,885 tons of CO2 emissions
in February 2017
The reference figure represents the difference of carbon
dioxide (CO2) emissions at the vehicle repair using
genuine (new) parts and recycled parts.**: Based on "Green Point System", which was jointly
developed by the Japan Automotive Parts Recyclers
Association and Waseda University Environmental
Research Institute using a life cycle assessment (LCA)technique.

• FY2016 report and budgets for FY2017
approved
On March 9, JARA Group held its 3rd JARA
Group General Meeting at a hotel in Tokyo. A
total of 59 member companies of the 75
registered members attended the meeting and they
approved the business report of FY2016 and theJARA Academy held
JARA Corporation recently held its JARA
Academy, which focused on managements. In
order to cultivate enough strength to makeinvestments by predicting future trends, theacademy provided a platform for discussing how
to resolve ‘participants’ issues. Lecturers wereinvited to provide their experiences, know-how
and their visions for the current situations.
JARA Corporation President Sosho Kitajima
delivered his message:“As you already know, we need various
strategies to survive in the future, but there is aquestion. Will we need such strategies only forfactory management and automotive recycling
businesses? How far will our recycling businesses
go? From now on, you should prepare your plans
after listening to the outspoken opinions andinformation presented by the lecturers.”
A total of six Academy sessions will bearranged this year. At the first session, Satoshi
Takahashi, former president of Takahashi ShoukaiCo., gave a lecture titled “Yearly Plans forInvestment in Facility and Equipment.” He spoke
about “how to improve operational efficiency andhow to create systems for improved productivity:
it is important to think well to get to the nextstep.” The next session is scheduled to be held inMarch. Seats will be available for participantsfrom managements and candidates as well as
those who are willing to join regardless of theirtitles. (Daily Automotive News, March 2 issue)

JARA NEWS No. 110 April 2017 Page 2
Sales results and target for next-generation vehicles
METI
Conventional vehicles
Next-generation vehicles
Hybrid vehicles
Electric Vehicles
Plug-in hybrids
Fuel cell vehicles
Clean diesel vehicles

Year 201665.15%
34.85%
30.76%
0.37%
0.22%
0.02%
3.46%

2030
30-50%
50-70%
30-40%
20-30%
3%
5-10%

Sales target of hybrid vehicls achieved
ahead of government schedule for 2030
Target sales of hybrid passenger cars inJapan have been achieved ahead of the schedulethat the government set for 2030. Although
the Ministry of Economy, Trade and Industry
set a goal for hybrid car sales of more than 30percent against total car sales by 2030, actual
sales of such cars accounted for 30.76 percent
of total sales in 2016. On the other hand,targets for electric vehicles (EVs) and plugin hybrid vehicles (PHVs) accounted for lessthan one percent, respectively. The ministry
aims to increase the sales of EVs and OHVs bylaunching a new subsidy program.
In 2016, the market share of hybrid cars
increased from the previous year’s 22.2 percentby 8 percentage points. Strong sales of theToyota Prius, which was fully remodeled at theend of 2015, the hybrid version of the Honda
Fit, and the Nissan Note contributed to theyearly gain. Although the market shares of“clean diesel” cars slightly declined from theprevious year’s 3.60 percent to 3.46 percent
in 2016, the government decided to extend its
tax exemption program for eco-friendly cars tomeet the goal of 5 percent of the share by 2030.
There are issues for the diffusion of EVsand PHVs. Although the cruising range of theNissan Leaf EV extends to 280 kilometers
per single battery charge, it shortens in thewinter season. As for PHVs, which are often
introduced from imported brands, consumers are
not familiar with the driving feature. However,Toyota pushes the new Prius PHV as the“favorite” in the eco-friendly vehicle sales race
towards the future. The company’s chairman
Takeshi Uchiyamada unveiled plans to expand
PHV versions to a wider range of Toyota model
lineups.
In order to encourage sales of EVs andPHVs, METI is planning to revise its subsidy
program in May, thereby installing more battery

Sharing each group's thoughts might lead to solutions forindustrial issues

chargers, even in locations like apartmentbuildings. It will also provide a leaflet titled“PHV battery charging in workplaces.” (Daily
Automotive News, March 15 issue)

The 3rd report of the Auto
Recycling Summit / Daily
Automotive NewsGroups seeking toovercome diffuculties
The business environment of the auto
recycling industry is becoming increasingly
severe due to the declining number of ELVs,
high purchasing costs, steel scrap price fall, andtransport cost hikes. How does each recyclergroup work with these difficulties? Voicesfrom group leaders might leave strong feelings
toward business continuity and expansion.
NGP Group’s President Yukio Sato hinted
at the economy of scale, by saying: “Jointly
shipping containers overseas is a good example.
In our region, member recyclers jointly export
parts overseas using common containers.” The
group is also planning to build a joint system
to collect steel scraps and other materials.
Chiyoshi Tsubo, Chairman of the East Japan
Automobile Dismantling Union said, “We areasking wholesalers to purchase our materials
based on the same unit price regardless of theunit volume per trade.”
Hideyuki Doi, President of System AutoParts, eyes a potential increase in the import
brand vehicles, saying: “we did not take thatfield on because we are not good at handlingsuch vehicles. From now on, we will share
the necessary information to support salesincreases.”
Some groups focus on human resources
development. Atsushi Hattori, President of Big
Wave Inc. said: “it will be important for us toraise the satisfaction levels of employees inaddition to customers. We will provide a system
in which employees work happily.” Tsuyoshi
Ishigami, President of Total Car Recycle Groupsaid, “our group is always pursuing a group
identity and actively promoting personnel
exchange jointly through cooperation with othergroups.” Japan Parts Association’s President
Ichiji Hayamkawa stressed: “we must make ourrecycling industry attractive by strengthening
educational training so that capable personnel
do not move to other fields.”
Total Ecology Car Life Service Network is
promoting system utilization for increasing parts
sales. President Masayuki Harigaya advised
companies to, “not rely on a single network.
We are actively involved in cooperation withonline auctions.” Shojiro Hatomura, Presidentof Buyukai Corporation and Sosho Kitajima,President of JARA Corporation pointed out thenecessity of operational improvement. “Youneed to review every day operations in front ofyou,” said Hatomura. “It’s important to reduce
operation steps. We are involved in improving
today’s operations by using automated systems
and visualization methods,” said Kitajima.
Automotive Recyclers Network focuses oncost reduction. President Takanori Okada said,“until now, we made packaging and shipping by
ourselves for external new parts. Now, we let
the transport company do such works.”
SSG is eyeing the next-generation
vehicles. President Hiroshi Kudo said, “weare considering the creation of methods forparts checking and distribution for the nextgeneration vehicles such as electric and fuelcell vehicles.” Masaki Miyamoto, Presidentof Japan Truck Refine Parts Association said:“there are four categories of truck parts:
genuine, recommended, rebuilt and used. We
need to make the logistics industry aware of theused parts.”
Japan Automotive Parts Recyclers
Association is seeking ties with other groups.
Chairman Hiroyuki Kurihara said, “we will
work hand-in-hand with the Japan ELV
Recyclers Association (JAERA).” Yasuo
Sakai, JAERA Chairman, pointed out, “fromour viewpoint as a government relations desk,things will not go forward if talks are done only
inside the industry. It is necessary for us to send
messages about how to tackle auto recycling on
a wider scope, including carmakers and partsand materials businesses.”
Meanwhile, Norihiko Kondo, President ofReUse Motorization Alliance, emphasized thenecessity for reforming the current mindset.
“You don’t blame the bad market. There’s a
new direction if you change the focus towards
resolving environmental problems.” (Daily
Automotive News, Feb. 26 issue)

JARA NEWS No. 110 April 2017 Page 3

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