08th
Anniversary

Legacy of the Past,
Vision of the Future

On Publishing the 80-year History
Legacy of the Past, Vision of the Future
In April 2018, Musashi Seimitsu Industry marked its 80th year in business.
We are publishing the 80-year history, Legacy of the Past, Vision of the
Future, as part of the events to mark this milestone, and I would like to sharein the joy of this achievement with all the employees of the Musashi Group.
I would also like to express my deep appreciation to all of our predecessors,
our customers, our business partners, and our shareholders who have built

the so-called Fourth Industrial Revolution. In the automotive industry,technological advances have enabled the rise of electric vehicles and selfdriving cars, and we have seen car-sharing services take off as well as
connected cars, which dramatically increase driver convenience with Internet
connectivity. Changes that will redefine the value of cars are now underway.
Without ongoing innovation, growth cannot be expected in the coming

Musashi Seimitsu Industry’s business foundation over this long history.
Musashi Seimitsu Industry started out 80 years ago as

years. But with the great changes come great opportunity. And most of all,taking on bold challenges without fear of failure leads to great achievements,

Otsuka Kikai Seisakusho (Otsuka Machinery Plant) in the Togoshi
neighborhood of Shinagawa-ku, Tokyo, in April 1938. We have now growninto a corporate group spanning 14 countries with more than 16,000
employees. Looking back over our history, we first began as a plant producing

as evidenced throughout the history of Musashi Seimitsu Industry. Now is thetime for us to go back to our roots, and with the spirit of “Simple and Sturdy”
and “Consistent Sincerity,” carry on the legacy of Musashi Seimitsu Industry
and carry out our vision of the future.

aircraft components. After WWII, we shifted to the sewing machine industry
and then to the automotive industry. The history of Musashi Seimitsu Industry

I would like to again express my gratitude to everyone who has been apart of our last 80 years and ask for your continued support and guidanceis marked by decisive moves and determination in the face of challenges
brought about by a series of turbulent changes in the wider society.
And today, we find ourselves in the midst of a new period of great change,in the years ahead. Please enjoy this 80-year history of Musashi Seimitsu
Industry.

President & CEO

Hiroshi Otsuka

80-Year History of Musashi

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80-Year History of Musashi

Origin of the Title “Legacy of the Past, Vision of the Future”

CONTENTS

Behind President Hiroshi Otsuka’s desk is a large framed calligraphy work of the phrase “Legacy of

On Publishing the 80-year History

the Past, Vision of the Future.”

Legacy of the Past, Vision of the Future ……………………………2“Legacy of the Past, Vision of the Future” means carrying on the work of one’s predecessors
and creating the future while continuing to develop. It is an expression coined by the Chinese

Origin of the Title “Legacy of the Past, Vision of the Future”…4

philosopher Zhu Xi, the founder of the neo-Confucian school of thought.

80 Years of Musashi Seimitsu Industry in Pictures ……………6

The calligraphy work was a gift from Yang Xiaoyang when he was a corporate officer at MAPCH (current adviser to MAP-CH and MIZ). He thought about what would be an appropriate gift
to give upon Mr. Osuka’s appointment to President and decided on this phrase, which spoke to

80 Years of History: 1938–2017

Musashi Seimitsu’s future, and asked a calligrapher to make the calligraphy.

Part 1 Foundation 1938–1945 ……………………………………10

When President Otsuka saw the calligraphy at the Head Office in April 2007, he nodded inagreement and gladly accepted the gift as a symbol of his mission. Mr. Yang took this as a sign that

Part 2President Otsuka understood the meaning of the phrase. This is because there was also a deeper

Part 3 Turning Point 1956–1960 …………………………………20

meaning to his gift of this phrase.

Reconstruction 1946–1955…………………………………14

Part 4Growth 1961–1975 …………………………………………28

Kyushu Musashi Seimitsu and accompanied President Kimitoshi, Musashi Seimitsu’s second

Part 5

Expansion 1976–1989 ………………………………………42president, to Chengdu, China. There they visited the Wuhou Memorial Temple dedicated toPart 6 Global Expansion 1990–2005 ……………………………56

It was something that happened in July 1995. At the time, Mr. Yang was working at

Zhuge Liang in their free time. They briefly paid their respects at the grave of Zhuge Liang in the
Chinese custom and continued along the route. After walking some 200 meters, President Kimitoshi

Part 7

Innovation 2006–2017 ………………………………………72

suddenly stopped.
He said to Mr. Yang, “I must go and pray properly at his grave.”
So they returned to Zhuge Liang’s grave and prayed in the formal custom. On the way back2018–

from the temple, President Kimitoshi said, “Even great rulers like Liu Bei and Zhuge Liang couldPart 8not maintain their legacy for a third generation. It’s not easy to successfully sustain corporate

Part 9 Musashi Spreading Around the World …………………124

management for a long time either.”To the Future …………………………………………………106

This left a deep impression on Mr. Yang, who then gave the calligraphy of “Legacy of the Past,
Vision of the Future,” which encapsulated this feeling, to Musashi Seimitsu’s fourth president,
Hiroshi Otsuka.

Musashi Group Data ……………………………………………………159
List of Directors & Officers ………………………………………160
Sales ……………………………………………………………………164
No. of Employees ……………………………………………………165
Main Products Produced …………………………………………166
Commendations from Customers ………………………………168
New Orders ……………………………………………………………173
History ………………………………………………………………176
Where Musashi Was Founded …………………………………192

Standing in front of a statue of Zhuge Liang

80-Year History of Musashi

At Wuhou Memorial Temple

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80-Year History of Musashi

Timeline

80 Years of Musashi Seimitsu Industry in Pictures
September 1956
Begin sales to Honda Motor Co., Ltd.

Otsuka Seisakusho (Musashino City)
Honda Motor Hamamatsu Plant

October 1946
Relocate head office to Osaki-cho,
Toyohashi City, Aichi Prefecture
Change name to Musashi Sangyo.

Newly erected company sign“Musashi(
Sangyo Co., Ltd.”)

1957
Obtain Mitsui jig borers from
Toyokawa Naval Arsenal

Employees in front of Otsuka Seisakusho
at time of its founding

Ueta Plant (1967)

April 1938
E s ta b l i s h Ot su ka K i ka i S e i sa ku sh o
(Otsuka Machinery Plant) in Togoshi,
Shinagawa-ku, Tokyo
April 1939
Relocate plant to Musashino Town,
Kitatama District, Tokyo, and change
company name to Otsuka Seisakusho

Foundation
1938-1945

September 1963
Change company name to Musashi Seimitsu Industry Co., Ltd.
January 1965
Ueta Plant begins operations
June 1965
Complete Suzuka Plant

Acquisition of jig borers
improves precision of
manufactured products

Osaki Plant in 1963

➡ p. 10End of the aviation industry

Reconstruction➡ p. 14
1946-1955

Decline of the sewing machine industry
1955
Account for 65%
of the thread takeup cam market inJapan

Horai Plant

October 1969
Complete Horai Plant
February 1970
Successfully develop industrial
robots1971
Successfully forge bevel gears

Suzuka Plant

Turning Point➡ p. 20
1956-1960

Growth1961-1975

Trade liberalization (cost competition)

Oil crises
April 1967
Begin manufacturing ball joints andengine parts for the Honda N series
1968
Successfully develop compact,
lightweight oil-free ball joints

1958
President Soichiro Honda
of Honda Motor Co.,
Ltd. visits Musashi
SangyoApril 1947
Begin manufacturing
sewing machine parts
January 1949
Begin manufacturing
thread take-up cams
1951
Begin sales of sewing
machine parts

Employees gathered for dissolution meetingat Kaminoyama

January 1944
Change company name to
Otsuka Koku Kogyo(Otsuka Aviation Industry).
February 1945
Evacuate to Shinjo City,
Yamagata Prefecture
September 1945
Dissolve Otsuka Aviation Industry.

➡ p. 28

Soichiro Honda (left) and Yoshiharu Otsuka
enjoying a conversation

Initially developed oil-free ball joints

August 1973
Complete Utsunomiya
Plant
December 1974
Establish Kyushu Musashi
Seimitsu Co., Ltd.

Thread take-up cams and sideview of sewing machine
Thread take-up cam
Honda Dream E-Type

80-Year History of Musashi-6-

Kyushu Musashi Seimitsu Co., Ltd.

Utsunomiya Plant-7-

80-Year History of Musashi

Timeline

80 Years of Musashi Seimitsu Industry in Pictures
December 2006
Construct new #2 plant at MAP-IN in
Karawang, Indonesia

August 1982
Complete Akemi Plant

Noto Plant

MAP-UK

MAP-TH ♯ 2

MSB

MAP-IN ♯ 1

MAP-CA

March 1991
Complete Noto Plant
July 1993
Establish Musashi Auto Parts UK (MAP-UK) in South Wales, UK
March 1996

Completion ceremony for Akemi Plant #1

December 1987
Establish Musashi Auto Parts(MAP) in Pathumthani, Thailand

Establish Musashi Auto Parts Indonesia (MAP-IN) in Bekasi, Indonesia

April 1996
Construct #2 plant at MAP-TH in Prachinburi, Thailand
May 1997

MAP-IN ♯2

November 2010
Establish Musashi Auto Parts Vietnam(MAP-VN) in Hung Yen Province, Vietnam
December 2011
Establish Musashi India (MID) as a sales
and purchasing office in Haryana, India
March 2012
Establish Musashi Auto Parts Mexico(MAP-MX) in San Luis Potosi, Mexico

MAP-VN

April 2012
Establish the Musashi global
brand slogan “Power to Value”

Capital participation in Musashi do Brasil (MSB) in Pernambuco, Brazil

June 1997
Establish Musashi Auto Parts Canada (MAP-CA) in Ontario, CanadaGroup photo at opening ceremony for
Musashi Auto Parts Co., Ltd. (April 28, 1989)

Expansion
1976-1989➡ p. 42

Global Expansion➡ p. 56
1990-2005

Bursting of Japan’s economic bubble

October 2017Conclude comprehensive
exchange agreement with
Toyohashi University ofTechnology
December 2017
Hold opening ceremony
for the Machinery & Tools
Business Unit

Innovation
2006-2017
Global financial crisis

MAP-MX➡ p. 72

Various disasters

Machinery & Tools Business Unit

To the Future

2018-➡ p. 106

Fourth Industrial Revolution(EVs, self-driving cars, car sharing, connectivity)

July 1978Conclude agreement with Ford Motor
to export ball joints
August 1980
Establish Musashi Auto Parts Michigan
Inc. (MAP-MI) in Michigan, USA

Establish Musashi Hungary
Manufacturing (MHM) in Ercsi, Hungary

MAP-ID
January 2001
Establish Musashi North America
Inc. (MNA) in Michigan, USA
January 2001

MAP-MI

Establish Musashi Europe (MEU) on
the outskirts of Munich, Germany

March 2002
MAP-CH
Establish Musashi da Amazonia(MDA) in Amazonas, Brazil
July 2002
Establish Musashi Auto Parts
India (MAPID) in Haryana, India
January 2003
Establish Musashi Auto Parts Akemi Plant #2(Zhongshan) (MAP-CH) in
Guangdong, China
December 2003
Establish Musashi Asia (MAS) in Bangkok, Thailand
December 2005
Establish Akemi Plant #2 in Toyohashi City,
Aichi Prefecture, Japan

MSC

Visit to Ford Motor Company (May 28, 1986)

MHM

Musashi USA Inc.
(currently Musashi Auto Parts Michigan Inc.)

80-Year History of Musashi

June 2013
Construct new #2 plant at MAP-ID in Karnataka, India
June 2014
Establish Musashi Auto Parts (Nantong) (MAP-NT) in
Jiangsu, China
October 2014
Establish Musashi Seimitsu Investment (Zhongshan) (MIZ)
as a regional headquarters in Guangdong, China
MAP-ID ♯2June 2016
Acquire all shares of Hay Holding GmbH in Germany
June 2018
Integrate Hay Group with MEU

October 1999
Establish Musashi South Carolina(MSC) in South Carolina, USA
February 2000

MDA

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November 2007
Establish the Musashi Global Vision 2020
September 2008
Construct new Musashi Global Center on the Head Officegrounds
October 2008
Enter into an agreement with the motorcycle racing team
HARC-PRO. to be a main sponsor

Musashi Global Center

MAP-NT

MEU

Next-generation riders-9-80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

To the Future

2018‒Part 1 Foundation
With the eruption of the Russo–Japanese War in 1904, Japan
was thrust into chaotic and turbulent times. World War I started
in 1914, and with it Japan marched into China.
The Great Kanto Earthquake, which struck in 1923, resulted
in more than 100,000 people killed or declared missing andleft the Tokyo metropolitan region paralyzed. In 1941, Japan’s
attack on Pearl Harbor launched the United States and Japan
into World War II. Japan ultimately lost the war and had torebuild from burned fields and rubble.
Yoshiharu Otsuka, the founder of Musashi, was bornin 1905, the year after the start of the Russo–Japanese
War. He skillfully navigated the tumultuous changes of thetimes with his signature drive and foresight to establish
Otsuka Kikai Seisakusho (Otsuka Machinery Plant) in April
1938.

80-Year History of Musashi- 10 -

- 11 -(Photo courtesy of: Mainichi Newspapers/Aflo)Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960■ 1938 / Establish Otsuka Kikai Seisakusho■ 1945 / Company dissolution

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

To the Future

2018‒Part 1 Foundation 1938–1945■ 1944 / Change company name to Otsuka Aviation Industry.

Origins of Musashi

Prologue Early life of founder Yoshiharu Otsuka
Founder Yoshiharu Otsuka was born on February 23, 1905,
during the Russo–Japanese War. He was born the sixth sonof a farming family from Takashi Village, Atsumi District, Aichi
Prefecture (present-day Osaki-cho).
In 1919 at the age of 14, he went to Tokyo to apprenticeat Osaki Kikai Seisakusho. He experienced many challenges,
including having to return home after falling seriously ill, but heovercame them to become a full-fledged plant worker.
The company he worked for later went bankrupt due tothe impacts of the Great Kanto Earthquake and economic
recession, but he was hired by Kato Works Co., Ltd. as anexperienced and skilled worker. While he was working, he also
attended night school at Eishin Gakuin, where he acquired

more advanced skills and knowledge. As Japan entered
the Showa Era (1926–1989), Yoshiharu predicted the ageof flight. He resigned from Kato Works Co., Ltd. and joined
Nakajima Aircraft Company. He distinguished himself on the
job and was promoted to general manager of the worksite witha staff of 150.
Nakajima Aircraft Company was growing rapidly as
the drumbeat of war approached, but Yoshiharu suddenly
submitted his resignation. The times were reaching a turning
point. After considering how he should adapt to the comingchanges, he decided to use his skills and experience to starthis own company.

Sketch of Otsuka Aviation Industry from 1944
The company emblem at the time is in the upper
rightFounding of Otsuka Kikai Seisakusho

Sketch of Otsuka Kikai Seisakusho from 1938

The original site of Otsuka Seisakusho in Togoshi,
Shinagawa-ku, Tokyo, in 2018

In April 1938, Otsuka Kikai Seisakusho was established in Togoshi,
Shinagawa-ku, Tokyo Prefecture. Otsuka Kikai Seisakusho had capital of
45,000 yen and five employees: four new graduates hired in Toyohashi Cityand one local hire.
He had three milling machines, one lathe of 1.8 meters, and two drillpresses as well as smaller tools and instruments. His first work order wasfrom Ishiwatari Seisakusho, which had been rebuilt by President Ishiwatari of
the former Osaki Seisakusho. The job was machining the housing of aircraft
propeller bearings.
The workspace became too small as work orders increased, and the next
year in April 1939, he built a new plant and relocated his company along
Itsukaichi Kaido road in Sekimae, Musashino City, 1.5 kilometers from theMusashino plant of Nakajima Aircraft Company. He changed the name of his
company to Otsuka Seisakusho and increased his employees to 15 or so.
Nakajima Aircraft Company had just built a large plant around this time able tomass-produce engines and aircraft components, and Yoshiharu believed thatlarge orders for work would follow.
When the plant was completed, Yoshiharu visited the materials and parts
division of Nakajima Aircraft Company. Nakajima had been having problems
with the shaft for the aircraft carburetor that regulated air intake and asked
Yoshiharu if he wanted to compete with its long-standing supplier on parts
quality.
Musashi investigated the cause of the problem and innovated themachining process, resulting in it successfully capturing the work order. This
opportunity opened the door to receiving an order for heat exchangers.
This order greatly increased Otsuka Seisakusho’s work volume, andthe finishing shop was expanded by about 132 square meters in 1940. The
company added two plant shops in 1942 and three plant shops the following
year. Otsuka Seisakusho’s total footprint now reached more than 1,100 square
meters. Musashi was also committed to quality management and inspected
deliverables from an early stage. Every preventive measure was taken so that

Employees at time of establishment (Otsuka Seisakusho)

defective returns would not arise.
At the same time, with the understanding that enhancing employee
awareness and motivation for work were important, Musashi established ayouth school for young employees. Youths who had been hired en masse
were given the opportunity to get a general education and learn societal
basics. Musashi also focused on employee welfare and benefits, for example,
by building a dining hall, a dormitory for unmarried employees, and a large
sports field as well as taking employees on company trips.

The former location of Otsuka Aviation Industry as
it looks in 2018 (3-3 Yahata, Musashino City)

Column ❶ Memories of the FounderFounding member (Interview with
Tatsuo Ishiguro [deceased], February 18, 2016)

Company dissolution at the end of World War II
The Japanese aircraft industry achieved great development from the need toenhance Japan’s military might. As demand from Nakajima Aircraft Company
grew, so did the bottom line at Musashi. In January 1944, the company was
renamed and reorganized as Otsuka Aviation Industry and increased its
capital to 250,000 yen.
The war, however, was not going in Japan’s favor. Aerial bombing of
Nakajima Aircraft Company’s Musashino plant started on November 24 ofthat year. Musashi hastily decided to relocate its plant to the Tohoku region.
On February 23, 1945, the company evacuated to Shinjo in Yamagata
Prefecture. In June, it also built a plant in the Kaminoyama Onsen area some
80 kilometers away from Shinjo.
On August 15, Yoshiharu heard about the end of the war while on a
train headed for Kaminoyama Station. He immediately gathered all of theemployees at the Kaminoyama plant, held a meeting to dissolve the company,and gave them severance pay and travel money.

When the company was founded, the plant hada coal-burning stove. Yoshiharu Otsuka was incharge of running the lathe, and Tatsuo Ishiguro
was in charge of running the milling machine andthe drill press. The second president Kimitoshi
Otsuka used to get a ride to elementary school on
Tatsuo Ishiguro’s bicycle. He would wait for him toarrive on his bicycle and then jump on the back,begging him to pedal fast.
Tatsuo Ishiguro practiced judo at the Kodokan
Judo Institute and was a fifth-degree black belt.
Yoshiharu also often practiced judo in a tatamimat room in Togoshi. Yoshiharu was said to be
the stronger of the two at the time. Yoshiharu,
Mr. Fujimura (a founding member), and Tatsuo.
Ishiguro would go buy imagawayaki (grilled buns
filled with sweet bean paste) and eat them.
At an event celebrating Musashi’s 70th
anniversary, Tatsuo Ishiguro showed us thelocation where the company was founded in the
Togoshi neighborhood of Shinagawa-ku, Tokyo.
The neighborhood had changed a great deal andit was difficult to identify the plant’s location, but
thanks to Tatsuo Ishiguro, who had been there at
the time, we were able to get a vivid image of what
it was like at the company’s founding.

Inside the plant

80-Year History of Musashi- 12 -- 13 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

To the Future

2018‒Part 2 Reconstruction
With the end of World War II on August 15, 1945, Japan started theprocess of rebuilding its economy and country from the burnedout ruins and rubble.
During the 10 years after the end of WWII called the postwar reconstruction period, Japan carried out economic
democratization policies to dismantle the zaibatsu
conglomerates, implement agricultural land reforms, anddemocratize labor. In addition, the Japanese government
promoted exports and focused on products like textiles andsteel to alleviate the trade deficit stemming from food and otherimports and to obtain foreign currency.
The sewing machine industry grew quickly after the war
due to the shortage of clothing. In addition to production fordomestic consumption, overseas exports gradually increasedon the strength of the low-priced, high-quality products.
Musashi decided to use its expertise in machining technology
to enter the sewing machine industry.

80-Year History of Musashi- 14 -

- 15 -(Photo courtesy of: Mainichi Newspapers/Aflo)Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989■ 1946 / Change name to Musashi Sangyo Co., Ltd.

Global expansion Innovation

1990‒20052006­­‒2017

To the Future

2018‒Part 2 Reconstruction 1946–1955■ 1947 / Begin manufacturing sewing machine parts

Entered the Sewing Machine Industry

Returning home to Toyohashi
and rebuilding the company

New company sign erected at Osaki-cho in
Toyohashi City, Aichi Prefecture

After dissolving the company, founder Yoshiharu Otsuka went back to hishometown of Toyohashi City. He purchased a plot of reclaimed farming land of
approximately 12,000 square meters with the intention of creating a large farm.
The land was, however, not suitable for cultivation and the reclamation work
was exceedingly difficult. Worried over the future, he decided to reconstruct
his company after employees who had lost their jobs entreated him to take up
machine work again.
In October 1946, he restarted his company, renaming it Musashi Sangyo
from the association with the Musashino area where the company had
formerly been located.
At first there was no real work. He put out a sign offering to build and repair
farm equipment, and took on work repairing fishing boat engines and farming
equipment from nearby areas. His shop was more like a local blacksmith thana family-run plant shop.
At the time, Musashi did not have any employees with sales experience,
and Yoshiharu went out himself looking for work anywhere he could find it.
While he was going around the country to drum up sales, he heard about theburgeoning sewing machine industry.
Post-war Japan was suffering from a severe shortage of clothing in
addition to food, and sewing machines to make clothes were also in short
supply. The Japanese government was promoting the sewing machineindustry as one avenue of economic transformation from defense to peacetime
industries and as a way to acquire foreign currency.
At the end of 1946, in addition to Brother and Teikoku Mishin (Janome),
which had been around since before WWII, more than 50 other companies
jumped into the sewing machine manufacturing industry. These included
Japan Steel Works’ Utsunomiya Plant (Pine), Nakajima Hikoki K.K.’s
Hamamatsu Plant (Rhythm), and Tokyo Juki Industrial Co., Ltd. (Juki).

Identifying the needs of local sewing machinecompanies and getting orders
After the war, the Hamamatsu Plant of Nakajima Hikoki K.K. began producing
sewing machines as the Fuji Sangyo Hamamatsu Plant (later becoming
Fuji Seimitsu Industry). Yoshiharu found out that a friend of his from the former
Nakajima Hikoki K.K. was working there as an engineering manager and went
to see him.
At the time, the Hamamatsu Plant of Fuji Sangyo was going to Osaka to
buy sewing machine parts such as thread take-up cams, needle bar brackets,and feed dogs. There were no suppliers nearby they could subcontract theparts manufacturing to, and Yoshiharu was told that they would give him thework if he could do it.
Musashi was then contracted to manufacture needle bar thread brackets,
feed dogs, motion push, arm shaft bushings, and large screws. It had one
company it sold parts to and a monthly production volume of just 3,000 parts,
but this was its first step into the sewing machine industry.

Product information with a map ofMusashi Sangyo's location

The company name was changed to Musashi Seimitsu Industry in December of this year
(currently Osaki-cho, Toyohashi City)

Column ❷ Post-war Electricity Situation and Attempt at In-house Power Generation

Job advertisement for high school students

80-Year History of Musashi

Job advertisement for junior high school students- 16 -

Many industries were active after the war as part of thereconstruction effort, but the electricity supply could not keep up
and blackouts were frequent. Electricity was rationed and scheduled
blackouts occurred two days a week. On top of those, rolling
blackouts of about 30 minutes happened each day.
Musashi was getting more orders and built a windmill in an

attempt to generate its own power. With a height of 12 meters, thewindmill had angled blades made of plywood sheets with a diameterof 12 meters, but they broke off during strong winds. Next, it tried
using a motor to rotate a main shaft that then moved the machines,
but the noise was too loud and caused a disturbance in theneighborhood, so that plan was also abandoned.

- 17 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

To the Future

2018‒Part 2 Reconstruction 1946–1955■ 1949 / Begin manufacturing thread take-up cams

Japan’s Top Supplier of Thread Take-up Cams

Development of a quiet thread take-up cam

Thread take-up cam

Thread take-up cams and side view in sewing
machineOverseas exports of sewing machines started in 1947. By 1948, theproduction volume of sewing machines topped the highest production volume
before World War II.
As sewing machine manufacturers and parts manufacturers worked toincrease their production volumes, quality-related problems were a major
challenge in the sewing machine industry. At the time, sewing machines thatmade high-pitched noise during operation were considered to be of inferior
quality. The high-pitched noise was closely related to the thread take-up
cam, which is part of the mechanism that moves the thread up and down
in a smooth movement. All the manufacturers were trying unsuccessfully to
manufacture quiet thread take-up cams. Musashi thought that whoever solved
this problem would rule the sewing machine industry.
Amid this situation, Fuji Sangyo asked Musashi to develop a thread takeup cam. With its lack of experience in the industry, this was like a one-in-amillion chance for Musashi.
It went to work right away, analyzing products from other companies
and researching equipment and machining techniques. From this, it foundproblems in the supplied materials and in the grooving method that was used.
Subsequently, it went about procuring materials itself and designing andmanufacturing custom equipment to implement a new machining method it
had devised.
Musashi then manufactured its original thread take-up cams. It had to build
its own production line from scratch to be able the mass-produce them. The
ingenuity and innovation deployed throughout this project resulted in higherlevel technology. This also represented the beginning of a Musashi tradition
that is still alive today.
About a year after developing the thread take-up cam, Musashi was finallyable to deliver the finished product. Musashi’s thread take-up cams earned
positive reviews, and other manufacturers started asking about and ordering
them as well.

Inside the plant

80-Year History of Musashi- 18 -

Company brand built on reputation for quality
Yoshiharu went out to visit manufacturers to increase sales of his thread takeup cams. He realized that Musashi was not yet a well-known name in Japan,
so he created a product catalog and placed ads for Musashi’s thread take-up
cams. Using the catch copy “Better stitching with little noise” and “Inexpensive
at five yen each,” the ads boosted sales efficiency.
Sewing machine manufacturers were split between large companies that
manufactured many parts in-house and smaller companies that specialized inassembly. Many parts manufacturers were involved in the assembly business.
Yoshiharu targeted sales activities not only at the big companies but also
at companies like these assemblers. He followed a grueling schedule that had
him leave on Monday each week and return the following Monday.
As he went around Japan listening to feedback from customers firsthand,
he sensed a high level of demand for Musashi parts in the market andchanged the brand name of his thread take-up cams from Rhythm Parts toMusashi Parts. He consolidated production of many types of parts to focus
mainly on thread take-up cams and worked to expand sales channels as athread take-up cam manufacturer.
His dogged efforts to sell products around the country increased Musashi’s
name recognition in the sewing machine industry as well as sales of thread
take-up cams. Musashi’s sales in 1950 came to 2.83 million yen but rose
sharply to 25.52 million yen by 1955. Musashi accounted for 65 percent of thethread take-up cam market share in Japan and was now the top thread takeup cam manufacturer in the nation.

Ad for thread take-up cams (from Rhythm Parts to Musashi Parts)- 19 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

To the Future

2018‒Part 3 Turning Point
Japan experienced special procurement demand from the
Korean War (1950–53), and the mid-1950’s economic boom
starting in late 1954 signaled the beginning of Japan’s periodof high economic growth.
In 1960, the Cabinet of Prime Minister Hayato Ikeda
announced an income-doubling plan, and consumers
sparked a boom in sales of the three status symbols of home
appliances: black-and-white televisions, refrigerators andwashing machines.
Per-capita national income was rising sharply, anddemand was growing for motorcycles and cars as well.
Honda Motor Co., Ltd. was the leader in the motorcycle
industry. Honda launched the Cub F-Type motorcycle in
1952, which became a huge hit with mass appeal as a
motorized bicycle easy to ride for both men and women.
As part of its global sales strategy, Honda establishedthe Honda Motor Hamamatsu Plant (currently named
Transmission Plant) in the city of Hamamatsu in 1954. Musashi
started sales to Honda in 1956.

80-Year History of Musashi- 20 -- 21 -

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

Part 3 Turning Point 1956–1960

To the Future2018‒■ 1956 / Begin sales to Honda Motor Co., Ltd.

Began Sales to Honda

Developing business with Musashi technology
Home sewing machines quickly achieved market penetration with massproduction soon after WWII, and began to be exported to countries aroundthe world. Subsequently, however, the production volume of home sewing
machines gradually began to fall due to market saturation in Japan and risingproduction costs that weakened international competitiveness.
Always looking ahead to what the future held, Yoshiharu was concerned
about the prospects for the sewing machine industry and started searching for
a new business where he could leverage the technology Musashi had built up
in thread take-up cam and feed cam manufacturing.
He first turned his attention to the automotive industry. Fuji Seimitsu Industries(later becoming Prince Motor Company), which Musashi’s sewing machine
division did business with, started manufacturing automobiles. Thus, around1953 Musashi also started conducting research on automotive parts. Musashi
spent about two years conducting research and making prototypes, but gave
up after not succeeding in getting any customers.

New opportunity for business development
Just around that time, Honda was achieving rapid growth in the motorcycle
market. Honda R&D Co., Ltd. (Honda) was established in 1948 and released
the Dream E-Type motorcycle with a four-stroke engine in 1951, followed by
the release of the Cub F-Type motorcycle with auxiliary bicycle engine, which
achieved mass popularity. Honda increased its sales to account for around 70
percent of industry production in 1952.
Honda was under pressure to meet demand with mass-production andwent looking for companies that could manufacture motorcycle parts.
Yoshiharu knew that an old colleague from his days at Nakajima Hikoki K.K.
was now the plant manager at Honda’s Hamamatsu site, and he set out tomeet him after a 20-year gap. The plant manager trusted Yoshiharu,
recalling his integrity and technical skill from their time together at
Nakajima Hikoki K.K., and agreed without hesitation to buy parts fromMusashi. This is how Musashi started doing business with Honda.

Honda the Dream E-Type motorcycle

Obtaining orders from
Honda’s Hamamatsu Plant

Plant in 1960 1: Machine shop entrance

Plant in 1960 2: Operating drill presses

Plant in 1960 3: Machine work

Plant in 1960 4: In front of the officePlant in 1960 5: Materials warehouse

Plant in 1960 6: Tempering work

80-Year History of Musashi- 22 -In September 1956, Musashi received an order for camshafts and shift drums
for the Benly motorcycle from Honda’s Hamamatsu Plant. This was its first
foray into camshaft manufacturing, which today is Musashi’s main businessactivity.
Soon after this, Honda’s Hamamatsu Plant requested a plant inspection.
At the time, Musashi was a small plant with capital of two million yen and
55 employees, but Honda expressed interest in Musashi’s manufacturing
operations and sent a team to take a plant tour.
The Honda employees, dressed in white work clothes, closely watchedMusashi’s operations and inspected the inner workings of its jigs and thestructure of custom-built equipment, and started a lively exchange of questions
and answers ensued. Apart from their company affiliation, the engineers
became engrossed in their mutual pursuit of manufacturing and how to do it
better.

- 23 -

Honda Motor Hamamatsu Plant

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989■ 1958 / President Soichiro Honda of Honda Motor Co., Ltd. visits Musashi Sangyo■ 1960 / Company dining hall completed

Global expansion Innovation

1990‒20052006­­‒2017

Part 3 Turning Point 1956–1960

To the Future2018‒■ 1959 / White company uniforms adopted

Meeting with Soichiro Honda

Soichiro Honda and Otsuka Yoshiharu
By 1958, Soichiro Honda had heard of Musashi’s reputation and came to visit
its plant, showing up in a bright red sports car. Honda in 1958 was planning
to release the Super Cub C100, a motorcycle that would go on to set theworld record for the largest production and sales volume of any motorcycle.
Soichiro Honda was inspecting Musashi as a parts supplier for this motorcycle.
He showed interest in Musashi’s thread take-up cam structure, but wanted toknow if the less-than-ideal rotation could be improved. After Musashi told himthat it lacked the funds for development, it received financing of 10 million yen
with no strings attached.
Mr. Honda was also a young man of 15 when he went to Tokyo to hone
his skills. This was the first time he and Yosihharu met, but their conversation
flowed easily. Yoshiharu was attracted to Mr. Honda’s way of thinking andhis charisma. After their meeting, he decided to ultimately withdraw from thesewing machine industry one day.
Mr. Honda was a very busy but he would visit Musashi, sometimes byhelicopter, and deepened his friendship with Yoshiharu. They became golf
buddies.
Soichiro Honda visiting by helicopter

Modernizing the plant with assistancefrom Honda
After Mr. Honda visited Musashi, sales to Honda quickly grew.
In April 1958, Yoshiharu heard that Honda was building a new plant tomass-produce 50-cc motorcycles in Shirako City, Saitama Prefecture, and hevisited the Saitama Plant through an introduction from the materials divisionat Honda’s headquarters. By coincidence, Hiroshi Takeshima, who had been
the manager of the Hamamatsu Plant, was the manager of the Saitama Plant,
and he asked Yoshiharu to make some prototypes. He wanted Musashi tomake drive gear, camshaft, and gear shifter prototypes in one week. When
Yosihharu explained that he did not have the equipment to make gear
shifters, however, he was immediately given 30 million yen in financing. Using
financing from the Japan Development Bank in addition to these borrowed
funds, Musashi installed automatic lathes from Miyano and turrets from
Hitachi to be able to conduct mass-production. Musashi now had the latest
equipment, which lifted it out of the ranks of a plant shop and put it on the path
to becoming a parts manufacturer.
In 1960, when the Super Cub hit production of one million, Musashi wasoperating without days off. Trucks loaded with products departing to makedeliveries by the deadline.
Musashi, which was building up a track record in parts deliveries and wasadded to Honda’s timetable delivery program, became accepted as a newface in the Honda Group.
Miyano automatic lathe

Column ❸ Waging War on Price
As sales to Honda were expanding, providing products of value wasa constant expectation. In addition to quality, manufacturing products
at lower prices was demanded.
After receiving 30 million yen in financing in 1958 and setting
up a system for mass-production, Musashi was told that Honda
was going to manufacture drive gears at its Suzuka Plant. It wasable to manufacture them for five yen cheaper. Musashi lost thecost competition. Indeed, Musashi had its materials supplied andSoichiro Honda (left) and Yoshiharu Otsuka enjoying a conversation

80-Year History of Musashi- 24 -

outsourced several of the processes, so its costs had risen.
This made Musashi realize that integrated production frommaterials procurement to the finished product gave it an advantage.
A promising future could not be had with just machining alone.
Musashi thought that bringing all the processes in-house would open
up a winning lead in the cost competition and decided to enter theforging field.

- 25 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

Part 3 Turning Point 1956–1960

To the Future2018‒■ 1961 / Establish an in-house training center

Expanding Orders in the New Business

Creating a production system forthe expanded production
Musashi began selling parts to Honda in 1956 and the parts volume quickly
grew, allowing Musashi to finally build a two-track business with a sewing
machine division and a motorcycle division. Around 1960, Musashi had
production of thread take-up cams, feed cams, and other sewing machineparts of 70,000 units a day. Motorcycle division had production of 100 F150
models a day and 3,300 C100 models a day.
With Honda’s rapid growth, Musashi learned that it was going to bepresented with an ordering plan along the lines of 100,000 parts per monthstarting in May 1961. Seeing this as its big opportunity for future growth,Musashi quickly brought in a wide range of equipment, including gear cutters,
turret lathes, barrel finishing machines, custom turning machines, andpolishing machines, so that it could produce 100,000 parts per month.
To sustain this mass-production system, Musashi hired 70 new employees
in fiscal 1961, increasing its number of employees to 230. It also establishedthe new positions of deputy manager, group leader, and leader to strengthen
its organization.
Of the new employees, 42 of them had only graduated from junior highschool, with most of them coming from Akita Prefecture. Musashi established
a youth school in Toyohashi City for them. President Yoshiharu Otsuka invited
Nagamitsu Nakazawa, who had helped him during the war, to teach general
education for two hours every Saturday and Sunday, covering subjects like
Japanese, social studies, drafting, and English.

Commemorative photo with new employees (1974)

Establishing an in-house job training center
Nagamitsu Nakazawa

Certificate of completion of job training (for Yokichi
Shibata in 1963) and practice questions for a social
studies exam
“State the objectives of the Ford system”“What type of business is a corporation?”“What is the price index?” etc.

80-Year History of Musashi

In April 1961, Musashi established an in-house job training center that was
separate from the youth school, aiming to create a system able to supply highquality products even with mass-production. There were 37 participants forthe first term. The training period was one year for regular employees. For
the high school division, if employees completed three years of training they
were treated the same as vocational high school graduates. Mr. Nakazawa
was appointed director of the center, and licensed teachers came to teach theemployees.
The job training center was a novel idea at the time, receiving attention
and even news coverage on national public broadcaster NHK when it wasestablished.
Later on more high school graduates came to work at Musashi, andcompany relocation made the training facilities no longer available for use.
The job training center was closed in 1965.

- 26 -

In-house job training center

Residents of the juvenile dormitory

Column ❹ Intensified Cost Competition with Trade Liberalization
For several years after World War II, Japan restricted imports
from other countries in order to protect domestic industry. Japan
increased its international competitiveness with protectionist policies,
but was pressured to liberalize trade when it joined the United
Nations in 1956. After an import liberalization plan was finalized in
1960, foreign products such as motorcycles were imported and theprice competition began.

In 1964, Japan transitioned to an Article eight nations in theInternational Monetary Fund (IMF) and could no longer restrict
currency exchange. With trade liberalization, Honda and all othermanufacturers needed to procure parts as cheaply as possible. Parts
manufacturers including Musashi also needed to run operations that
produced high-quality products at low prices to weather the impactsof liberalized trade.

- 27 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

To the Future

2018‒Part 4 Growth
By the mid-1960s, Japan was achieving export-driven
economic growth. Japan’s international competitivenessincreased in heavy chemical industrial fields where capital
investments were made, and exports of steel and electric
products increased sharply.
A strong trend emerged in Japan of owning “the three C’s”:
a car, a color television, and an air conditioner. These durable
goods achieved penetration in average homes. Around thistime, the industrial structure was also growing more complex.
In manufacturing settings, the use of assembly robots andautomation was rapidly rising.
Musashi too brought in a Komatsu May Press for forging in
1963, and a Dynapac machine for hot forging in 1965. These
were some of the steps Musashi took to create an integrated
production system with the goal of making low-priced, highquality products.

80-Year History of Musashi- 28 -- 29 -

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989■ 1961 / Implement the first rationalization program■ 1965 / Complete Suzuka Plant

Global expansion Innovation

1990‒20052006­­‒2017

To the Future

2018‒Part 4 Growth 1961–1975■ 1965 / Ueta Plant begins operations

Production System Upgrades in Japan

Company name changed toMusashi Seimitsu Industry Co., Ltd.

Ueta Plant (1967)

Musashi announces its name change in thecompany newsletter (published in March 1963)

Musashi had prepared for Honda’s plan to produce 100,000 Super Cub
motorcycles a month, but the plan had to be curtailed. Enforcement of theRoad Traffic Law, which went into force in December 1960, was predicted
to put a damper on motorcycle purchases, and heavy snowfall had cut into
motorcycle production.
To make up for this downturn, Musashi went around to companies
such as Kubota Tekko K.K., which manufactures farming and otherequipment, and machine tool manufacturers such as Enshu Limited,
Daikin Manufacturing Co., Ltd. (currently Exedy Corporation), andShinko Electric Co., Ltd. and successfully won orders for parts. At the sametime, Musashi increased production of its sewing machine parts, whose
production had been temporarily lowered, and overcame the potential crisis.
In February 1961, Musashi carried out the first rationalization program fora year to address the cost competition that had been intensifying with eachpassing year. It succeeded in reducing man-hours by 26.5–37 percent by
setting up production lines for gear shifters, camshafts, and drive gears withdaily production of 2,000 units each, and establishing a concentrated polishingsystem.
In the second rationalization program, carried out from January 1963 to
October 1965, Musashi reorganized its company structure. It separated work
into occupations and created the broad divisions of Business Operations,
Manufacturing, Engineering, and General Affairs. It also established the three
new sections of the Planning Department, tasked with drafting comprehensive
plans and tracking management conditions, and the Production Technology
Section and Development Section within the Product Research Division.
Musashi systematically carried out human resource transfers to facilitate
raising employee morale, assigning the right people to the right positions, anddeveloping individual abilities.
While conducting these internal reforms, Musashi also changed its nameto Musashi Seimitsu Industry in September 1963 to explicitly convey its
identity as a manufacturer of precision parts (seimitsu refers to “precision”). In
1966, the Head Office was moved from Osaki to Ueta in Toyohashi City, Aichi
Prefecture.

it constructed the Suzuka Plant. This was at the request of Honda’s Suzuka
Plant, which had been impacted by the destructive Isewan Typhoon of 1959.
In June 1965, Musashi constructed a two-story building that served as offices
and a warehouse close to Honda and began parts production in July.
In October 1969, it purchased land of approximately 21,000 square
meters that included the site of an elementary school and adjacent private
land after deciding on the spot to accept incentives to locate a plant in
Horai-cho (present-day Shinshiro City) in Aichi Prefecture. Musashi had
received work orders from Kubota Tekko, but the Ueta Plant had no extra
capacity, so Musashi went looking for new plant land.
At this same time, Musashi received an order from Kubota Tekko forreaper-binder steering transmission assemblies and obtained land for aplant in Utsunomiya City, Tochigi Prefecture. Just around this time, however,production of farm equipment was falling from the Japanese government’s
policy to reduce the amount of land used for rice cultivation, and the plant did
not start operations until August 1973. The plant was expanded to some 1,300
square meters in December 1975, but business performance did not improve,and it has been used to assemble lower control arms for Honda’s Sayama
Automobile Plant at the Saitama Plant since July 1981.

Horai Plant

Utsunomiya Plant

Building new plants in other regions
to meet customer needs
Ahead of the head office relocation to Ueta-cho in January 1966, theManufacturing Division was moved with the completion of the phase-one
plant construction at the end of 1964. Operations got underway the following
January, but the plant was almost immediately expanded and more land wasneeded.
Musashi then decided to expand its plant footprint to other regions. First

Design plans for Musashi Seimitsu Industry appeared in the Musashi newsletter (published in March 1964)

Suzuka Plant

80-Year History of Musashi- 30 -- 31 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

Part 4 Growth 1961–1975

To the Future2018‒■ 1967 / Begin manufacturing ball joints and engine parts for the Honda N series■ 1970 / Inaugural edition of the Musashi News company newsletter

Entering the Four-wheeled Vehicle Market

Honda and Musashi’s resolve to enter
the four-wheeled vehicle market
When the ban on passenger car production enacted by the General
Headquarters of the Allied Powers (GHQ) was lifted in October 1950,
Nissan Motor Corporation and Toyota Motor Co., Ltd. (currently
Toyota Motor Corporation), which had been operating before WWII, began car
production. In 1955, annual production of passenger vehicles in Japan topped
20,000, with Toyota and Nissan, in particular expanding their market share.
The market share of manufacturers had somewhat solidified by the mid1960s when Honda made the bold move of entering the four-wheeled vehicle
market. This was a new venture for Honda, which had become a global
motorcycle manufacturer and won five classes of Grand Prix motorcycle
racing in 1966. Many people responded coolly to the move, saying Honda
was nothing more than a motorcycle manufacturer, but Soichiro Honda saw
the future in four-wheeled vehicles and Musashi decided to join Honda intaking on the same challenge. When President Yoshiharu visited Mr. Honda,
he said that Honda did not have a partner manufacturer that could handle
suspensions, and Musashi threw its hat in the ring.

with production. In August 1972, custom fabricating equipment from Honda’s
Suzuka Plant was moved to Musashi. Startup after the equipment relocation
went smoothly, but Musashi continued having difficulty keeping up withdemand. After almost two months of operating night and day, the N360 had
become a major success both for Honda and for Musashi.

Plants operate at full capacity thanks tothe popularity of the Honda N360
In March 1967, Honda released the N360, a four-wheeled light automobile.
While other companies were selling light automobiles with 20 horsepower foraround 400,000 yen, Honda launched the N360 with 31 horsepower, hightorque, high power output, and a maximum speed of 115 kilometer per hourfor about 100,000 yen less at 313,000 yen. It was an immediate hit. The
N360 replaced other popular models, and Honda jumped to top place amongautomakers of four-wheeled light automobiles.
Thanks to its record of manufacturing camshafts for motorcycles, Musashi
was given the task of manufacturing camshafts for the N360. Once the N360
became a big hit, Musashi’s existing equipment could no longer keep up

Cover photo for the first edition of Musashi News
(published January 31, 1970)

The Honda S500（1964）

Column ❺ Post-WWII Auto Industry Development
After World War II when the ban on automobile production was lifted,
several automakers in addition to Nissan and Toyota undertook
automobile development. Initially, cars in the small 1,000-cc classsuch as the Toyota Crown and Nissan Cedric were sold for around
one million yen, but this was beyond the reach of the ordinary
consumer, who earned less than 10,000 yen a month.
In October 1955, Suzuki Motor Co., Ltd. (currently
Suzuki Motor Corporation) developed Suzuki Suzulight, 360-cc
four-passenger automobile. In March 1958, Fuji Heavy Industries, Ltd.

80-Year History of Musashi(currently Subaru Corporation) released the four-adultpassenger Subaru 360, which became a major hit. Following this,Toyo Kogyo Co., Ltd. (currently Mazda Motor Corporation) released
the Mazda Carol 360, Mitsubishi Motors Corporation released the
Minica, and Daihatsu Motor Co., Ltd. released the Fellow. All were
new forays into the light four-wheeled automobile market. These cars
had prices that the average consumer could afford, and automobile
ownership spread around Japan.

- 32 -The Honda N360（1969）

The Honda Civic（1972）- 33 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

Part 4 Growth 1961–1975

To the Future2018‒■ 1963 / Install Komatsu May Press ■ 1967 / Successfully put Mitsubishi Dynapac into operation■ 1974 / Build new plant specializing in hot forging

Beginning of Integrated Production

Challenge to produce parts as cheaplyas possible

Komatsu May Press

A latecomer to the four-wheeled auto market, Honda gradually increased
its share by using a low-priced strategy of selling cars for 100,000 yen lessthan its competitors. Honda therefore needed to get parts at the cheapest
price possible, and Musashi went about conducting research on how to makeparts for less. While focusing on development of ball joints, which form partof a car’s suspension, Musashi started efforts to move into the forging field.
Musashi was also collecting information from outside sources, and it became
interested in Komatsu Industries Corporation’s May Press. If it could forge
parts, the machining process could be reduced to one-third the work it usually
took. Musashi decided to install the press to make drive gears more cheaply.
In August 1963 when Musashi installed Komatsu’s May Press, it set out
right away making prototypes of shifting gears. The machine’s pressure,
however, was too high, and Musashi could not get the quality it needed. The
prototypes were never put into practical use. Nonetheless, development staff
did not give up. They continued making prototypes for a little over a year,
never stopping their research even though their pride was wounded. Thenin December 1964, they succeeded in using a cold forge process to massproduce kick pinions and kick ratchets that were superior to the existing parts
created through milling. The time to make the parts was also dramaticallyshortened to seven to eight seconds per part.
This achievement not only reduced costs and time on the production line,
it was also the initial innovation that set Musashi on the path of metal forming.

Completion of an innovative forging
machine focused on cost
The Dynapac machine installed in December 1965 also took about
two years to be put into operation. The machine was developed by
Mitsubishi Heavy Industries Limited as a high-speed, energy-intensive hot
forging machine, and the machine installed at Musashi was the first one
delivered to a customer.
The Dynapac had a big problem, however. The acceleration rate at which
the hammer mechanism swung down was 1,000 times greater than thegravitational acceleration of the earth, and this impact affected the operationof the machine itself, the hydraulic devices, and the molds. Engineers from
Mitsubishi Heavy Industries visited Musashi almost every day and worked withMusashi departments to attempt improvements, but it was not easy to finda solution to the unprecedented problem. Still, the team did not give up andcontinued tackling the problem with fierce determination. Later, an engineer
from Mitsubishi Heavy Industries who was part of this team talked about how
the “Musashi mindset” had impressed him.
Then in November 1967, the team succeeded in putting the Dynapac into
practical operation—their hard work finally paying off in a big way. Typically,

80-Year History of Musashi- 34 -

Mitsubishi Dynapac

round steel bar is cut and milled to create a shape in a five-step process.
With the Dynapac, steel is placed in the mold and deformed, creating theshape in just one step. The innovative forging machine was now complete.

Realization of in-house production from molds
to assemblyWith the installation of the Dynapac, Musashi started forging bevel gears.
Then Musashi began operating two Dynapac machines due to increasedorders from Kubota Tekko and higher production volume.
In November 1974, Musashi constructed a new plant just for hot forging.
Musashi set up a new 1,600-ton press and two press lines, with a highfrequency heating furnace coupled with a heat soak normalizing furnace onan automated line. The manual task of inserting steel was automated with
an automatic feed machine for hot forging material. Musashi also started
producing the molds for in-house use instead of outsourcing this process as
it had in the past, installing mold production equipment such as an electric
discharge machine.
As a result, a sequence of processes of making molds, forging, machining,heat treating, finishing, and assembly could all be done internally. Musashi
finally completed its foundation for integrated production.
This manufacturing line, completed by hand, became a model for
subsequent integrated production lines at Kyushu Musashi Seimitsu andplants outside Japan.

- 35 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989■ 1970 / Increase capital from 100 million to 150 million yen

Global expansion Innovation

1990‒20052006­­‒2017

Part 4 Growth 1961–1975

To the Future2018‒■ 1973 / Ceremony commemorating 35th anniversary

Joining the Ranks of Medium-sized Enterprises,
Celebrating 35 years in Business

Growth to a medium-sizedenterprise and an oath

Musashi News
(10th edition, published January 1, 1971)

Having increased its sales mainly through its auto parts business, Musashi
increased its capital from 100 million to 150 million in October 1970. Musashi
had sales of 3.14 billion yen for the same fiscal year and around 540
employees, joining the ranks of medium-sized enterprises. The in-housenewsletter Musashi News (Ninth edition, published December 10, 1970) also
ran an article with the headline “Musashi Finally a Medium-Sized Enterprise.”In the 10th edition of Musashi News (published January 1, 1971), thefollowing was written to describe the Musashi Spirit.
1. Customer first 2. Integrity 3. Resourcefulness
4. Hard work 5. Cooperation for the common goal
6. Remember our rights and responsibilities
In addition, the spirit of foundation of “Simple and Sturdy” and “Consistent
Sincerity” was first published in this edition.
President Yoshiharu Otsuka said, “Both in history books and over my long
life, I have seen many companies rise and fall. But few companies made up
of a group of people drawn together with a spirit of consistent sincerity and asimple and study character fall. We must not forget this truth.”
He reaffirmed the perpetual need to carry on the Musashi Spirit developed
through employees’ commitment and passion for manufacturing and ties toeach other forged since Musashi’s founding.

Looking back over 35 years,
expressing appreciation to employees

The “Musashi Ballad Dance” performed by theMusashi Bijoren at the 35th anniversary ceremony

80-Year History of Musashi

In November 1973, Musashi marked its 35th year in business and held a35th anniversary ceremony at a hall to commemorate the occasion. It had
574 employees that year, hailing from Hokkaido in the north to Kagoshima’s
Tanegashima in the south and everywhere in between. Associations wereeven set up for employees from the same prefecture.
Before the ceremony, a slide show of Musashi’s 35-year history was
shown. The mood in the hall became electric as the audience watched therealistic depiction of operating the plant during wartime, the atmosphere andthe difficulties it faced, including models of Zero fighter planes and air raidsirens.
At the podium, President Yoshiharu Otsuka reflected on the company’s
35 years of history, remarking, “Today is a milestone for us, and I ask foreven more of your efforts to build on our valuable traditions, investigate newtechnologies, and pool our knowledge and expertise to achieve future growthand development.”
A total of 29 employees who had worked at Musashi for 20 years or longer
received commendations for their service, and the event program featured
performances by various groups and divisions including the prefecture-based
employee associations introducing the diverse cultures of their hometowns,
the unmarried employees’ dormitory, the martial arts club, and each division.

- 36 -The hall was filled with applause and laughter.

Ceremony commemorating Musashi’s 35th anniversary

Employees receiving service commendations for
20 or more years of service

Column ❻ Successful Development of Oil-free Ball Joints
With its commitment to manufacturing craftsmanship, Musashi
established a technology research center in 1968 and appointed
in-house production division to be responsible for technology
development. The main development target was ball joints to aim fordeveloping Musashi-brand auto parts.
Ball joints connect the tires to the car body and transmit thedriver’s intentions to the tires. Ball joints serve the same function
as connecting joints in the hands and feet of the human body. At
the time, ball joints and the housing that supports them were madeof metal and needed to be regularly lubricated with grease (oil) to
reduce friction on their surfaces.
In 1968, Musashi inserted a resin sheet in between the balljoint and the housing. By minimizing friction resistance, Musashi
successfully developed oil-free ball joints.
The oil-free ball joints developed by Musashi displayed excellent
low friction, wear resistance, and shock resistance properties. Theball joints did not show deterioration even after traveling for 500,000
kilometers. Highly durable, the ball joints were an innovative productthat had half the number of component parts as existing products.
With this development, Musashi set up a patent department to avoid
patent-related problems.
In 1980, Musashi completed development of the low-friction
G874 grease together with Nippon Oil Corporation. By enhancingball joint function and life as well as reducing sliding resistance,
this grease successfully reduced torque by more than 20 percent.
Musashi received patents not only in Japan but also in the UnitedStates and earned a strong reputation internationally. Several
competitors applied for usage licenses.

Technology research center(currently the Head Office Manufacturing Office)Initially developed oil-free ball joints- 37 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989■ 1970 / Trial enlist in Self-Defense Forces for new employees■ 1972 / First attempt at National Trade Skills Test

Global expansion Innovation

1990‒20052006­­‒2017

Part 4 Growth 1961–1975

To the Future2018‒■ 1971 / Start of Attack 11

Establishing the Foundation of High-quality Musashi

Reforming awareness throughrank-based trainings

Article about Attack 11 published in Musashi News
(11th edition, published February. 1, 1971)

As Musashi’s number of employees grew and employee ages spanned awider range, it started conducting trainings by company rank. The trainings
were designed to reform the awareness of employees at different ranks, fromnew employees to managers.
Starting in 1970, new employee training included trial enlistment in the
Self-Defense Forces and Zen meditation at Shoju-ji Temple in Suse-cho,
Toyohashi City. Training taking place at the Ishinomaki Youth House, Miyagi
Prefecture focused on the ABC’s of quality management. Section managers
and deputy section managers were given a two-night, three-day training at theToei Youth House in Toei Town, Kita-Shitara-gun, Aichi Prefecture. Starting in
1974, Shimoda Training and All-Night Walks (walking 40 kilometers from thecompany to Irago) were held to deepen teamwork and facilitating interpersonal
relations. At seven in the morning before operations began, managers would
recite the six principles of the Musashi Spirit. After the group recitation, theywould receive instructions and then take roll for their group on the plant floor
before operations began.
It was also around this time when production targets for single fiscal years
began to be set. The Attack 11 targets for fiscal 1971 included a monthly
production value of 110 million yen, an 11 percent increase in sales, an 11
percent increase in productivity, an 11 percent reduction in expenses, and a
1.1-million-yen reduction in process rejects.
In 1971, Musashi began the QC Study Group. The study group focused on
topics such as what the ideal form of manufacturing should be, what quality
should be attained, how to look at things, and methods of perception. Study
meetings were held every other Saturday, and instructors from Honda wereinvited to give lectures. About three months would be spent on one topic sothat what was studied could be put into practice on the job and the results
discussed and digested.

Creation of the QC Circle
and attempts to pass trade skills tests
In February 1972, Honda organized a seminar to reform awareness. It was
titled the First Honda Quality Management Top Seminar, and top managementfrom 50-some partner plants were invited to attend. Three people fromMusashi under the President participated in the seminar. The main topic
was Total Quality Control (TQC), which comprehensively involves affiliatedcompanies in quality management in all processes from the product planningand design stage to manufacturing, sales, and after-sales service.
This initiative was aimed not only at reforming the awareness of thepeople who did business directly with Honda, but of all employees including
management executives to have the awareness of creating better products
faster and for less cost. In June, Honda held the Tokai Branch 239th QC Circle
Competition, which reaffirmed the importance of reforming awareness for theparticipants from Musashi.
In August of the same year, Musashi sent 20 employees to take National
Trade Skills Tests offered by the government to certify the level of skill
mastery. This was the first time Musashi sent employees to take the tests,
and eight received certification. The trade skills test and certification program
was established in 1956, but Musashi did not have anyone take the tests
until 1972. As part of the efforts to reform employee awareness and promote
TQC, however, Musashi recognized the importance of the program and beganparticipating in it.

Test taker attaching a cutting tool (MEL machinery
plant)

Tested work in the trade skills test
(1) Cylindrical grinding(2) Lathe work
(3) Drill press(4) Jig finishing

Quality study meeting

Training for new employees (1971)

80-Year History of Musashi

First Honda Quality Management Top Seminar- 38 -- 39 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

Part 4 Growth 1961–1975

To the Future2018‒■ 1974 / Establish Kyushu Musashi Seimitsu Co., Ltd.

Creation of Kyushu Musashi as the Mother Plant
for Motorcycle Parts

Big opportunity in the motorcycle business
Decision to move into Kyushu

Plant completion ceremony (1)Plant completion ceremony (2)In January 1976, Honda established its Kumamoto Plant for motorcycle
production in Ozu-machi, Kumamoto Prefecture. This was Honda’s largest
site in Japan, which today mass-produces motorcycles (as of 2018), ATVs,
and parts for general-purpose products for both domestic consumption
and overseas export. Musashi saw Honda’s move into Kyushu as a big
opportunity and decided to take the risk of moving into the town of Nishiki,Kuma-gun, Kumamoto Prefecture. On December 5, 1974, approximately one
year before Honda established its Kumamoto Plant, Musashi established
Kyushu Musashi Seimitsu Company (Kyushu Musashi) in a joint venture with
Honda. Kimitoshi Otsuka was appointed as its representative director.
A groundbreaking ceremony was held in June 1975, and a completion
ceremony was held the following year on April 26, when some 150 machines
were put into operation. The initial plan called for monthly production of
150,000 gear wheels, but the following year saw full production of 500,000
parts a month with two shifts of operations. Kyushu Musashi was designed for
integrated forging, machining, heat treating, and assembly processes. This
plant served as a model when Musashi went overseas and represented a big
step for Musashi’s global development.

Then in 1978, Musashi established a policy to overcome challenging
circumstances and achieve profit targets through teamwork. The following fivetargets were set to achieve the production targets:
1. Establish a control system; 2. Increase productivity by 15 percent; 3.
Zero complaint campaign; 4. 3S safety activities (3S is an acronym for
the Japanese words seiri [sort], seiton [set in order], and seiso [clean]);
5. Create environments conducive to work through circle activities
In 1980, Kyushu Musashi’s fifth year in business, steps were taken
including sending 20 employees to work at Honda’s Sayama Automobile Plant
for six months, but the company was still not able to get out of the red. Amid
this situation, the key to rebuilding Kyushu Musashi, which was on the vergeof bankruptcy, was a commitment to integrated production. Musashi aimed
to create a fully integrated fabrication system at Kyushu Musashi and thenuse it to expand sales channels. Musashi used its network to get orders from
Honda’s Suzuka Plant and Hamamatsu Plant, and Kyushu Musashi gradually
improved its financial standing.
In 1983, the so-called “HY war” broke out between Honda and Yamaha
as they vied for share in the motorcycle market, and Honda launched 45 newmodels over a single year. This resulted in Kyushu Musashi getting orders forhigh-mix, small-lot production. Kyushu Musashi received the order for all of
Honda’s transmission gears and operated around the clock to produce them,but poor work efficiency put a dent in profitability.
Then in 1986, Kyushu Musashi was forced to sharply reduce its production
due to the effects of the yen appreciation following the Plaza Accord reachedin September 1985, and it temporarily sent employees to work at Musashi
facilities in Toyohashi. Nevertheless, it received orders for auto parts in
1987, and after starting this fabrication, its output again rose sharply. Kyushu
Musashi had ridden out a long period of financial deficits and the impacts
from the HY war. In 1996, Musashi bought all of Honda’s outstanding
shares of Kyushu Musashi to make it a wholly owned subsidiary. This is
how Kyushu Musashi came to be the mother plant for motorcycle parts in
the Musashi Group and demonstrate leadership in technological guidance andemployee education for its global plants.

Plant completion ceremony (3)Surviving the HY war to become the motherplant for Musashi motorcycle parts
For Kyushu Musashi, however, steady upward growth was not always thecase. Order volumes were not fixed, and the work was not necessarily
commensurate with the sales price. The company operated in the red for awhile. The Kyushu Expressway and the Hitoyoshi interchange were also not
yet open at the time, and it took three hours to travel one way to Honda’s
Kumamoto Plant. Musashi Kyushu also experienced delays in getting the shop
tools and parts it needed.

80-Year History of Musashi- 40 -

Column ❼ Spreading Kyushu Musashi’s Production Fundamentals around the WorldMy first impression of Kyushu Musashi was that it could not keep up
with production and had a less-than-adequate production system.
It would outsource some aspects of production and get some things
supplied from Musashi’s Head Office, which took time and cost in the
procurement stage. Then I was determined to create an integrated
fabrication system. I wanted to make Kyushu Musashi’s production
system a model for the world. In terms of technology, I also received
support from Honda R&D Co., Ltd. and aimed to make a production
system consisting of state-of-the-art technology.
Meanwhile, I also undertook sales activities to expand oursales channels for motorcycle parts beyond just Honda’s Kumamoto
Plant. We were fortunate to expand sales to Honda’s Suzuka Plant.
We also gained the trust of Honda R&D in the course of working
together, and each time Honda released a new motorcycle model,
Kyushu Musashi was asked to provide estimates for key components
such as the transmission gear shaft. We built a relationship where
Kyushu Musashi received all the transmission-related parts orders.
(from a conversation with Toru Shimizu)- 41 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

To the Future

2018‒Part 5 Expansion
With the 1970s came the sharp rise in marriages and births
by the baby-boomer generation (born between 1947–49). Thissecondary baby boom hit between the years of 1971 and 1974.
Large housing complexes were built in the Tokyo metropolitanarea, around which big box supermarkets were then built. Sitdown restaurant chains and fast food chains also sprang up
around this time.
Highways were built ahead of the Tokyo Olympics in 1964,
and the era of car ownership had arrived, with families goingout in their car on the weekend and holidays.
The first oil crisis that hit in 1973 caused economic
recession in Japan. The only winner during this period was theautomobile industry. Supported by technology innovations to
mitigate rising oil prices and improve fuel economy as well as
brisk exports, this leading industry of Japan experienced major
growth.

80-Year History of Musashi- 42 -- 43 -

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960■ 1977 / Launch of logistics project teamGrowthExpansion

1961‒19751976‒1989■ 1982 / Complete Akemi Plant

Global expansion Innovation

1990‒20052006­­‒2017

Part 5 Expansion 1976–1989

To the Future

2018‒■ 1983 / 45th anniversary

Logistics Reforms and Forging andMotorcycle Business Expansion

Results achieved by the logistics project teamIn January 1977, three years after the establishment of Kyushu Musashi,Musashi created a logistics project team. With its growing number of
production sites, Musashi wanted to make the flow of transportation, loading
and unloading, storage, packaging, and information in logistics more efficientfrom the main plant to other plants and customers. Logistics accounted for alarge proportion of plants’ total production activities. Reducing the volume oflogistics and facilitating smoother production operations would enable making
higher quality products at lower cost.
Musashi’s logistics project team conducted education and other activities,
such as receiving suggestions for improvements from employees working inplants. The number of suggestions for improvements gradually increased as
did their quality. Employee awareness of logistics also rose.
These attempts to improve logistics efficiency played a significant role inMusashi’s business as the number of plants in Japan and around the world
increased.

Beginning of operations at the Akemi Plant
and Noto Plant

Photo commemorating the 45th anniversary ofMusashi

In 1981, Musashi decided to build a forging plant at the Akemi industrial basein Toyohashi City. Musashi had initially planned to add a hot forging pressat its main plant, but the Fire Service Act required that the entire building be
redesigned and rebuilt. So Musashi went looking for another place to locate
this plant and settled on the Akemi industrial base. The Akemi Plant wascompleted in August of the following year and began operations. The plant
adopted a saw-tooth roof style that allowed natural light and ventilation in.
In October 1983, Musashi unveiled a second plant timed with events
celebrating its 45th anniversary and also held a large sports festival. In June
1989, a third plant was completed on the ground that had been used for a
sports field and a parking lot, and now three plants were in operation at the
Akemi Plant.
In January 1990, the Economic Promotion Office of Ishikawa Prefecture
invited Musashi to build a plant there, and Musashi decided to build the Noto
Plant in Shika-machi, Hakui-gun, Ishikawa Prefecture. Musashi was the first autorelated company to move into Ishikawa Prefecture, and did so with the objectiveof establishing a production base for motorcycle camshafts. The Noto region washome to many advanced technological institutions including the Industrial ResearchInstitute of Kanazawa, Kanazawa University, and Kanazawa Institute of Technology.
Key factors behind the decision include the region’s large pool of talented humanresources and the relatively inexpensive land prices. A ceremony to commemorate
the beginning of operations was held in May and provisional operations began.
Operations at the plant officially began in March 1991, and an unveiling ceremony
for the completed Noto Plant was also held in March.

Giving remarks at the 45th anniversary reception

80-Year History of Musashi- 44 -

Unveiling ceremony for the completed Akemi Plant #1

Noto Plant- 45 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

Part 5 Expansion 1976–1989

To the Future2018‒■ 1978 / Conclude agreement with Ford Motor Company to export ball joints■ 1979 / Launch energy- and resource-saving projectFirst Overseas Development, Start of Sales to Ford Motor

Musashi goes overseas after the oil crisis
The first oil crisis precipitated by the Fourth Arab–Israeli War that erupted in1973 caused the price of crude oil to spike and ensuing turmoil in economies
around the world.
Japan’s auto industry saw its market shrink, with falling sales for newcars due to the recession and higher oil prices. Appreciation of the yen also
lowered Japan’s international competitiveness, and many companies wentbankrupt.Some automakers also made plans to purchase parts from overseas.
Parts manufacturers were facing a crisis that imperiled their existence, withdemands to keep down their parts prices so that automakers could reduce
their costs.
Musashi saw this as an opportunity. Future development was notpromising looking at only the domestic market. With its production technology
and quality, Musashi thought it could open doors in overseas markets.

Mr. Velte from Ford Motor Company visiting Musashi(April 7, 1978)

Welcome reception for Mr. Velte from Ford Motor (April 7, 1978)

Musashi technology wins the trust of
a big customer
Making a request through its Japanese branch, Ford Motor Company asked tosee Musashi’s ball joints in November 1976. Then, salespeople from Musashi
took their oil-free ball joints to visit Ford in the United States.
The negotiations with Ford’s purchasing department, however, were
proceeding with difficulty. The engineers gave the ball joints a favorable
evaluation, but an order from the purchasing department always entailed
mass-production. Therefore, they could not decide promptly.
A representative from Musashi was given full authority from management
to conduct negotiations, and he took prototypes to Ford several times andmade product presentations. He succeeded in winning the trust of engineers
at Ford based on high quality of Musashi’s products and his impassioned
presentations. The engineers then went to management and set up a
meeting with Musashi and Ford representatives from corporate, design, andpurchasing.
Ford had up to then bought ball joints from leading U.S. auto parts
manufacturer TRW, but after conducting a review, Ford chose Musashi’s
parts. In July 1978, Musashi officially concluded an agreement with Ford toexport ball joints.

A visit from Ford Motor Company (May 28, 1986)

Column ❽ Secret to Successfully Partnering with One of the Big Three U.S. Automakers
Ball joints are a key safety component of a car on par with thebrakes. In other words, for a manufacturer to buy these key parts—
on which the manufacturer’s existence depends—from an unknown
parts manufacturer was unthinkable. Then, how did Musashi manage
to get a contract to sell these parts to Ford, one of the Big Three U.S.
automakers?
One factor was Musashi’s negotiating style, which was not
typically Japanese. Japanese parts manufacturers often negotiated80-Year History of Musashi- 46 -

for contracts using Japanese trading companies as their agent. If the
trading company was not able to answer a technical question posedby the overseas manufacturer, it would have to take that question
back to the manufacturer in Japan, creating a time lag. Musashi, on
the other hand, vested all authority in Akira Nemoto, who was able
to answer questions on the spot and gain Ford’s trust.
Ford was also reassured by the fact that Musashi had created a
dedicated patent department for its ball joints.

- 47 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960■ 1980 / Establish Musashi USA Inc.

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒2005■ 1982 / Receive the Ford Q1 Preferred Quality Award

2006­­‒2017

Part 5 Expansion 1976–1989

To the Future

2018‒■ 1984 / Establish TAPFirst Step as a Global Company

Building a world-class manufacturing baseMusashi USA Inc.

In 1980, Musashi established the sales company Musashi USA Inc. in a
suburb of Detroit, Michigan (later MAP-MI) and inked deals to sell ball joints to
Ford Motor Company.
Meanwhile, Ford sent engineers to Musashi in Japan several times
for inspections, where they reviewed Musashi’s production processes andconducted tests. Ford’s engineers conducted tests that Musashi had neverseen before, for example, adding iron powder to ball joint grease to test
durability.
In the process of receiving Ford’s inspections, Musashi was able to obtain
Ford’s quality management know-how, namely its failure mode and effects
analysis (FMEA) system and process charts, that it had developed over its
100-year history. Engaging with and absorbing world-standard production
and quality management technology deepened Musashi’s confidence in its
technology and quality.
In December 1982, Musashi received the Ford Q1 Preferred Quality
Award.This certification is only awarded to companies that satisfy Ford’s
demanding quality standards. Musashi was the first Japanese company
to receive this award for a key safety component. The achievement evenreceived news coverage in the Wall Street Journal to draw attention.

Starting local production in the United States
In November 1987, Technical Auto Parts (TAP) was established as the
local production plant for Musashi USA Inc. in Battle Creek, Michigan, withproduction getting underway the following year. Ford had suggested switching
to local production as a way to lower costs.
Musashi’s main customer, Honda, did not have automobile plants in the
United States. Therefore, Ford was the only customer initially. The plant
produced ball joints with a staff of six employees. About 200 ball joints were
produced daily, and the plant remained unprofitable for about three years.But
Musashi did not shut down production in the United States after getting its footin the door. Instead, it waited for its chance.
TAP continued to operate in the red, and then in August 1988 succeededin getting business from Honda of America Manufacturing (HAM), which was
Honda’s local company based in Ohio. Two years later, TAP received the
HAM Award for Excellence in Quality. It was ranked in the top 10 of some 220
parts suppliers.
Taking advantage of this occasion, Musashi went about sending Japaneseemployees overseas, aiming to internationalize as well as develop humanresources that could play international roles.
Plant commencement ceremony

Ford Q1 Preferred Quality Award plaqueA trade mission from Battle Creek, Michigan visits Musashi (April 3, 1984)

80-Year History of Musashi- 48 -MUSASHI U.S.A. INC.
（currently Musashi Auto Parts Michigan）- 49 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960■ 1987 / Establish MAP in Thailand

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

To the Future

2018‒Part 5 Expansion 1976–1989■ 1989 / MAP opening ceremony

Realization of an Integrated Production System Overseas

Attempt to enter
Southeast Asia’s motorcycle market

MAP opening ceremony

Visitors on a plant tour

In December 1987, Musashi established Musashi Auto Parts Co., Ltd. (MAP),
a local joint venture with A.P. Honda Co., Ltd. and Sumi-Thai International
Limited, in the Navanakorn Industrial Estate in Pathumthani, Thailand. This
was approximately three years after Musashi launched the plant in the UnitedStates.
Honda’s Super Cub motorcycle was a huge hit in Thailand at the time,
resembling the sales explosion in Japan in the early 1960s. Thailand’s
motorcycle market was estimated to have annual sales of around 300,000,
and demand for motorcycles was anticipated both in Thailand and in othercountries in Southeast Asia.
Based on its experience in setting up and running the plant in the
United States, Musashi thought that having local production would give it acompetitive edge. It also decided that having a place for its employees todevelop an international mindset would be a major advantage as it sought toglobalize its operations in the future. Appointing a young employee president
was also a strategic move for Musashi’s future.

The six Guidance for Conduct principles thatform the Musashi Philosophy support
successful entry into Thailand
An opening ceremony for MAP was held on April 28, 1989. Three months
later, Honda built a new plant in Thailand.
The environment was different than in Japan and setting up a local
company in Thailand posed many difficulties, including securing the land,raising the financing, receiving local capital, and installing the machines andequipment. At times there were labor disputes, and lockouts and collective
bargaining sometimes threatened to disrupt production plans. Facing themany challenges that arise in a foreign country, the six Guidance for Conduct
principles of the Musashi Philosophy, written by President Yoshiharu, served
as an important guidepost.
While working to create harmonious relations with the local employees
and diligently tackling his work, trust was mutually deepened, and operations
gradually became smoother. Initially plant operations covered machining,heat treating, and assembling motorcycle transmission gears with the goal of
creating an integrated production system.
That year, Musashi assigned five Thai trainees from MAP to the Ueta
Plant.In October 1991, eight Thai employees went to Kyushu Musashi todevelop human resources in preparation for the new forging line.
Then in February 1992, the latest machinery was installed in the Thai
plant, forging facilities were readied, and the plant began operations. This
gave the Thai plant an integrated fabrication system that could forge, fabricate,heat treat, finish, and assemble gear wheels.
In April 1996, Musashi built a second plant at the 304 Industrial Park in
Prachinburi, Thailand. The two plants were about two hours apart by car. The
plant began selling parts to Honda, Suzuki, FCC, and Toyota among others.

Plant #2

Wise Advice President
Yoshiharu Otsuka Gave to First
MAP-TH President Ikuo Makino

Group photo at the opening ceremony for Musashi Auto Parts Co., Ltd. (April 28, 1989)

Column ❾ Japanese Companies Moving into Southeast Asia in the Mid-1980s
Up until the 1980s, Southeast Asia experienced politicalturmoil with the Vietnam War and coups d’état, accompanied
by lingering economic stagnation. Countries wanted to get
foreign currency and attempted to get plants built to export
products, but with little success.
Things started to change with the Plaza Accord in 1985.
The resulting stronger yen in Japan made it difficult for
manufacturers to maintain their domestic production. As many
Japanese companies considered where to relocate theirproduction facilities, Southeast Asia emerged as a contender.
The countries of Southeast Asia attracted foreign companies

80-Year History of Musashi

In a hand-written letter to President Makino
by President left by Yoshiharu Otsuka, helists his precepts for top management. He
wrote out his wise advice with the goal of
having Musashi blend with the local culture
without losing its own culture and achieving
high-level creativity.

with preferential tax treatment and other incentives. Investment
from Japan and elsewhere shot up.
Taxable income in Japan including corporate andbusiness taxes was as high as 60 percent at the time. But
in Thailand, for example, you could set up a new businessin a special zone and get the first eight years tax free, andthen pay a 15-percent tax rate for the next five years. ManyJapanese companies moved their production plants toThailand.Subsequently, from Thailand listed first, Southeast
Asia experienced a period of high economic growth.

- 50 -- 51 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955■ 1988 / TPM kick-off ceremony

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989■ 1988 / 50th anniversary ceremony

Global expansion Innovation

1990‒20052006­­‒2017

To the Future

2018‒Part 5 Expansion 1976–1989■ 1989 / Supplier Award from Honda

Original Musashi Quality Management System
Supporting Globalization

Parts manufacturers asked to makecorporate improvements
In November 1988, Honda announced a worldwide recall of Civic production
vehicles due to a defective wiper motor. This incident caused Honda to
implement extensive quality management measures at its parts manufacturers
and call for corporate quality improvements. Honda sent out experts in
production management, quality management, manufacturing, maintenance,
and technology to Musashi as well to provide guidance on operational
improvements.
Musashi had already been implementing total quality control (TQC)
activities from the planning and manufacturing stages to after-sales service
since 1972 and welcomed the opportunity to make quality improvements.
It conducted the “150 campaign” in 1975 and the “ABC campaign” in 1980
to improve its corporate quality and achieve zero complaints. Banners andsigns with slogans on them were hung in plants, cafeterias, and hallways inan effort to raise employee awareness. In 1983, it conducted a second ABC
campaign with the objective of becoming an internationally accepted device
manufacturer.

An original Musashi quality management system
based on TPM activities
With its vision of becoming a global company, however, Musashi believedthat it needed to reform its awareness to take into consideration automobile
users and consumers. Musashi needed to leave behind the mindset of a
subcontractor and get away from its plant-shop practices.
Then in 1988, Musashi invited a management consultant to provide

New employee training (1987)

80-Year History of Musashi- 52 -

guidance on corporate quality improvements, of which implementing Total
Productive Maintenance (TPM) activities formed a large part.
Even a small part, when assembled in a mass-produced product, could
damage the product’s value and cause immeasurable losses. To avoid theselosses, first and foremost was preventing defective products from leaving theplant. Ultimately, the TPM activities needed to establish mechanisms thatprevented defective products from being produced in the first place.
Up to now, Musashi had sometimes needed to use workers to perform
maintenance activities, as it did not have enough maintenance technicians tohandle everything amid its growing equipment scale and shift to automation.
TPM activities consisted of having workers understand the basics of thefunction, structure, and system as well as handling and maintenance practicesof equipment parts, conducting general inspections, and ultimately had thegoal of workers being able to conduct independent management.
Cleaning of equipment was consistently encouraged, and by putting TPM
into practice, the workers learned what parts were prone to damage andbreaking. Musashi envisioned the work and work conditions for processes
where oil or chips could fly around, and then created a system to maintainmachinery precision and quality assurance.
President Yoshiharu Otsuka favorably evaluated the quality improvement
activities and sought to elevate them further to create improvements at thelevel of people’s attributes. He did not want employees who only based theirconduct on a manual. Instead, he wanted to embed the strong communication
among employees and divisions that Musashi had cultivated in quality
management. He also stressed the importance of creating an original quality
management system befitting Musashi.

President Kawamoto of Honda visits Musashi to discuss quality management (April 2, 1991)- 53 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960■ 1986 / Launch CAD/CAM system

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

Part 5 Expansion 1976–1989

To the Future

2018‒■ 1987 / Tochigi Technical Center ground-breaking ceremony

Structural Reforms for the New Era

Full support for Honda in
the extraordinary car-buying boom
Around 1986, the so-called bubble economy caused the price of stocks,
real estate, and other assets in Japan to soar. The automobile industry also
benefited from the spread of financial technology and higher consumption. An
unprecedented motorsport fad sprang up around F1 racing, and foreign makes
and luxury Japanese cars were flying off dealer lots.
Honda released new models and frequently redesigned existing models tomeet the growing demand, paving the way for a major increase in production.
Parts plants in the Honda Group were working at maximum capacity day inand day out to meet sharp increases in parts production orders.
Honda then asked Musashi to install production lines to meet its production
system needs. Musashi turned away work from other manufacturers that it had
been selling parts to in order to meet Honda’s needs. It then also received neworders for balance shafts and gears, and this production expanded Musashi’sbusiness scale.
When Honda started operations at a second plant in Ohio, it became the
top Japanese manufacturer in terms of production volume in North America
including Canada. In Japan too, Honda achieved record production of almost
five million vehicles in 1988 excluding light automobiles. The next year,
Honda produced 6.5 million engines, giving it the largest production scale in
the world. Musashi gave Honda its full support, making large investments to
support this record-breaking level of production.

Even greater growth capitalizing
on unprecedented demand
Record-breaking levels of production continued, leading Musashi to announce
an emergency production declaration in August 1989. It was the second suchdeclaration since one issued to address a kerosene leak at the Horai Plant.
The bubble economy caused not just luxury cars but also affordable, midrange cars to have explosive sales, and production could not keep up withdemand. Even if Musashi could make arrangements to get more equipment,
there was nowhere to put it. At times buildings had to be hastily erected.
Emergency declarations were issued in both September and October.
The production circumstances were daunting, with a full-model change of
the Accord requiring acquisition of new technology and use of unfamiliar
production processes. In addition, the labor shortage was growing more
severe due to the large increases in production and the booming economy.
Hiring more employees was not feasible, and Musashi instead looked toautomate its production lines. It set up fabrication equipment and the land andbuildings to be able to mass-produce new parts such as precision-forged gear
wheels, balance shafts, and anchor bolts using new manufacturing methods.
The invested amount grew to almost 10 billion yen.
Musashi was globalizing and had been adding production bases in Japanand overseas, including in Kyushu and Thailand, for the past several years. It
was taking a chance on the large investment. Musashi was going all in to ride
the wave of the times, but this also caused its expenses to balloon with risingcosts for new business development and making molds. It sometimes ended
up over budget. The plants were also not relaxed environments, and thestrong interpersonal relationships that had been a proud hallmark of Musashi
since its founding were also showing signs of strain.
Musashi began initiatives aimed at the next stage of reforms.

Hot-selling cars in 1989 From top,
the Honda Integra, Accord, Vigor, and InspireFirst introduction of the CAD/CAM system to aid production work (1986)

80-Year History of Musashi- 54 -

Exhibit of Honda cars (in front of the Head Office dining hall)- 55 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

発展期

Global expansion Innovation

1990-2005

1990‒20052006­­‒2017

To the Future

2018‒Part 6 Global Expansion
The bubble economy that had started in 1986 finally burst in
1991. Worried about inflation, the Bank of Japan raised theofficial discount rate, which sparked drops in stock prices
and real estate values. The Japanese government tried toresuscitate the economy largely by spending on public works
projects, but this ended up creating deficit financing, and the1990s came to be called the “lost decade.”
Meanwhile, many private companies worked to rebuild
their management and operations after the bubble burst bylaying off employees, entering overseas markets, and shifting
production overseas. The yen grew particularly strong against
the dollar starting around 1993, and Musashi sought to further
expand its overseas footprint. It set up operations in the UK,
Indonesia, Brazil, Canada, and elsewhere in quick succession.

80-Year History of Musashi- 56 -- 57 -

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989■ 1990 / Kimitoshi Otsuka assumes the office of President■ 1993 / 55th anniversary

発展期

Global expansion Innovation

1990-2005

1990‒20052006­­‒2017

To the Future

2018‒Part 6 Global Expansion 1990–2005■ 1991 / Introduce“Refresh”vacation system

Breaking through the Status Quo to Open a Door to the Future

Calligraphy by President Kimitoshi Otsuka (hechanged his given name from Yoshikazu to Kimitoshi
in 1993)

President Kimitoshi Otsuka

resolve, saying that the starting point of manufacturing was the ability to makequality goods as cheaply as possible, and that people and the organization as
the driving forces needed to be engaged to achieve this goal.
The slogan “Clean and Action” was set for employees. “Clean” referred
to making clear what you were going to do about the issues you were facing,and “action” referred to taking sensible, committed action based on theMusashi spirit. The Japanese business practice of the HoRenSo system, ofreporting (hokoku), contacting (renraku), and consulting (sodan), was broadly
implemented as the specific conduct guideline. The working environment wasalso designed to generate original ideas and technology as well as draw out
people’s potential. Musashi aimed to develop middle managers to have anawareness of problems and take the initiative to resolve them.
He also left decisions on installing new equipment up to the worksite. Theinternal company reform that President Kimitoshi was seeking was to have
employees think for themselves and communicate what they were thinking. In
other words, to nurture the Musashi spirit.

President Kimitoshi inspecting a plant

Going back to the origins of Musashi

Cover of the 55-Year
History of Musashi
Seimitsu

Frontmatter of the
55-Year History of Musashi
SeimitsuShow Your Flag
—Remarks by Kimitoshi Otsuka—
We have the expression “Show your flag”
in Japanese, which means make yourstance or opinion clear. This expression issomething I say all the time.
“Your flag” means your flag’s colors,in other words your allegiance, so thateveryone can clearly see who is a friend andwho is a foe.
In these difficult times, we must clearly
define our issues and work as one teamtoward our goals or we will not survive.
This expression means make your own
position clear, and at the same time, as aprofessional, do not do anything half way.

In June 1990, Kimitoshi Otsuka assumed the position of Representative
Director. He was 59 years old. Since joining Musashi in 1957, Kimitoshi
had played a leading role in many key turning points at Musashi, working
at Kyushu Musashi, in the United States, at the Thai plants, and at the
Noto Plant. He made large contributions to Musashi’s growth anddevelopment. The assumption of the office of president by Kimitoshi, who had
an international mindset, could also be called a turning point for Musashi as it
braced for the bubble’s economic peak and inevitable pop.
When Kimitoshi Otsuka became President, Musashi had achieved
significant growth together with Honda and had made large-scale investments
in Japan and overseas, notably by building the Noto Plant and expanding
overseas production facilities. However, President Kimitoshi felt a serious
sense of crisis. As Musashi struggled to keep up with the rapidly expanding
auto market, he felt the company was losing sight of its spirit of challenge
and commitment to manufacturing craftsmanship that represented the origins
of Musashi. Employees and organizational engagement are what allow a
company to achieve growth and meet the changing needs of the times.
Deciding that the key to unlocking prospects for the future starts with staring
down and defeating the group that wants to maintain the status quo no matter
what, Musashi launched a set of reforms.

Re-energizing people and the organization
with “Clean and Action”
On Musashi’s 55th anniversary in 1993, President Kimitoshi talked about this

80-Year History of Musashi- 58 -

Musashi Festa celebrating the 55th anniversary(1993)

Ceremony commemorating Musashi’s 55th
anniversary and the 25th anniversary of labor union
formation (1993)

Musashi Festa celebrating the 55th anniversary (1993)

Column ❿ If There is a Problem on the Production Floor, Suggest a Solution Then and There and Deal with It
Takayoshi Nagashima, who knew a lot about the production floor, wasappointed Senior Managing Director, and he worked to resolve areas thatwere out of alignment with the goal in step-wise fashion. Mr. Nagashima
was an engineer who had worked his way up from Honda’s plants.
When Mr. Nagashima arrived at work, the first thing he did was go to theGeneral Affairs Department and ask if any problems had arisen the day
before. Then he would head over to Accounting Department, where hewould check on ongoing issues and their progress.

Then he would ask Production Management whether there wereany problems with customers, and then go to the plant floor and talkto employees. Finally, he would meet with President Kimitoshi andtalk to him for about 30 minutes.
Like President Kimitoshi, Mr. Nagashima believed that if there
was a problem on the plant floor, a solution should be devised todeal with it on the spot.

- 59 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

発展期

Global expansion Innovation

1990-2005

1990‒20052006­­‒2017

To the Future

2018‒Part 6 Global Expansion 1990–2005■ 1992 / Newly establish Sales Division 2■ 1995 / New corporate logo on the Head Office building (passion, wisdom, harmony)Musashi’s Four-pole System Enabling World Market Entry

Three strategies to accelerate global expansion

Article on the “Three Strategies” published inMusashi News (Vol. 298, issued April 15, 1994)

80-Year History of MusashiMusashi advantages created by
the four-pole structure

President Kimitoshi Otsuka focused on sales, development, and globalizationof Musashi.
In April 1994, President Kimitoshi announced the following three strategic
points as Musashi started its 68th sales term.
1. Upgrade R&D
2. Sales to other companies led by Sales Division 2
3. Expand and upgrade global bases
He thought that independent, ongoing R&D was key to further leveraging
Musashi’s strengths in research and development. Up to this point, Musashi
had created an integrated production system encompassing forging,machining, heat treating, finishing, and assembly for engine and suspension
components, processes that manufacturers had previously split among several
companies. This system achieved high quality at low cost as well as stability
and speed in product supply capacity. Musashi also created a development
system that allowed it to present customers with solutions to their needs inaddition to just following the design blueprints from the manufacturer. In short,further upgrading Musashi R&D was anticipated to lead to a major advantage
unmatched by other companies.
Automobiles are made of approximately 20,000 parts, and about 70
percent of those parts are outsourced. Expanding sales channels to otherautomakers and parts manufacturers that Musashi did not yet do business withwould also create greater management stability. Sales Division 2 therefore led
efforts focused on obtaining sales from other companies.
When the yen rose sharply against the dollar starting around 1993,
declining competitiveness with foreign-manufactured parts was a concern.
Fear of the United States constraining the flow of Japanese parts to the U.S.
grew in the Structural Impediments Initiative talks for autos and auto parts
that was part of the U.S.–Japan Framework for a New Economic Partnership,
which had started around this time. Musashi therefore sought to expand andupgrade its bases not only in Japan but around the world.

As the world economy became increasingly global and marked by change,
mitigating risks posed by a strong yen and environmental risks such asconflicts and natural disasters was a requirement for stable company
operations. For parts manufacturer Musashi, staying only in Japan would
lower its competitiveness in achieving and maintaining high quality at low cost.
Musashi therefore sought to expand its markets primarily from the bases
where it could leverage its advantages as it globally developed its business.
First, Musashi made Kyushu Musashi a wholly owned subsidiary in 1996
and consolidated management. That same year, Musashi built a second
plant in Thailand and expanded its sales channels to manufacturers otherthan Honda. In the United States, Technical Auto Parts (TAP), which had
started local production in 1984, was beginning to operate on solid footing.
TAP-Manufacturing Ltd. (TAP-MFG), established in the UK in 1993, provided
Honda with suspension and steering parts.
Musashi established a four-pole system to expand its global businessbased around Japan, the USA, the UK, and Thailand, where it had built up
operations and business performance.

Research and development work

Trainees visiting Japan to acquire skills from TAP-MFG (left) and MAP-IN (right)- 60 -- 61 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955■ 1993 / Establish TAP-MFG

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989■ 1994 / TAP acquires ISO 9002 certification

発展期

Global expansion Innovation

1990-2005

1990‒20052006­­‒2017

Part 6 Global Expansion 1990–2005

To the Future

2018‒■ 2001 / Establish MEUEntering Europe, Establishing the Musashi Brand

Expanding sales to European automakers
In July 1993, TAP Manufacturing Ltd. (TAP-MFG), a wholly owned subsidiaryof Musashi in the UK, was established to serve as one of the four poles ofglobal development. This was Musashi’s first foray into the European region.
Initially, it delivered suspension and steering parts to Honda of the UK and theRover Group.
Around the same time, it also received orders from NedCar (currently VDL
Nedcar), a joint venture created by the Netherlands’ government, Mitsubishi
Motors Corporation, and AB Volvo. In 1997, TAP-MFG began delivering massproduced parts to NedCar. Then the Carisma (Mitsubishi) and the S40 (Volvo)
started using Musashi’s front and rear stabilizer link assemblies. Successfullyacquiring a third major customer base in addition to Honda of the UK and
the Rover Group held major significance for the Musashi Group’s European
strategy.
With this customer acquisition, Musashi increased its sales to automakers
such as Audi AG and leading primary manufacturers.

Acquiring ISO 9002 certification andjoining the ranks of international companies
For Musashi, which had the goal of expanding business in Europe as well asNorth America and Latin America, TAP-MFG obtaining ISO 9002 certification(quality management) in December 1994 was indispensable to becoming aninternational company. The goal of obtaining this certification of world-classquality assurance system was to do more business with manufacturers both
inside and outside Japan.
Once TAP-MFG was operating stably and Musashi started selling parts
to top-class manufacturers in Europe, Musashi changed TAP-MFG’s nameto Musashi Europe Ltd. (MAP-EU) in September 1999. Soon after Musashi
participated for the first time in the Materialica 99 parts trade fair held in
Munich, Germany. Musashi was the subject of intense interest from leading
German manufacturers as well as many parts manufacturers. The trade fair
subsequently benefited Musashi’s sales activities, with detailed estimatesand business talks arising from it. Then in July 2001, MAP-EU was renamed
Musashi Auto Parts UK Ltd. (MAP-UK).
The Musashi brand had gradually built up name recognition in theEuropean market and was selling parts to more than 10 companies. NonHonda sales accounted for 80 percent of all of MAP-UK’s sales.

Materialica 99 booth (1999)

MAP-UK

Column ⓫ Unexpected Overseas Troubles

Stabilizer link assembly

NedCar’s stabilizer link assembly line

80-Year History of Musashi- 62 -

When developing business overseas, companies must pay attention
to laws, practices, and other norms of the countries they are in.
A serious crisis occurred when TAP Manufacturing Ltd. (TAPMFG) was launched. Soon after beginning to sell parts to NedCar,
the production line was not moving as it was supposed to andproduct production and supply stopped. This almost forced NedCar
to stop its manufacturing line and Musashi risk paying a penalty.
Musashi needed to act fast and was forced to operate its
equipment late into the night. You can quickly call in workers on
production lines in Japan, but the case was different in the UK.

There, local employees went home when night came. So Hiroshi
Taira, an employee who came from Japan to support the launch of
TAP-MFG, other Japanese employees stationed at TAP-MFG, andHiroshi Otsuka, who was on assignment to the UK, ran the machineslate into the night. Everyone came together, and they were finallyable to overcome the crisis. They very narrowly managed to deliver
the products to NedCar. The experience made Musashi realize how
important it was to remember that unexpected troubles could arise
overseas.

- 63 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960■ 1996 / Establish MAP-IN in Indonesia

GrowthExpansion

1961‒19751976‒1989

発展期

Global expansion Innovation

1990-2005

1990‒2005■ 1997 / Capital participation in Motogear

2006­­‒2017

Part 6 Global Expansion 1990–2005

To the Future

2018‒■ 1998 / MGN changes its name to MSB

Entering Indonesia and South America
and the World Motorcycle Market

Surviving the Asian financial crisis
with Group unity

Grand opening ceremony for the MAP-IN

Plant exterior

Visitors on a plant tour

Musashi had established its four-pole structure based around Japan, the USA,the UK, and Thailand, and then established P.T. Musashi Auto Parts Indonesia(MAP-IN) in Indonesia in March 1996. Its large market with some 200
million people and its geographical proximity to all of Southeast Asia weremajor factors behind the decision. The company was expected to showcase
Musashi’s integrated production system containing its most advanced
know-how and expertise. In May of that year, 35 trainees from Indonesia
came to Japan. They split into two groups assigned to the Head Office andKyushu Musashi and acquired manufacturing technology expertise formotorcycle transmission gearbox assemblies.
Musashi had taken all possible preparations for the start of operations, but
in July 1997 after the Thai baht collapsed, the value of currencies across Asia
fell precipitously. This came to be known as the Asian financial crisis, withThailand, Indonesia, and South Korea subsequently accepting help from theInternational Monetary Fund (IMF).
By May 1998, the Indonesian economy was effectively broken, and riots
broke out across the nation. Stores and banks were looted, protesters set
fires, and many Japanese employees stationed at Japanese companies
returned to Japan. Plant operations were not possible, and about six months
later MAP-IN was on the verge of bankruptcy. Sales were made in Indonesianrupiah and payments were made in U.S. dollars, which was a major cause of
the company’s deficits. So MAP-IN received work from Kyushu Musashi andthe UK to make and deliver prototypes. Then it started to deliver products to
Honda of America.
Even while experiencing these negative aspects of globalization, theexperiences of bases working together to overcome crises went on to becomea major asset for the Musashi Group.

Realizing integrated production on
the opposite side of the world
In 1997, Musashi invested capital in Brazil-based Motogear. The company
was located in Pernambuco State in the most eastern part of Brazil along theAtlantic Ocean. The area is also known as a tourist destination with year-roundsummer weather and comfortable living. This was Musashi’s first venture into
South America.
Motogear had a long history going back to its founding in 1935. It had
made gear wheels for motorcycles since its beginnings and had started sales
to Honda. It later became a gear plant for Honda, and Musashi decided toinvest capital in it. Then in May 1997, it became the Musashi subsidiary
Motogear Norte Industria de Engrenagens Ltda. (MGN) and changed its name MSB receiving the highest award for excellence atto the current Musashi do Brasil Ltda. (MSB). At the time, this was the only its first Honda Brazil Manufacturers Circle (CHBF)
integrated fabrication facility for sprockets and disk brakes encompassing conference
sheet metal presses, sheet metal fabrication equipment, and plating
equipment in the Musashi Group.
Once MSB’s operations were fully underway, Musashi moved into
northern Brazil, in the middle of the Amazon rainforest, in March 2002.
Musashi de Amazonia Ltda. (MDA) was established in Manaus in the state of
Amazonas.
Musashi’s global strategy started with a four-pole structure, and in just one
year it extended its operations to the opposite side of the world from Japan—
to South America and then to the Amazon. The Musashi spirit has been
established in South America while maintaining harmony with the local culture.

Column ⓬ Dealing with the Indonesian Crisis
Amid the Asian financial crisis, MAP-IN did not have work and local
employees were waiting at home to be called in. Without something
happening, the company might have gone bankrupt. I thought thatjust waiting around would do us no good. With the mindset that we
had the equipment, workers, and everything else we needed, I set
out looking for work. I asked Kyushu Musashi and the UK for workand got it. After that, I pursued sales at Honda of America’s planttoo.
But I was turned down in the U.S. because we didn’t have a

track record in the country. So I got work from MAP-MI by sendingparts made at MAP-IN to Japan for finishing. Then the products weredelivered to Honda of America. This is how we paid off a massive
amount of debt in the hundreds of millions of yen in 2001 andhave continued to have stable operations since. Musashi’s legacy
of capitalizing on the slightest opportunity and putting our heads
together to find a way forward breathed life back into MAP-IN.
(from a conversation with Toshimitsu Sugai)

MSB

80-Year History of Musashi- 64 -- 65 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960■ 1997 / Establish MAP-CA in Canada

GrowthExpansion

1961‒19751976‒1989

発展期

Global expansion Innovation

1990-2005

1990‒20052006­­‒2017

Part 6 Global Expansion 1990–2005

To the Future

2018‒■ 1999 / Establish MSC in the USA

Further Expansion of Local Production Structure with
New Bases in Canada and the USA

Fostering a sense of unity andautonomy with close community ties

MAP-CA

Donation from President Kimitoshi Otsuka to thecommunity where Musashi had set up businessAlong with entering Brazil, Musashi also decided to enter Canada. The project
moved ahead based on President Kimitoshi’s global strategy of building plants
where there were needs for them.
A ground-breaking ceremony was held for Musashi Auto Parts Canada
Inc. (MAP-CA) in the small town of Arthur, with a population of 2,000, in
Ontario Province in July 1997. The plant began operations in February of thefollowing year. This was the seventh global base for the Musashi Group.
MAP-CA had 40 employees and started out manufacturing ball joint comps
for the Honda Civic. By August, it also started manufacturing parts for Acuramodels.
One hallmark of MAP-CA is its close community ties forged since its
founding, growing together with the community while being an overseas base.
Musashi was the largest company in the town of Arthur. Many employees
knew each other and worked together in a friendly, home-like atmosphere.
Anything good or bad that happened was soon known all around town, and theJapanese employees stationed there made special efforts at communication.
With long-time local residents and immigrants alike having the mindsetof working together, over time a spirit of self-reliance, of nurturing Musashi’s
growth themselves, took hold at MAP-CA.
The company also stands out for the large number of original technologies
and improvements it has made.

Developing the Musashi brandin the ATV market
By the 1990s, many Japanese automakers had shifted to local production in
the United States one after another as a way to deal with trade frictions.
Anticipating strong demand in the U.S. ATV market, Musashi establishedthe new wholly owned company Musashi South Carolina Inc. (MSC) in South
Carolina, USA, in April 1999. Together with MAP-MI, MSC aimed to increase
the presence of the Musashi brand in the ever-expanding U.S. market.
An opening ceremony for MSC was held in June 2001 with many local
dignitaries in attendance, including the governor and U.S. senators forSouth Carolina and officials from Honda. Initially, MSC assembled ATV
transmissions for Honda and fabricated ATV ring and pinion gears for Ford.
In January 2001, around the time MSC was established,Musashi North America Inc. (MNA) was established in a suburb of Detroit,
Michigan. MNA served as the sales office for the three North American bases
including MSC and provided strategic sales support. As a result, by 2007 or
so MSC also started selling parts to Suzuki Motor Corporation and U.S. parts
manufacturer Dana Incorporated.

Opening ceremony for MSC (June 8, 2001)

Local residents were also invited to the ceremony

Plant workers eating lunch together

The nearest town in any direction is more than 20
minutes by car. There is only sky and road for as
far as the eye can see

80-Year History of Musashi

Ground-breaking ceremony in Arthur, Canada- 66 -

MSC- 67 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960■ 2000 / Establish MHM in Hungary

GrowthExpansion

1961‒19751976‒1989■ 2001 / Establish MEU in Germany

発展期

Global expansion Innovation

1990-2005

1990‒20052006­­‒2017

To the Future

2018‒Part 6 Global Expansion 1990–2005■ 2002 / Establish MAP-ID in India

Strengthening the European Business Foundation
and Developing the Indian Market

Building a structure to support
the European strategy

MHM at the time of its founding

Signing ceremony in Ercsi City for a new plant there (November 8, 2000)

To complement the UK, one of the four poles, and expand throughout theEuropean market, Musashi established Musashi Hungary Manufacturing Ltd.
(MHM) in Hungary in February 2000.
It purchased 75,000 square meters of land in Ercsi, 35 kilometers south ofthe capital Budapest. Construction on the plant started that November. This
new plant laid down a system able to cover demand for all of the European
region with the goal of expanding new business opportunities in the parts
market.
In addition, in 2001 Musashi established Musashi Europe GmbH (MEU) ina suburb of Munich, Germany, as its sales office for Europe and began sales
activities to advance its comprehensive business strategy in the European
market. This was aligned with Honda’s strategy to expand business inoverseas markets, with Musashi aiming to achieve consolidated sales of 100
billion yen in fiscal 2004.
MEU’s sales activities to promote operations at MHM focused on
capturing orders for outsourced parts from Volkswagen AG, Audi AG,
Ford Motor Company, and Fiat Automobiles S.p.A., and orders for units andassemblies.
As a result, in April 2004 Musashi began producing aluminum arms for
Audi AG that it had developed independently. It also started producing
camshafts for DaimlerChrysler AG and Fiat Automobiles S.p.A.

80-Year History of Musashi- 68 -

Moving into India’s fast-growing
motorcycle and scooter market
In July 2002, Musashi established Musashi Auto Parts India Pvt. Ltd. (MAP-ID),
its 12th base outside Japan, in Bawal, Haryana, India. Honda also asked
Musashi to enter the fast-growing Indian motorcycle market to meet demand,
which Musashi ultimately decided to do. This was its fourth production base inmotorcycle markets after Thailand, Indonesia, and Brazil.
Musashi initially hired 22 local supervisors. The supervisors collected
some 2,500 applications from all over India and hired 220 regular employees.
After the employees were hired, they were sent to local Honda company
Honda Motorcycle and Scooter India Pvt. Ltd. (HSMI) as trainees until theplant was completed in September 2003. At the end of November that year,
the plant started operations with four groups working in three shifts.
In 2008, the company had expanded its sales channels from only Honda
to include Hero Honda Motors Ltd. (HHML), a local Honda joint venture,and Suzuki Motorcycle India Pvt. Ltd. (SMIPL), which was Suzuki’s local
motorcycle company. As a result, annual production volume grew from an
initial 460,000 parts to over 1 million. Looking back, starting with MAP-MI in
Detroit in 1980, Musashi made a series of bold moves to expand globally. In
the 2000s, Musashi continued global development based around the four-polestructure, moving into Brazil, Hungary, and India.

Ceremony marking the first shipment at MAP-ID(November 18, 2002)

Ceremony marking the first shipment at MAP-ID(November 18, 2002)

Column ⓭ Saying Goodbye to Yoshiharu Otsuka,

Who Had Aggressively Led Musashi’s Globalization

Founder Yoshiharu Otsuka had promoted Musashi’stransformation to a global company. After experiencing the oilcrisis of 1973, he could not see a future for Musashi if it only
stayed in the domestic market. A word from Yoshiharu on
how Musashi’s operations should be global was the start ofwhat Musashi has become today. This enterprising spirit did
not diminish even amid periods of turbulence such as Japan’s
economic bubble bursting and the 2008 global financial crisis.
Musashi made global inroads through all of it.
After his retirement, Yoshiharu often went around to theplants and thanked the young employees for their efforts.
Since founding Musashi in 1938, he had never stopped
believing that youthful energy is what makes a company grow,and that Musashi had opened the doors to its future whileworking and learning together with young employees.

Yoshiharu Otsuka passed away on June 8, 2001. He was
96 years old at the time of his death.

Memorial service for Yoshiharu Otsuka- 69 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

発展期

Global expansion Innovation

1990-2005

1990‒20052006­­‒2017

To the Future

2018‒Part 6 Global Expansion 1990–2005■ 2004 / Listed on the Second Section of the Tokyo Stock Exchange■ 2005 / Listed on the First Section of the Tokyo Stock Exchange ■ 2005 / Complete Akemi Plant #2

Forging Technology Relay Base, Spreading Musashi’sCore Technology around the World

ISO certification for maintaining a high levelof quality assuranceWith increasing globalization, Musashi expanded its global bases andmodernized plants. Meanwhile, it did not let up in its efforts to maintain a highlevel of quality assurance. A leading example of this is acquisition of ISO/TS certification. In 1995, TAP-MFG in the UK was the first Musashi plant toreceive ISO 9002 (model for quality assurance in production, installation,and servicing) certification, and this played a big role in expanding sales in
Europe and North America. The following year, the Head Office and Akemi
Plant #1 and #2 received ISO 9001 (model for quality assurance in design,development, production, installation, and servicing) certification. Startingfrom this, all plants in the Musashi Group have acquired certification to meetcustomer needs.

Listed on the First Section of the Tokyo Stock
Exchange as a global company
Akemi Plant #2

Consolidating all forging technology
at Akemi Plant #2

Inside the plant

80-Year History of Musashi

Entering the 2000s, only companies that were able to deliver high-quality, lowcost products made with specific advanced technology anywhere in the world
when customers needed them could survive in the automotive industry. The
same applied to parts manufacturers.
So in December 2005, Musashi began operations at Akemi Plant #2
as a strategic base from which to communicate to the world its proprietaryknow-how and expertise built up in its core technological capabilities andmanufacturing. The plant brought together the latest technology to achieveadvances in mold technology development, integrated production frommaking molds to mass-production, and reduced environmental load. Musashi
consolidated the forging operations of Ueta Plant and Akemi Plant #1 at Akemi
Plant #2 to enhance competitiveness by creating an integrated production
system. It was decided that Akemi Plant #2 would handle all processes fromforging technology development to mold design and fabrication, producing
prototypes, and mass-production.
Akemi Plant #2 also aimed to be a plant friendly to both the environment
and people as part of Musashi’s activities to conserve the global environment.
For example, the plant uses natural lighting and more efficient ventilation
to improve waste heat generation. The large windows in the dining hall aredesigned to reduce carbon dioxide emissions and create an open atmosphereto eat in. The plant has received recognition for its people- and eco-friendly
design.

- 70 -In 2000, President Kimitoshi Otsuka, who had long supported Musashi’s
growth and development, retired. Yujiro Kobayashi was appointed
Representative Director.
Since being appointed President in 1990, Kimitoshi had strengthened
Musashi’s corporate quality and aggressively developed overseas business,presiding over 10 years of increased profit. Consolidated sales in theMusashi Group in the financial closing for fiscal 2000, the year he retired,reached 100 billion yen.
Musashi had focused on overseas development, and in 2001, participatedin the Frankfurt Motor Show in Germany for the first time. In October 2001,
Musashi exhibited at the 35th Tokyo Motor Show and conducted otherhigh-profile activities to gain recognition for Musashi in global auto-relatedindustries.
As a result of implementing a multi-dimensional overseas strategy,Musashi was listed on the Second Section of the Tokyo Stock Exchange (TSE)in 2004 and on the First Section in 2005.

Frankfurt Motor ShowTokyo Motor Show 2001

Column ⓮ Saying Goodbye to Kimitoshi Otsuka, Who Laid the Groundwork for Getting
Listed on the First Section of the TSE

President Kimitoshi Otsuka was the second president of Musashi
and the successor to the founder.
He made great contributions to Musashi’s developmentwith a balanced approach to company management thatcombined aggressive expansion overseas and strengthening
cost competitiveness with far-reaching elimination of waste andimprovements to corporate financial standing. He liked an expressionthat can be translated as “Joy and sorrow are today and tomorrow,”meaning don’t let yourself get carried away by either the good times

or the bad. As a result of working tenaciously to achieve his goals,
he was able to get the rewards that he believed would come.
After his retirement, he deepened his association with his
hometown of Toyohashi City. He became a permanent memberof the Toyohashi Chamber of Commerce and Industry and served
as the chairperson of the Toyohashi City Citizen Love City CharterCouncil. He poured his energies into citizen activities with the goal ofcommunity development. Regrettably, however, he passed away inJanuary 14, 2004 at the age of 72.

- 71 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

To the Future

2018‒Part 7 Innovation
When its bubble economy collapsed in 1991, Japan saw its
position of leadership also wane while the United States rosein prominence. New business generated by the information
technology revolution, higher work efficiency from the use of
information processing technology, and production method
innovations worked to create strong economic conditions.
Personal consumption in the United States grew sharply, andthrough higher exports to the United States, Japan was alsoable to see signs of economic recovery.
In 2008, however, the U.S. subprime mortgage crisis
triggered the global financial crisis. America fell into a deep
recession, which then spread around the world. Having
promoted globalized operations, Musashi suffered a major
blow, but it returned to its origins and resolutely faced thesituation.

80-Year History of Musashi- 72 -- 73 -

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

Part 7 Innovation 2006–2017

To the Future

2018‒■ 2006 / Hiroshi Otsuka assumes the position of President■ 2006 / Begin support for the Automotive Club of Toyohashi University of Technology

New Leader at the Helm of a Global Musashi

Intensified global competition in a fightfor survival

Change of president ceremony Ⅰ

Change of president ceremony Ⅱ

When President Yujiro Kobayashi resigned in May 2006, Hiroshi Otsuka was
appointed President. Musashi’s operations had grown more international,
with sales outside Japan increasing to 63 percent of all sales, and great
expectations were placed on Hiroshi Otsuka, who had extensive experience
working in the UK and other parts of Europe, to lead Musashi to become evenmore globalized.
The economic downturn not only affected the Japanese economy, butalso sparked competition in a fight for survival in the global motorcycle andautomobile markets. He was taking the helm at a treacherous time that could
alter Musashi’s future.
For example, in the North American automobile market, the Big Threefound themselves on the brink of bankruptcy along with the world’s leading
parts manufacturers. In the Asian motorcycle and scooter market, sales saw a
sharp downturn, especially in Indonesia, due to the escalating price of crude
oil.
Manufacturers in China, South Korea, India, and Taiwan had improved
their capabilities and were forcing other manufacturers into intense competition
not only on quality but also on price.
That year, the Musashi Group had 7 bases in Japan and 14 bases in 10
countries outside Japan including sales offices. It had grown into a global
company with 8,000 employees and sales of more than 120 billion yen.
President Yujiro Kobayashi and President Hiroshi Otsuka at the change of president ceremony (April 22, 2006)

Creating a pillar for future development

Change of president ceremony Ⅲ

After becoming President, Hiroshi Otsuka undertook a macro analysis from abird’s-eye view of what actions should be taken in view of the situation at eachMusashi base around the world.
Meanwhile, he focused on a re-examination of Musashi’s development
on a temporal axis. Around 70 years after Musashi’s founding, he launcheda group to study the history of predecessors like Yoshiharu Otsuka andinvestigate on what basis Musashi had continued to achieve its growth. Afterabout two years of research, the new Musashi Philosophy was established in2007 looking to Musashi’s future. In his 2008 New Year’s address, “Legacyof the Past, Vision of the Future,” President Hiroshi Otsuka exhorted Musashi
members around the world to base their conduct on the Musashi Philosophy.

Change of president ceremony Ⅳ

Change of president ceremony Ⅴ

Column ⓯ President Hiroshi Otsuka and “Legacy of the Past, Vision of the Future”
The spirit over Musashi’s 80 years of history that has been
passed down to fourth Musashi President Hiroshi Otsuka fromfounder Yoshiharu Otsuka is distilled in the phrase “Legacy of
the Past, Vision of the Future. ”During historical times of change,Musashi used resourcefulness and ingenuity to gradually build
its own integrated production system, which would be used as

80-Year History of Musashi- 74 -

Change of president ceremony Ⅵ

a foundation to achieve progress in the new world and future
without hesitation. In his 2008 New Year’s address, President
Hiroshi Otsuka remarked, “I intend to carry on the corporate
culture fostered by our predecessors and ambitiously pushforward with unique Musashi ideas and actions.”- 75 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960■ 2007 / Establish the Musashi Philosophy

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

Part 7 Innovation 2006–2017

To the Future

2018‒■ 2008 / Hold the“Be Unique Festa”to commemorate the 70th anniversary

Hold the “Be Unique Festa” to Commemorate the 70th
Anniversary

Reaffirming the Musashi DNA that has been passed
down to today

Musashi Philosophy booklet

The Musashi Spirit

The Musashi Philosophy was established in August 2007. At the beginningof the next year, President Hiroshi Otsuka said the following at a ceremonymarking the New Year.
“I have looked back again over our history and affirmed Musashi’s DNA
underlying our growth and development. I did this because I felt it necessary
to affirm and share the corporate philosophy that forms the basis for Musashi
members from around the world with diverse values to unite and take action
as one. The wisdom of our predecessors who overcame adverse times isdistilled in our 70 years of history. This wisdom is expressed in straightforwardmanner in our spirit of foundation of Shitsujitsu-Goken (Simple and Sturdy)
and Shisei-Ikkan (Consistent Sincerity) as well as in the Musashi Spirit.”“Musashi founder Yoshiharu Otsuka said, ‘We have seen many companies
rise and fall in history and I witnessed this in my own long life. We must notforget the fact that a group of people who were united in the spirit of Simple
and Sturdy and had the trait of Consistent Sincerity rarely died out.’”“Indeed, our cumulative actions based on a spirit of self-reliance, acommitment to manufacturing and quality, the foresight to accurately assess
the future, and putting customers first have created the foundation for theMusashi Group today. I have now clearly stated anew how Musashi willcontribute to society in Our Corporate Mission, which together with Our Spiritof Foundation and the Musashi Spirit forms the Musashi Philosophy.”“The Musashi Philosophy can be shared and embraced across countries,
languages, cultures, and customs. As long as we practice it simply and

Our Spirit of Foundation

honestly, we can continue to achieve growth and development. What is
important is not understanding its words but putting it into practice. I hope thateach of you, the Musashi members working around the world, practice theMusashi Philosophy and embody Our Corporate Mission to achieve progress.”

Turning what sounds interesting into reality
In November 2007, the Musashi Global Vision 2020 was established as thedetailed ideal of what Musashi wants to be in 2020.
“Be Unique!” is a tagline that expresses the attitude of the ongoing
pursuit of Musashi-style originality (uniqueness). The tagline expressed in the
global vision logo is used on outdoor advertisements and various Musashi
communication tools.
Large billboards have been placed on the roof and wall of a building infront of Toyohashi Station with the global vision logo to impart the feeling of
excitement when people attempt to achieve the same dream. Musashi has
broadly created an image as a manufacturing company that enjoys originality.

Musashi Global Vision 2020

Be Unique!
Turning what sounds interestingin t o r e ali t y b y cr e a t ing andproviding Musashi-brand products
trusted around the world.

—Keywords—
Differentiation
Integration
GrowthOur Corporate Mission

Outdoor billboard in front of Toyohashi Station

Column ⓰ Three-hundred-kilometer Relay Road Race by the Track and Field ClubOn April 5, 2008, the eponymous Be Unique Festa was held
to commemorate Musashi’s 70th anniversary.
Two days before the festivities, 10 people in the Trackand Field Club gathered at Togoshi Park in Tokyo, where
Musashi was founded, and ran 300 kilometers in a relay to
the Toyohashi festival grounds wearing a sash emblazoned
with “Simple and Sturdy” and “Consistent Sincerity. ”Manyparticipants experienced the founding spirit through events likethis that epitomize the concept of “Be Unique!”

80-Year History of Musashi- 76 -

Relay race anchor just before reaching the finish line

- 77 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960■ 2008 / Establish the Musashi Global Center

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

To the Future

2018‒Part 7 Innovation 2006–2017■ 2009 / Close the Noto Plant

Global Financial Crisis and Musashi Decisions

Survival imperiled by sharp downturnin production
On September 15, 2008, the bankruptcy of Lehman Brothers sent shockwaves around the world. The dollar weakened against the yen and caused
exports to the U.S. market to fall dramatically, dealing a major blow toJapanese companies and foremost its automakers. Musashi was no
exception.
In the financial closing a half year earlier in March, Musashi had
proudly posted record-high sales and profit. Musashi had to cut production
substantially with the pronounced downturn in the North American andEuropean markets. Major production adjustments were also unavoidable in
the fast-growing Asian and South American motorcycle and scooter markets.
Even in Japan, most automakers had suspended production, andMusashi’s production lines also stopped. By November, there was no workfor employees to do except clean. Sales in Japan, which had been 40 billion
yen, dropped to about one-third of that, and financing became tight by the endof 2008.Payments for redemption of convertible bonds were coming due inMarch 2009, and Musashi’s very survival was in peril.
President Hiroshi Otsuka was forced to make a difficult decision. He
had to lay off employees. In January 2009, Musashi offered to accept about
100 employees in a voluntary early retirement program. Forty employees
Musashi had planned to rehire (after they had reached the age of compulsory
retirement) were told that their employment extension was being terminated.

Employee wages were also cut approximately in half as the number ofwork days fell with suspended plant operations. Therefore, Musashi decided
to offer support for employees to maintain their livelihood. It implemented as
many support programs as possible, for example giving out interest-free loans
to employees who needed help with their personal finances and allowing
employees to work other jobs on their days off.
At the time, many companies were canceling the unofficial job offers they
had made to students who were waiting to start their new jobs in the spring,a trend that was widely covered in newspapers and on TV. Musashi also was
no exception. Company officers had a big discussion about whether it wasgood to hire the new graduates that had been unofficially offered jobs whenMusashi was not able to sufficiently pay its current employees. Performancein the previous fiscal year was strong, and Musashi had offered jobs to more
students than it did in a typical year.
The discussion became heated, but President Hiroshi Otsuka cut it off bysaying the following.
“We can’t cast off the young people who are our future. Even in thesituation we are in, we need to look to the future and hire them. We will keep
hiring young people to pass down the craftsmanship that we have taken suchpride in.”
He took this decision believing that Musashi would survive and had abright future ahead of it.

Closure of three plants
Overcoming fear and making next leap forward
The world was rocked by the economic slowdown with no end in sight, andMusashi was forced to make a major decision. In January 2009, it decided
to implement a round of layoffs and close three plants. It closed MSC,
MAP-UK, and the Noto Plant in Ishikawa Prefecture. Although closing the threeplants was a major source of worry at Musashi Group companies, President
Hiroshi Otsuka went back to the origins of the Musashi Philosophy and said
the following.
“Markets may be shrinking but they will not disappear. The auto industry is stilla growth industry, and we anticipate growth in emerging markets such as China
and India. In motorcycle and scooter markets as well, new demand is appearingin Asian emerging countries and in the African market. Let us see this turning
point as an opportunity and aim to make the next leap forward.”Musashi had achieved great things using the crises of World War II, the oilshock, and the collapse of Japan’s bubble economy as springboards, and it
was not going to stop now. Always taking a forward-looking approach with theattitude of Simple and Sturdy and Consistent Sincerity was part of Musashi’sDNA. President Hiroshi Otsuka was telling employees that if they based theiractions on the Musashi Philosophy, the path forward would surely appear.

Noto Plant

Impacted by the financial crisis, plants did not operate some days

80-Year History of Musashi- 78 -- 79 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989■ 2009 / Establish new project to reduce overall expenses

Global expansion Innovation

1990‒20052006­­‒2017

Part 7 Innovation 2006–2017

To the Future2018‒■ 2010 / Publish the Musashi Philosophy in booklet form

Corporate Culture Reforms by Practicing the Musashi
Philosophy

Creating the future with a resolute Musashi Launchof the M3 ProjectSigns of economic recovery
Achieving a lean and muscular corporate culture

Musashi set out to improve its corporate culture to be able to compete in the
difficult business environment.
In February 2009, it launched a project to reduce overall expenses,
dubbed the M3 Project. The M3 Project was a companywide, cross-divisionproject with 21 members including 3 full-time team members. The members
led reforms aimed at making Musashi lean and muscular. Losses were
eliminated in all areas including plant floors and the Quality, Technology,
Development, Production Management, Purchasing, Sales, Finance, andGeneral Affairs divisions.
For example, some of the improvements taken in plants were to upgrade
old machinery to increase efficiency and to have the plant employees
take apart the facilities and conduct maintenance on them themselves.
Improvement targets were tackled one by one.
Each department undertook similar efforts to thoroughly eliminate
overburdening (muri), waste (muda), and inconsistency (mura), resulting
in savings of more than 300 million yen. In his 2008 New Year’s address,
President Hiroshi Otsuka remarked, “What is important is not understanding its
words but putting it into practice.” In short, the results of putting the Musashi
Philosophy into practice were taking shape before people’s eyes.

In February 2009, production output fell to 30 percent of its peak. But in March,
Honda showed Musashi its production plan for the next several months, andsigns of economic recovery began to appear. By June, Musashi needed tohire workers to keep up with production.
While the recovery lagged behind somewhat in Japan, North America,
and Europe, the motorcycle and scooter market in India and Indonesia andthe automobile market in China were on the path to recovery. By September
2009, overall production output for the Musashi Group had recovered to about
70 percent of the pre-crisis level.
Viewing the financial crisis as a change opportunity and taking measures
to reduce overall expenses enabled Musashi to quickly achieve a recovery
in its profits. With this achievement, the M3 Project had fulfilled its task ofstrengthening Musashi’s corporate culture and was disbanded at the end of
September. While marking progress in fits and starts, Musashi transformed
into a lean and muscular corporate culture and then was able to stand up
again and take on new endeavors. In November 2010, Musashi established a
new base in Vietnam and began to expand its production capacity in India andChina.

M3 Project team members

80-Year History of Musashi

M3 Project members engaged in serious discussion- 80 -- 81 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989■ 2006 / Establish Karawang plant as the second MAP-IN baseGlobal expansion Innovation

1990‒20052006­­‒2017

Part 7 Innovation 2006–2017

To the Future2018‒■ 2010 / Establish MAP-VN

Strengthening the Business Foundation in High-performing
Asia, a New Base in Vietnam

Asian markets lead world in achieving growthMusashi trained its focus early on the Southeast Asian market, setting up
Musashi Auto Parts Co., Ltd. (MAP-TH) in Pathumthani, Thailand, in 1987
and Musashi Asia Co., Ltd. (MAS) to oversee sales in the Asian region in
Thailand’s capital of Bangkok in 2003. It continued to expand its operations inSoutheast Asia as a strategic key region.
Following Thailand, the Cikarang plant (#1) of P.T. Musashi Auto Parts
Indonesia (MAP-IN) was established in March 1996 in Indonesia to produce
motorcycle and scooter parts, with the Karawang Plant established in
Karawang in December 2006 as the second plant in anticipation of automobile
market growth in Indonesia and other markets in Southeast Asia. It began
producing auto transmission gears and planetary assemblies for HM andcamshafts for Daihatsu among other parts.
Lehman Brothers filed for bankruptcy in September 2008 and Musashi’s
performance fell temporarily, but efforts to strengthen its corporate culture
helped Musashi recover its business performance one year later. The robust
growth in Southeast Asia’s automobile market led Musashi to basically double
its plant footprint in 2013.

Karawang Plant

New base in Musashi’s ASEAN strategy
entering Vietnam
Musashi had found success in Thailand and Indonesia, and it went looking forthe next Southeast Asian market to expand into. It decided on the Vietnamese
market, aiming to enter the fast-growing Association of Southeast Asian
Nations’ (ASEAN) motorcycle and scooter market.
In preliminary market research it conducted in 2009, 10 ASEAN-member
nations (Indonesia, Cambodia, Singapore, Thailand, the Philippines, Brunei,
Vietnam, Malaysia, Myanmar, Laos) accounted for 9.3 percent of the world’s
population of 6.8 billion. One in eight people owned a motorcycle or scooter,
while only one in 46 owned a car. With its large labor force, the world waslooking to the ASEAN for potential new production locations, and rising
standards of living in the nations were projected to spark higher demand for
motorcycles, scooters, and cars. Among these nations, Vietnam’s motorcycle
and scooter market had maintained a steady growth track and Honda
had expanded its production in Vietnam, including exports to neighboring
countries.
The ASEAN–China Free Trade Area (ACFTA) lowered tariffs on parts andmaterials, and Vietnam was expected to serve as a regional parts supply basewithin the ACFTA. Another major advantage was an economic partnershipagreement (EPA) that lowered tariffs on materials and parts procured fromJapan.
In November 2010, Musashi established Musashi Auto Parts Vietnam
Co., Ltd. (MAP-VN) in Thang Long Industrial Park II in Hung Yen Province,

80-Year History of Musashi- 82 -

MAP-VN Opening ceremony

Vietnam. Located within an hour’s commute of central Hanoi, which madeit easier to hire employees, the site grounds had an area of 50,000 square
meters with a building floor area of 7,000 square meters.
The new plant at MAP-VN was completed in August 2011. Facilities weretransferred from Kyushu Musashi (KMS) and MAP-TH in Thailand. Honda Vietnam’s
camshaft line was also transferred to MAP-VN. MAP-VN started manufacturing
motorcycle parts, namely camshafts and transmissions for the Cub andscooters, with product deliveries starting in December.
A large opening ceremony with some 120 guests was held for MAP-VN in
February 2012. With assistance from the Head Office and Kyushu Musashi,
MAP-VN launched production of the world’s first grinding-less camshafts in2013 and started cost reduction activities in the Motorcycle Division.
A parts former was installed in 2014, which marked the start of making
materials in-house and exports. The plant redesigned its layout to reduce
costs and created a system able to not only provide price- and qualitycompetitive parts to Vietnam but also to overseas markets. By proactively
overcoming several challenges it faced, MAP-VN succeeded in turning a profit
early on.

MAP-VN President Yoshinori Mizuguchi giving
remarks

Plant tour

- 83 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

To the Future

2018‒Part 7 Innovation 2006–2017■ 2011 / Flood at MAP-TH #1

Severe Floods Ravage Thailand

All photos were taken during the floods

First base in Thailand
Navanakorn Plant takes a hit
Musashi established Musashi Auto Parts Co., Ltd. (MAP-TH) in December
1987 as its second base outside of Japan in Pathumthani, Thailand, about
60 kilometers north of the capital of Bangkok. Ever since then, the plant had
served as a stalwart source of support and one of the four poles of Musashi’s
globalization. When it was initially built, the plant manufactured parts for
Honda, Suzuki, and Kawasaki motorcycles and scooters, but it gradually
started manufacturing parts for automobiles as well. In February 1996, asecond Thai plant in Prachinburi, located 120 kilometers east of Bangkok,
started operations.
A disaster unexpectedly struck, however, on July 31, 2011. Flash floodsin Thailand’s mountainous region caused flooding that slowly made its way
south. At their maximum height, the floodwaters reached three meters.
Three months after the flooding started, the waters reached Plant #1 in the
Navanakorn Industrial Estate in Pathumthani. Many plants were flooded.

Flooded plantMusashi’s underlying strength is tested
On October 17, the industrial estate issued its first evacuation warning and all
employees evacuated the premises. The next day, the water level rose to 30
centimeters, but the sandbags piled around the plant entrance prevented thefloodwaters from entering the plant.
Nevertheless, the water level rose higher with each passing day. The
plant requested the second plant in Prachinburi to send a pump so that it

80-Year History of Musashi- 84 -

could pump the water outside if the inside of the plant got flooded. During
this time, the plant tried everything it could think of to keep the water at bay,
including using a forklift to hold up the sandbags at the plant entrance. Still,
the water was rising at a rate of three centimeters an hour, and eventually
the wall surrounding the plant could no longer withstand the pressure of therising water and collapsed. There was nothing that the 40 employees who
had worked desperately to protect the company could do. As the employees
escaped to the second floor, a massive volume of water rushed into the plantin an instant. The water level rose to 220 centimeters.
Machinery worth 100 million yen had been delivered to the plant just one
week before. In addition, large presses, some 500 pieces of equipment, andtrucks that could not be moved were submerged by the incoming floodwaters.
Since Thailand is a largely flat country, it takes a long time for floodwaters
to recede. It was about one month before the water was completely gone fromthe plant. Restoration work began on December 6, but plant operations would
not resume until much later, in the following May.
Plant #1 delivered products to 18 manufacturers including Honda, Suzuki,
and Toyota and had sales in the range of 8 to 10 billion yen at the time. Losing
credibility with its customers was a possibility depending on how it handled
production after resuming operations. This was the start of a battle that would
determine Musashi’s true value. At the time, however, no one had the capacity
to realize it.

- 85 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

Part 7 Innovation 2006–2017

To the Future2018‒■ 2012 / MAP-TH appoints special team aiming to quickly resume operations

Getting Out of a Tight Spot Using the Musashi Philosophy

Tackling challenges
no one had ever faced before

All photos were taken during the recovery work

There were a variety of challenges waiting as MAP-TH attempted to fillits parts orders during the approximately six months until it could resume
operations. The plant and the production equipment needed to be restored,
product quality and production volumes needed to be secured, and estimatesof the optimal time and expenses to do these things needed to be submitted
and then implemented without fail. All of these things needed to be done
without incurring delays. The flood disaster was not a justifiable reason fordelivery delays.
Musashi’s history was a history of winning customer trust by always
meeting customer demands. For example, when there was an electricity
shortage in the aftermath of WWII, Musashi attempted to generate its own
electricity by erecting a windmill and running a generator. In 1958 whenMusashi received a large order for shifting gears from Honda, it got alarge loan it needed to install the latest equipment. It met the demands bydemonstrating immediate decisiveness. It had done what it needed to do using
creativity, its capacity to take action, and the founding spirit of Simple andSturdy and Consistent Sincerity.
It could not lose the trust of its customers here in Thailand either. But thena request came from Toyota, which for MAP-TH at the time was an importantcustomer.

Companywide effort to conduct
substitute production
Plant #1 that had flooded delivered gears for Toyota pickup trucks. Around2,000 trucks were produced daily, and MAP-TH supplied about the same
number of gears. Toyota assembled the parts separately in Thailand andArgentina. If they ran out of inventory, their plant production lines would stop.
The gears supplied to Toyota, however, entailed complex manufacturing
technology. Production could not be started right away, causing delivery
delays.
When MAP-TH went to Siam Toyota Manufacturing in Thailand, thepresident told them, “The supply chain must not be broken. If you need people
or machinery, Toyota will give you its full support.”
MAP-TH manufactured eight types of precision parts for Toyota. To
replace this production, MAP-TH decided to have four of those parts made at
the Head Office in Japan, and the rest made at Plant #2 in Prachinburi.
Then a series of problems arose. First, Plant #2 did not have the parts it
needed to create the manufacturing line for Toyota. It also did not know how
to arrange the air transport from Japan to Thailand of the equipment andmaterials it needed to build the substitute production facilities. To get aroundthese problems, MAP-TH got support from Toyota. It supplied equipment that
it was not using as well as sent about 20 staff members to MAP-TH to handle

80-Year History of Musashi- 86 -

things like production technology, maintenance, and electricity. MAP-TH
initially chartered an airplane for the air transportation of the equipment andmaterials, and then found at airline that could manage the rest to successfullycomplete the needed air transportation. Gear production got underway assoon as the production facilities were ready.
Meanwhile, substitute production in Japan was divided between the
Ueta Plant and the Akemi #1 and #2 plants. An emergency team of 40 to 50
people was assembled by calling in employees from General Affairs Division,
Accounting Division, Production Division, Quality Division, and Production
Technology Division. Production lines that normally take three months tolaunch were set up in three days, and production followed the hard scheduleof 24-hour operations at full capacity for one month.
The parts produced initially did not meet the quality that was needed, with
only 10 to 20 parts satisfying quality standards even though 500 were needed.
The biggest problem was not having taken enough time to fully develop theprocess capacity. A Toyota manager had some strong words for Musashi thatindicated a lack of trust, saying, “This is no way to make a quality product.”
Musashi felt a strong sense of crisis and took the extraordinary move of
calling in section managers from related departments to thoroughly investigate
the causes of the line defects. The processes that lacked clear definition weremade clear, as were the roles and responsibilities of each department.

Meeting customer expectations bycollectively demonstrating abilities
The outcome of this gradually became apparent in the numbers. The numberof high-quality parts produced per day, which initially had numbered in thedozens, increased to 100 and then 200. On December 17, 2011, 30 highly
skilled employees from Thailand were flown in to provide support after the
restoration work at the Thai plant had somewhat abated. Musashi went
about this parts work with focused purpose, and the number of high-quality
parts produced per day increased to more than 2,000. “Meeting customer
expectations.” The goal came about naturally as the employees worked
together. Deep bonds were forged among the employees working in the plant.
They embodied the spirit of Simple and Sturdy and Consistent Sincerity intheir work.
When production was running smoothly, the persons in charge fromMusashi visited Toyota’s Head Office. They were shown to a room where the
Toyota officer who had been in charge of the negotiations with Musashi was
waiting. He expressed his appreciation and gratitude to the representatives
from Musashi, saying, “I was truly impressed by the strength of Musashi.”- 87 -The Toyota line in 2008

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955■ 2011 / Establish MID

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

Part 7 Innovation 2006–2017

To the Future2018‒■ 2013 / Establish MAP-ID Plant #2, Bangalore Plant

Business Expansion in India,
Establishment of the Bangalore Plant

Becoming the No. 1 supplier in India
Strategic sales and purchasing baseIn the Indian market, which continued to show fast-paced growth along with
Southeast Asia, Musashi established MAP-ID in Haryana in 2002. MAP-ID mainly
produced motorcycle and scooter parts and expanded its sales channels from
Honda’s local motorcycle production and sales company HMSI to include
HHML and SMIPL among others.
Anticipating further sales expansion in the massive market surpassing 1.2
billion people, Musashi established Musashi India Pvt. Ltd. (MID) in Gurugram,
Haryana, in December 2011. With MID, Musashi aimed to strengthen its sales
capabilities to capture new business from existing customers as well as develop
Indian suppliers and expand its purchasing function.
It aimed to expand MAP-ID’s sales by ramping up sales activities withthe existing customers Hero (India), SMIPL (Suzuki), and Multi (Suzuki) andconducting activities to get orders from customers like Hyundai, Fiat, Nissan,
and Toyota.
In the purchasing field, the Indian market was still largely an unknown
quantity, with some 5,000 companies alone making motorcycle and automobile
parts. MID aimed to enhance the Musashi Group’s competitiveness by
incorporating inexpensive parts and equipment of the appropriate quality fromthese Indian suppliers into Musashi’s manufacturing lines to maintain low-cost,high-quality manufacturing.

Chronic traffic congestion in India

80-Year History of Musashi

View from a high-rise apartment, with smog obscuring visibility- 88 -

Advanced plant to draw out India’s potential
In June 2013, Musashi established the Bangalore Plant as MAP-ID’s secondbase in Karnataka.
That same month, Honda put a third HMSI plant into operation withproduction capacity of 1.8 million in its initial year. And in 2014, HCIL, its local
automobile production and sales company, planned to put a second plantwith production capacity of 120,000 in its initial year into operation. MAP-ID’s
first base in Haryana would not be able to handle the expanded production
capacity of the plants along with the plans for the new plant to start operations.
India’s motorcycle and scooter market was showing ongoing expansion as
illustrated by Honda’s new plants, and the Bangalore Plant was targeting the
top share in India’s motorcycle market. To achieve this, it set about enhancing
its manufacturing efficiency by raising the overall efficiency of its facilities
as well as process efficiency and increasing the rate of automation. Other
measures to achieve costs that were competitive with Chinese manufacturers
included lowering its cost price using local procurement. The building was
designed with specifications and a layout that factored in future expansion.
Use of natural light and ventilation were also maximized to create anenvironmentally friendly, advanced plant.

Prayers at Bangalore Plant

Bangalore Plant opening

Exterior view of Bangalore Plant- 89 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955■ 2012 / Establish MAP-MX

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989■ 2014 / Establish MAP-NT

Global expansion Innovation

1990‒20052006­­‒2017

To the Future

2018‒Part 7 Innovation 2006–2017■ 2014 / Establish MIZ

Rebuilding a Globally Optimized Production Structure,
New Bases in Mexico and China

Reorganization of the North American structurewith entry into Mexico

Lots of cacti in Mexico

Inside the plant

While the domestic automobile market was shrinking in Japan, the motorcycle
and automobile markets in emerging economies were continuing to expand.
Based on this, Musashi set the Group management policy of becoming a truly
global company in its 11th medium-term management plan established in
2011. Then it established Musashi Auto Parts Mexico, S.A. de C.V. (MAP-MX)
in March 2012 in the Mexican state of San Luis Potosi to strengthen its global
operations to maximize its collective abilities, a priority initiative, and rebuild aglobally optimized production system. MAP-MX started operations in January
2014.
Supplying finished parts from Mexico was intended to deliver transportation
efficiencies to the European and U.S. markets, which before had been
supplied with finished parts mostly from Japan. Mexico offered good access to
the Americas and Europe and was promoting manufacturing exports with free
trade agreements (FTAs) concluded with 46 countries worldwide. Automotive
parts also received preferential tax rates. Mexico was also known for having
a low cost and industrious labor force and good labor–management relations,which created excellent conditions for business.
As part of Musashi’s efforts to rebuild a globally optimized production
system, it reorganized its production structure in North America. MAP-CA
focused on camshafts, while MAP-MI mainly produced differential gears.
Each of them became a supply base for the northern part of North America,and MAP-MX mainly produced ball joints and became a supply base for theAmericas and Europe.

Move to compete in a growth market
Among the world’s automobile markets, China was very attractive. The numberof owned automobiles had already surpassed Japan by 2011 to become theworld’s second-largest market after the United States. Meanwhile, the numberof owned automobiles per 1,000 people was ranked just 118th in the world.
Even so, Chinese automobile production was projected to grow quickly from18 million in 2013 (actual) to 30 million in 2020. China was therefore a big
market for Musashi.
Honda is also planning to sharply increase its production in China tokeep up with rapidly expanding market demand. Taking external sales into
consideration, Musashi established the new company Musashi Auto Parts(Nantong) Co., Ltd. (MAP-NT) in Nantong, Jiangsu Province, in June 2014,
following after MAP-CH established in January 2003. Materials and parts
manufacturers were concentrated in the area around Nantong, making it theideal location to develop the automotive parts business.
Musashi also established Musashi Seimitsu Investment (Zhongshan) Co.,
Ltd. (MIZ) in Guangdong Province in October 2014 as the managing company
for the China business. MIZ aimed to increase operational efficiencies at
MAP-CH and MAP-NT and facilitate relationships with manufacturers.

MAP-NT

Inside the plant

Tree-planting ceremony (Dec. 2015 at MAP-NT)

MAP-MX

80-Year History of Musashi

Group photo during a visit by President Otsuka (Dec. 2015 at MAP-NT)- 90 -- 91 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

Part 7 Innovation 2006–2017

To the Future2018‒■ 2011 / Gain orders for differential assemblies and camshafts for the Honda N-Box

Development of Differential Assemblies,a Global Strategic ProductOngoing development looking to the EV era

Differential assembly (two pinion)

CAE analysis (differential gear)

CAE analysis (differential assembly)

The differential (properly known as the differentialgear) makes driving smoother by absorbing
and regulating the speed difference that arises
between the inside and outside tires when a carturns. Differentials are also called diff gears ordiffs. Differentials separately convey two different
speeds to the tires based on the same engine
power to create a smoother driving experience.
In general, one unit of differential gear is installed
for one set of driving wheels. Musashi has earned
a strong reputation for its high value-added
differentials and peripheral parts that overall are
more compact and lightweight, offering the same
strength with 10 percent lighter weight.

80-Year History of Musashi

The spirit of foundation of Simple and Sturdy and Consistent Sincerity were
the keys to overcoming the Thai floods, along with the corporate mission ofcontinuing to explore and develop original Monozukuri (manufacturing) andprovide attractive products, could also be seen in the field of development at
this time.
In 2012, the differentials that Musashi’s R&D Division had continued todesign and develop since 1999 were adopted in the Honda N-Box.
The R&D Division was established in the 1980s with the two missions ofdeveloping high-performance products that would still be in demand in the EV
era and developing technologies to make products lighter and for less cost.
Differentials were one development target.
Until this time, Musashi had manufactured bevel gears, which areumbrella-shaped gear wheels that function to accelerate, decelerate andchange the direction of the axle’s rotation. Although Musashi conducted
integrated parts production, these differentials were custom parts based on
customer drawings, so sales came to no more than one billion yen. In addition,
Musashi purchased the electrodes for the bevel gear molds from an outside
source, which thus created risk in terms of stable quality and procurement andalso affected sales channel expansion.
Amid these circumstances, Musashi set about fabricating electrodes inhouse and developing original bevel gears and differentials.
In 1999, when in-house electrode fabrication was imminent, Musashi
began development of original bevel gears with higher added value. While
making bevel gear prototypes, by 2001 Musashi had installed facilities toevaluate them, and had set up a system to connect the processes from thecustomer’s proposal through to prototype evaluation. The initial prototypes
demonstrated less than half of the target strength, but through trial and error,
Musashi completed development of MS45 and MS48 bevel gears that were
one size smaller than Gleason differential gears but exhibited equivalent
strength. Musashi then started mass-producing its original bevel gears.
Starting in 2005 when its original bevel gears went into mass-production,
Musashi worked on development of differential assemblies (diff assy), but
customers were resistant to using them, because the differentials did not offera cost advantage nor a substantial performance guarantee. Musashi could
only perform inspections on the bevel gears, which did not create a sufficientquality assurance system.
When the Global Center opened in 2008, it installed a three-axle
dynamometer for testing purposes and ramped up diff assy development.
Around this time, key Musashi customers were switching from automatic(AT) to continuously variable transmissions (CVT) and new transmission
development was in full swing. As part of this, Musashi received two requests
to develop new diff assys.
To create a cost advantage, Musashi started development of MS diffassys that gave the back of the gear a fully spherical shape and used MS- 92 -

bevel gears. Here Musashi needed some time before it could make headway.
It was not able to develop parts that satisfied its customers. While Musashi
did receive some positive feedback for getting the assembly to be 10 percent
lighter than competitor assemblies, many problems including with rigidity andbaking performance also arose and Musashi lost orders. Facing a number ofcomplex issues that appeared to have no solution, the development staff hit a
wall.

Embodying “Be Unique!”with original Musashi products

Diff race line

But Musashi did not give up on its development dream. Instead, Musashi
displayed the spirit of challenge and unity that could rightly be called Musashi
traditions. R&D staff teamed up with the Quality, Production Technology, andMachinery divisions to tackle the problems.
Specifically, they conducted the PDCA cycle on a daily basis from theproduct review to the testing stages. They innovated the equipment mix andfabrication methods to improve quality, resulting in achieving the required
precision down to the micron level (1/1,000th of a millimeter). They worked
to manufacture an in-house inspection machine and create a traceability (lottracing) system and built up expertise in quality assurance.
A number of original standard values were set for such aspects as sideclearance, crimping load, and press fitting load to control finished productquality, and extensive testing was conducted on thousands of mass-produced
parts. Many challenges arose in the fabrication process, and they were solved
one by one through a cycle of trial and error.
Finally, they were able to clear the customer’s evaluation standards andhave their diff assys used in Honda’s N-Box, leading to mass-production of
the part. Since 2013, the differential assemblies have also been used in the
Brio model made exclusively for the Indian market and other models including
the Fit and the Stepwgn. Most models of its key customers use Musashi’s
differential assemblies. The part has also earned positive reviews from global
OEMs and transmission manufacturers to become a hit product with sales of
30 billion yen.
This success is a leading example of the slogan “Be Unique!” thatPresident Hiroshi Otsuka unveiled in his 2008 New Year’s address. Musashi
takes original ideas and gives them actual shape until they become reality.
This gives employees a sense of personal satisfaction and joy and leads
to success for the company. And Musashi gives its full support to this.
Development of differentials is one of the first successes of this process.

Diff race line

Diff assy line

Differential gear exhibit at the Automotive
Engineering Exposition (2012)- 93 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989■ 2016 / Acquire 100 percent of Hay Holding GmbH shares

Global expansion Innovation

1990‒20052006­­‒2017

Part 7 Innovation 2006–2017

To the Future2018‒■ 2016 / Redesign the Hay Group’s logoAcquisition of the Hay GroupStrengthening the business foundationin Europe
Musashi had been contemplating a corporate acquisition since around 2007.
In 2015, a possible contender emerged. It was Hay, a German company thatwas founded in 1925. Hay had Hatebur high-speed forging equipment, whichMusashi did not possess, and was skilled at using it. Hay had been acquiredby a U.S. investment fund in 2012 and had grown into a global company withbases in Germany, Spain, and Hungary. It had also created a forging company
in China in 2015. Another attractive feature was its strong connections to leading
European OEMs including Volkswagen. For Musashi, Hay was just what it had
been looking for: a company that could make the same forged materials, could
increase the added value of Musashi products, and could strengthen Musashi’s
customer base in Europe.
In June 2016, Musashi acquired 100 percent of the shares of Hay Holding
GmbH, the holding company of the Hay Group. With this, Hay’s nine plants infour countries, and their 2,650 employees, became part of the Musashi Group.

Hay’s former logo

New Hay Group logo
The new logo shares the Musashi symbol of thethree rings and the corporate colors to visuallypromote the Hay Group as part of Musashi

Hay Group head office

Joining a corporate group able to compete withthe world’s mega-suppliers

From left, Takayuki Kano assigned to Germany,
Managing Executive Officer Takayuki Miyata, HayGroup CEO Ralph Onken, President and CEO
Hiroshi Otsuka, Hay Group Chairman Bernd Gottschalk,
and Hay Group CFO Norbert Loers

President Hiroshi Otsuka’s speech to Hay
employees at the Bockenau Plant was held at a
town hall in Bockenau, Germany, where some 600
labor union members and employees welcomedMusashi’s ownership

80-Year History of MusashiMusashi has implemented a global strategy following the oil crisis of 1973,
entering the United States after getting business from Ford Motor in 1978.
Musashi then entered other markets outside Japan including Thailand, theUK, Indonesia, and Brazil. When Hiroshi Otsuka became President in 2006,
Musashi had grown into a global company with 14 bases in 10 countries, salesof 120 billion yen, and 8,000 employees.
There was one market, however, that Musashi had not entered deeply but
needed to. It was Europe.
Musashi had conducted sales activities in the European market for morethan 20 years, but Europe represented only 3.4 percent of its sales in 2016.
Europe is home some of the world’s leading carmarkers such as Volkswagen,Daimler, and BMW, but Musashi was having more difficulty growing in Europe
than in other regions.
President Hiroshi Otsuka had spent nine years stationed in Europe, helping
to launch Musashi bases in South Wales, UK in 1993 and in Munich, Germany
in 2001. He was very familiar with the difficulties Musashi faced in entering themarket. Europe had its own legacy technologies and opaque business grouprelationships. These represented major barriers in the European market thatMusashi would have to break down from inside. Musashi decided that the only
way to do this was through M&A.

Column ⓱ Hatebur Forging
Hay has high-speed, horizontal forging machines made by Hatebur. The large,
high-yield machines are capable of producing large volumes of forged parts athigh speed. Hatebur forging uses forging technology able to perform cutting,upsetting, and forming in an integrated manner. Musashi was pursuing integrated
fabrication of all processes, so this was an attractive production technique.

Large forger: Hay Group owns large highspeed, horizontal forging presses of 3,000 to
5,000 tons that are able to perform various
cold, warm, and hot forging

Hay Group’s prestigious equipment andtechnology Ⅲ
Roll forging: Combining the Hatebur forging
equipment with roll forging increases yield andcompetitiveness

Hay Group’s prestigious equipment and technology Ⅰ
High-speed forging (Hatebur forging)- 94 -Hay Group’s prestigious equipment andtechnology Ⅱ- 95 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

Part 7 Innovation 2006–2017

To the Future2018‒■ 2017 / Musashi exhibits at the Frankfurt Motor Show (IAA Cars 2017) together with Hay

Hay’s History and 100 Day Plan Implementation

Global recession hits Hay,
a forming and machining leader

Bockenau Plant at the time of its founding

Founder Johann Hay

Hay was founded in 1925 and was therefore older than Musashi. Johann Hay
had begun the company in a small town 100 kilometers west of Frankfurt,
Germany. Hay mainly developed its business in forming and machining
and grew to have two plants. Hay’s plant footprint eventually became too
small. In 2007 as Hay was considering expanding its plants and bringing in
new equipment, it heard about a forging plant that was up for sale. Leading
Swedish bearing manufacturer SKF was selling off its forging plant. The plant
had eight Hatebur horizontal high-speed forging machines, which Hay wasinterested in.
Hay moved quickly to acquire the plant and established the company
Hay Speed, but the global financial crisis struck the following year in 2008.
Hay was having trouble getting the financing it needed, and in 2009 went
under bank control. It was subsequently sold to a U.S. investment fund andthen became part of the Musashi Group in 2016.
The global financial crisis swallowed up many outstanding companies
and led them to bankruptcy. Hay was a textbook example of one of thesecompanies. Its financial woes were not due to the decline of its technologicalcapabilities and competitiveness. Musashi now had the major challenge of
integrating Hay, and the technological capabilities and spirit of manufacturing it
had fostered, smoothly into the Musashi Group and leveraging its advantages.

On a practical level, Hay’s production lines were improved withinvestments in automation. Hay’s engineers were invited to Musashi to gain adeeper understanding of its product development and technology.
After acquiring Hay, Musashi built connections to the productmanufacturing expected in Europe and aimed to achieve the businessexpansion that it longed for in the European market.
In July 2018, two years after the acquisition, Musashi changed a seriesof trademarks for Hay Holding GmbH and its subsidiaries in the Hay Group,
which received investment from Musashi’s European subsidiaryMusashi Holdings Europe GmbH, to unify the trademarks. This was intended
to increase the presence of the Musashi brand in the global marketplace andstrengthen integration at Hay Group companies.

Implementation of the 100 Day Plan
to integrate Hay

100 Day Plan workshop

80-Year History of Musashi“Strike while the iron is hot.”
After acquiring Hay, Musashi quickly moved to implement the 100 Day
Plan. How should it make the two companies one? What synergies could
be expected? The plan aimed to create discussions about future prospects
and other topics with both sides on equal footing and maximize the effectsof the merger. The discussions deepened understanding of each company’s
approach to work as well as language and cultural differences. Engineers
also held discussions, and a plan was drafted to incorporate Hay’s forging
technology into Musashi products.
Implementing the 100 Day Plan also made the differences in the twocompanies’ cultures apparent. While Musashi had a culture of having
employees propose their ideas spontaneously and express their opinion
without hesitation, Hay used a top-down approach in its operations. The
workplace environment, such as the approach to work and the way of thinking
about work, was different between the two.
To absorb and assimilate the differences in corporate culture, Musashi
held study sessions at Hay to establish the Musashi Philosophy. In 2017,
Musashi set about having Hay management understand the Musashi
Philosophy and attempted to broadly instill the philosophy inside Hay.

- 96 -At Metallumform (currently Musashi Hann. Muenden)

Engineer exchange

Hay plant observation

At Musashi Luechow after brand integration- 97 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

To the Future

2018‒Part 7 Innovation 2006–2017■ 2012 / Musashi’s afforestation activities completed at Aichi Kenmin no Mori (“Aichi Citizens’Park,”Shinjo City ) and begin at
Takashi Ryokuchi Park (Toyohashi City)

Contributions to Sustainability

Social contribution activities aligned with
community needs

Traffic safety activities tied to the local community(KMS)

Off-site lessons and Saturday courses (MSI)

Summer festival (MSI)

Health support program (MAP-IN)

Facilities to provide drinking water for
local residents (MAP-ID)

80-Year History of Musashi

A major role of the Musashi Group in its mission to create value together withsociety is creating functional improvements such as better fuel economy andsafety to contribute to wider motorcycle and automobile safety and security
as well as global sustainability. Musashi believes it has a responsibility
as a company to conduct activities to create a better world together with
employees, customers, business partners, local communities and others who
represent its stakeholders around the world.
As a global company, Musashi believes that it is its responsibility to
conduct ongoing activities aimed at environmental conservation and makingsocial contributions to resolve issues faced by communities and society.
One such activity is promoting traffic safety. KMS (Kumamoto, Japan)
works with a local traffic safety association and elementary schools to give
advice on the streets during the spring and fall designated traffic safety
weeks. The activity aims to raise awareness for traffic safety by ensuring thatelementary students get to and from school safely and reminding drivers of theneed for safe driving. MSI (Toyohashi) has held the Parent and Child Traffic
Safety School for local elementary school children and employee families
since 2014. With cooperation from the local police department, the program
includes reenactments of various traffic accidents to raise awareness forsafety.
Overseas bases also conduct activities to raise awareness for traffic
safety, including a traffic safety campaign at MSB in Brazil and a traffic safety
campaign at MAP-CH during the Lunar New Year in China when people returnen masse to their hometowns.
Next-generation education and local community support contribute toregional development while building friendly relations between Musashi andthe local communities and enhancing understanding for Musashi. MSI goes toneighboring elementary and junior high schools to give lessons and provides
plant tours corresponding to school needs. It also sends instructors to teach
Saturday courses (promoted by the Ministry of Education, Culture, Sports,
Science and Technology) held at public halls in Toyohashi City.
The Musashi Summer Festival has been held on MSI’s head officegrounds since 1993 and has become an annual pastime. The festival includes
stands selling food and drinks, kids’ activities, mochinage (throwing rice cakes
to an assembled crowd), and fireworks. Each year more than 1,500 people
from the community come to the fun and interactive event, which has earned astrong community reputation.
Outside Japan, Musashi Group companies provide various types of support
according to the needs of the communities in which they are based. MAP-IN
in Indonesia provides health checkups and health seminars to residents living
near its plant, especially those who are economically disadvantaged. MAP-ID in
India has installed drinking water facilities for local residents as part of efforts
to improve sanitary conditions. MAP-VN in Vietnam provides support to local
communities in various ways, including offering funding to a school so that the- 98 -

school can offer scholarships to students from low-income families, and giving
financial support to people in need and disabled veterans.
Other support includes opening the plant for a half day to the familiesof employees at MAP-TH in Thailand, participation in a charity run andcommunity donations at MAP-MX in Mexico, and donating funds for a parkwith a fountain at MAP-CA in Canada.

Contributions to global environmental
conservation

Donation to a community park with a fountain(MAP-CA)As a corporate citizen of the global society, Musashi makes efforts to conserve
the global environment through its business activities and environmental
conservation activities.
In its business activities, Musashi has established a system led by theCentral Environment Committee to reduce its environmental impacts fromboth its products and production activities for the purpose of developing
environmental management companywide. For example, production
activities at each base are founded on principles conforming to ISO 14001
to advance global environmental management. Musashi also seeks to shareand implement technology related to reducing environmental impacts andconserving energy.
In its environmental conservation activities, Musashi aims to raise
environmental awareness among employees and their families and contributeto environmental conservation by holding a range of events together with local
communities.
The Musashi Environment Creation project is one such activity. As part ofthis project, Musashi conducts cleanups to aid conservation of the Shiokawa
Higata tideflats in Mikawa Bay, which straddles Toyohashi and Tahara in
Aichi Prefecture. The cleanups allow participants to observe the plants andcreatures that live in the tideflats and learn about the biodiversity of the area
while being out in nature. The cleanups are held in early summer when crabs
and other wildlife indigenous to the area are active. About 140 employees andtheir families participated in the cleanup held in 2017. The smiles and delightof children participating in the cleanup were featured in news stories publishedin the Higashiaichi Shimbun newspaper and the official website of Toyohashi
City and received many positive responses.
Other activities in the project include maintaining green spaces inparks and cities, forest conservation, seashore conservation and sea turtle
observation, river conversation (cleanups of the Umeda River), wetland
conservation of the Imo Bog, and greening activities around Musashi plants.
In 2018, Musashi received a letter of appreciation from Toyohashi City for
its environmental conservation activities.

Musashi Environment Creation (MSI)

Participating employees and their families (MSI)

Receiving a letter of appreciation from
Toyohashi City

- 99 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

Part 7 Innovation 2006–2017

To the Future2018‒■ 2016 / Changed name to Musashi Harvest Co., Ltd.

Musashi Harvest Supports the Musashi GroupNew start providing employee benefits for
the Musashi Group
Musashi Harvest Co., Ltd. is the company that provides employee benefits
for the Musashi Group. Its establishment goes back to August 1968. It began
by becoming independent from Musashi’s Transportation Division as theMusashi Packaging and Transportation Company. It started out with capital of
2.5 million yen and a fleet of six vehicles. Besides the transportation business,initially its main business activities were providing services such as property
insurance agency services. Noboru Yanuki was appointed its first President.
Meanwhile, Musashi Development Co., Ltd. was established in October
1972 for the purpose of providing some Musashi Group benefits such as
plant dining hall services, dormitory management services, and land andbuilding intermediary services. It had capital of 10 million yen, and President
Yoshiharu Otsuka was named its Representative Director. Provision of foodservice for employees began in January 1976 at Musashi worksites. In 1981,
it constructed a 48-unit condominium building in Nakano-cho, Toyohashi City,
in a business alliance with Ohkuraya Architecture Design Co., Ltd. It begancondominium sales the next year and sold all the units. Then in October 1987,
Harvest Life Co., Ltd. was established to provide travel agency services,
ceremony-related services, condominium and dormitory services, leisurefacility operations and management services, and real estate-related services,among others. It had capital of 10 million. Masaaki Otsuka was appointed its
first Representative Director. The next year in March 1988, Musashi Harvest Life

Stand at the 2017 Musashi summer festival

Running in the Honokuni Toyohashi
Half Marathon

Filming the One Musashi dance

received the rights to operate sales kiosks from Musashi Development andbegan these operations at Musashi in April. In 1989, it began a café businesswith the Green Garden (Ueta) and Marine Blue (Akemi) cafés.
In 1996, Musashi Packaging and Transportation merged withMusashi Development and Harvest Life and began food service, sales kiosk,
and travel agency services. By 2015, it had withdrawn from the transportation
business and begun dormitory operations and contracted landscaping andcleaning services.
It began contracted receptacle cleaning and a temporary labor staffing
business in 2015. That same year, the company name was changed toMusashi Harvest Co., Ltd. to align with the changes in its business operations.
The company focused exclusively on food service and sales kiosk operations,dormitory management, cleaning and landscaping activities, and insurance
and travel services for Musashi.

50 years of supporting the Musashi Group

Ceremony unveiling the new company name in2016

Kitchen at the Ueta dining hall
(Food Service Division)

Sales kiosk at the Ueta dining hall
(Store Division)

Safety and health training

Food service members at the Ueta dining hall

Salespersons at Musashi Harvest

80-Year History of Musashi- 100 -The predecessor of Musashi Harvest was the Takeyukai (Musashi Friendship
Association).
The Takeyukai was formed in 1967 as the division providing benefits to allMusashi employees for the purpose of planning and implementing recreationaland cultural activities. Japan was in the middle of a period of rapid economic
growth at the time, and companies had started focusing on providing
employee benefits.
The Takeyukai set up committees for general affairs, the economy,recreation, sports, and culture. One business contracted operations of store
kiosks and group purchasing. This division was later taken over by Musashi
Development.
After 50 years since its founding, Musashi Harvest has returned home.
Together with Musashi, Musashi Harvest intends to support the Musashi
Group by offering reassuring, safe, and pleasant services with a smile for
employees and their families.

- 101 -

80-Year History of Musashi

■ The Story of Musashi Motorsports Ⅰ■

Sponsor Agreement with
the Motorcycle Racing Team HARC-PRO.

HARC-PRO. signing ceremony

2010 Suzuka 8 Hours Endurance World Championship

Instilling Motorsport Culture in MusashiMusashi has actively participated in motorsports toenhance its technological capabilities and as a way toparticipate in society.
After providing gears for Honda’s plant team racing
machines in 2007, the following year on June 1, Musashi
concluded a plant team sponsor agreement for FY 2008
with Honda Racing Corporation (HRC). The racing
motorcycles used Kyushu Musashi Seimitsu transmissions,and Musashi’s logo was prominently displayed on the
racing machines, the team track, equipment in theteam pit, and on a large poster made by HRC for the

80-Year History of Musashi

Suzuka 8 Hours Endurance World Championship.
In October 2008, Musashi became the main sponsorof the HARC-PRO. racing team, which used Honda racing
machines. HARC-PRO. was established in 1984 and has
participated in the All Japan Road Race Championshipsince 1989 as a consistently top-ranked team. Before
concluding the agreement, HARC-PRO. had won the
All Japan Road Race Championship nine times, theST600 class four times in a row, and had been on the
Suzuka 8 Hours Endurance Race winner’s podium on
multiple occasions.
In December 2008, the MuSASHi RT HARC-PRO.
team was unveiled to the press at a hotel in Tokyo.The
following year, it was announced that the team would enter- 102 -

2013–2014 Suzuka 8 Hours Endurance World Championshipthe Suzuka 8 Hours Endurance Race and the All Japan
Road Race Championship. Musashi’s motorsports website
was also launched at the same time. As the main sponsor
of HARC-PRO., the Musashi brand has become more
widely known to the general public.

First Win at the Suzuka 8 Hours Endurance Race
The 32nd edition of the Suzuka 8 Hours Endurance Racebegan in July 2009. The MuSASHi RT HARC-PRO.
team advanced from the qualifying round as expected,
posting its best team time and ranked in second place.
But the team met with heavy rain and experienced
accidents including falls to finish in 43rd place at its firstSuzuka 8 Hours Endurance Race.
The team started out in fourth place in its second
attempt at the 33rd edition of the race in July 2010. With
numerous crashes and falls on the track, whose surface
temperature exceeded 60 degrees Celsius, starting rider
Takumi Takahashi moved the team up to second place andthen second rider Ryuichi Kiyonari moved into first placeon the 28th lap. While he fell to second place at times in
the pit, he was the lead rider to beat for the rest of the race.
The MuSASHi RT HARC-PRO. team finally had a longawaited victory at the Suzuka 8 Hours Endurance Race.
The team went on to win the race again in 2013 and 2014.
The MuSASHi RT HARC-PRO. team had become an
undeniable force at the Suzuka 8 Hours Endurance Race.

- 103 -

80-Year History of Musashi

■ The Story of Musashi Motorsports Ⅱ■

Entering the Suzuka 8 Hours Endurance World Championshipand Developing the Next Generation of Riders

2015–2016 Suzuka 8 Hours Endurance World Championship2017–2018 Suzuka 8 Hours Endurance World ChampionshipGroup-wide Support for
the Suzuka 8 Hours Endurance World Championship
Two years after the team’s win in 2010, the Musashi
employee fan club was in the stands cheering for theteam to win at the 2012 Suzuka 8 Hours Endurance
Race. Five hours after the final race had started,
MuSASHi RT HARC-PRO. made its move after battling forthe top position. But as rider Kiyonari came out of the pit
and back on the track, he fell coming out of the first DegnerCurve. His racing machine was in flames. The cheers
from the Musashi employee fan club turned to screams.
Everyone’s hearts raced as they watched the big screen,where rider Kiyonari, in his charred racing suit, could be

80-Year History of Musashi

seen pushing his burned motorcycle back to the pit.
The team was told to return to the pit over thewireless radio. A total of 20 crew members had the spareparts ready and were waiting to get to work. President
Hiroshi Otsuka rushed over to watch as the team repaired
the racing machine in an hour. Seeing the racing machine
miraculously return to the course, the pit crew, the Musashi
employee fan club, and general spectators broke out in a
big round of applause and cheers.
There were 180 people in the Musashi employee fanclub at the time. In 2008, Musashi started partnering withfan bus tour organized by the Honda Satsuki Association
to send supporters to the race venue. The companywide
event had become a summer tradition at Musashi.

- 104 -In 2014, a record-high 253 people participated as
spectators, and this is when the fans starting waving a
big flag during the race. In 2015, the supporters watchingfrom the stands numbered 270 including the fan club from
Toyohashi City. Motorsports had gradually become a partof Musashi’s culture.

Developing the Next Generation of Riders
Beyond providing gears and transmissions andsponsorship agreements, Musashi started the Musashi
Scholarship in 2014 as a way to contribute to the worldof sports in a broader sense. The scholarship program ismainly led by HARC-PRO. for the purpose of developing

elite riders with the power to bring more excitement to theworld of motorsports with their amazing performances.
With world-class instructors providing one-on-one support,
the scholarship program is already producing impressive
results.
One scholarship recipient won a series title in 2016.
For example, Teppei Nagoe was part of the first round of
the scholarship program and won the 2016 All Japan Road
Race Championship in the ST600 class and was ranked
third. The program has produced several other promising
young riders including Yuki Kunii and Ryusei Yamanaka,
who have competed in the Asia Talent Cup (ATC).

- 105 -

80-Year History of Musashi

Foundation

1938‒1945

Reconstruction

1946‒1955

Turning Point

1956‒1960

GrowthExpansion

1961‒19751976‒1989

Global expansion Innovation

1990‒20052006­­‒2017

To the Future

2018‒Part 8 To the Future
A number of near-future projects to realize dreams are moving
forward, such as flying cars and space elevators. A numberof near-future projects to realize dreams are moving forward,
such as flying cars and space elevators. Mixed reality (MR)technology holds great promise to increase production floor
efficiency in the automotive industry.
Musashi is also making moves for the future. A production
system incorporating AI is fast approaching realization.
Musashi has also started projects offering support for
agriculture and childrearing, which are areas of concern inJapan’s super-aging society. Initiatives also begin to addresssocial issues by employing technology and going beyond theframework of existing businesses.

80-Year History of Musashi- 106 -

- 107 -

Initiatives for the FuturePart 8 To the Future 2018–

In April 2018, Musashi celebrated its 80th anniversary and marked a new start aimed at the future. It is ramping up a
number of future-focused initiatives kicking off with the anniversary party.
The company entrance and dining hall have been remodeled to better communicate how Musashi’s is greatboth inside and outside the company. The Musashi Innovation Lab opened in front of Toyohashi Station. Musashi
is creating an environment aiming to generate community-based innovation. It is also going after new businesscreation, looking to create business from ideas generated in the AI Project and at Musashi Innovator’s Gate 2017.
The Machinery Division has begun expanding business led by the machinery-purpose Akemi Plant, and has
begun operations at the Shin-Minami Plant at Ueta, which produces key components for electrified vehicles. The
new Musashi Europe was established in July, and brand integration is speeding up in the European region. Musashi
has decided to build new plants in India and China, where further market growth is expected.

Honda NSX models added
as company vehicles

80th One Musashi Festa⇒ Executive Committee member comments (p. 119–121)

To the Future

Comprehensive cooperation with
Toyohashi University of Technology

Musashi Innovation Lab opens

Remodeled office and dining hall at Ueta Plant

2018–

Shin-Minami Plant, Ueta Plant begins operations

Division website launched to strengthen outside sales
Initiatives to create new business⇒ New project sites (pp. 110–117)
Honda President Takahiro Hachigo visitsMusashi
New Machinery Division plant (Akemi)

80-Year History of Musashi- 108 -⇒ Special discussion with youngMusashi employees (p. 123)

MAP-ID Plant #3 (Bawal)
MAP-NT plant expansion- 109 -

80-Year History of MusashiPart 8 To the Future 2018–
AI Project

A Look at New Projects Ⅰ

AI Project (Sota Murata, Keisuke Fujita, Fumihisa Kamiya, Satoshi Miura, Arman
Muhammad Chowdhury)

Innovate Production Floors with Monozukuri × AI!
We are finally seeing internet-driven economic andsocial development as well as globalization takeshape, and the artificial intelligence (AI) function ofdeep learning is receiving a lot of attention as thenext broadly impactful technology. Deep learning istechnology that allows computers to independently
learn from data characteristics. It is expected to be ameans of achieving decisions by machine that would
normally require human perception and judgment.

Musashi started an AI project in January 2017.
Led by the President, the project assembled
employees with shared interest in AI. People took
part in project discussions without regard to age,company position, or department, which concluded
with a decision on the area to pursue. It was tointegrate AI into the inspection process.

The AI Project started with an eye to Musashi’s future
Initially, a dozen or so people fromdepartments such as facilities and IT
worked on the project in addition totheir regular jobs, but in June 2017
researchers with knowledge of deeplearning fundamentals began leading
work on the project.
M u r a t a : Visual inspections in the
manufacturing industry have always
relied on people to perform them, and theneeds for automation had grown. So we
partnered with Abeja, a venture company

with experience in the image analysis anddeep learning technology we needed,aiming to automate the inspection
process. We set our sights on the bevel
gear inspection process and conducteddesk tests from June to October for
performing automated inspection offinished products. Once we were able
to see some results, we leveraged
Musashi’s capabilities to create our own
inspection equipment in cooperation withfacility engineers and others.

The AI Project started in January 2018with the three full-time project members
Sota Murata, Fumihisa Kamiya, andKeisuke Fujita.
Murata: Fujita and Kamiya collected
and prepared the data we neededfor deep learning, processed it,
and then applied AI with the goal ofachieving precision that could be usedin operations. Then in April 2018,
Satoshi Miura joined the project to write
the code to connect the equipment
and operate it smoothly. I started out
as a facilities engineer, and my role

At work

is to integrate the software and the
hardware built by those three and keep
the project as a whole moving forward.
Fujita: Currently, I’m working on
creating AI able to perform visualinspections of bevel gears at Musashi.
The standard for visual inspections is
ensuring that there are no scratches
or dents. Up to now, this depended
on a worker’s visual perception, butthere were no clear standards. We
aimed to create AI that had the samevisual perception as a worker andcould perform under the challenging
conditions presented by gears, suchas accounting for the difference indistance between the tip and base of
the gear teeth and visual variations
caused by lighting.

Kamiya: Specifically, this involved
creating an optimal environment for
automated inspections inside Musashi
and then obtaining the image data.
We repeated the process of having AI
study the data and confirming its levelof precision. We needed to increase
the level of precision to where it could
be put into practical use. We collected
86,000 images to use as data overthree to four months after the project
started up in January. We checked
every single image and labeled thelocation of the flaw according to its
type. There was a lot of manual workat the beginning. It’s much easier now
that this has been automated. Creating
the equipment ourselves is a Musashi
strength, because we can automate
different parts like this where we see
fit.
Miura: I put the deep learning that
Fujita and Kamiya are involved in—theso-called brains—into the production
equipment and connected it withthe line. The line consists of robots,
conveyor belts, and lots of other parts.
I always have to keep an image ofthe entire system in my mind to figureout how the different parts should go
together. And we were making thesystem from scratch, so there wasnothing to work from. I was really lostat first. But it helped that we were
working inside Musashi, because I wasable to collaborate with the facilities
staff over things big and small, and thiskept the project moving along without
losing time.
Murata: Around March development
shifted into high gear. Specifically, wewere aiming to create an inspection
cycle achieving the same level ofprecision as visual inspection by aperson in two seconds per automotive
gear without stopping the production
line. At present, we’ve managed toreach the standard value for precision
on paper but not yet our target valueon the production floor. There are a
lot of different AI algorithms, and themany ways you put them together iskey. Our challenge in the near term istrying out these different algorithms
and ways to combine them one by one
while getting closer to the target value.

Announcing their results at the Six 2018 AI conference

80-Year History of Musashi- 110 -

- 111 -

80-Year History of MusashiPart 8 To the Future 2018–
AI ProjectMusashi displays strengths at the Artificial Intelligence
Exhibition and Conference
The second Artificial Intelligence
Exhibition and Conference was heldat the Tokyo Big Sight convention
center over three days starting April 4,
2018. Musashi gave presentations anddemonstrations at its booth.
Murata: It was only the second editionof the AI exhibition, and many ofthe participating companies werestartups. A lot of companies just usedpanels to introduce their systems, butMusashi conducted demonstrations
with real equipment. We also gave atechnical presentation on the themeof “Automating Inspections Using
AI Eyes,” which received positive

Musashi’s booth

Sota Murata(joined Musashi in 2006)[Previous department: Machinery
Section, Machinery Group,
Machinery Division]
Carrying on Musashi’s tradition of
next-generation innovation andadding to our successes

80-Year History of Musashi

feedback for being easy to understand.
Fujita: We heard from people who
worked for auto parts manufacturersof course, but also from people who
worked in different fields and were
intrigued by the possibilities, such as
pharmaceuticals and food productmanufacturers. This made me see
again how integrated production
was a Musashi strength, which wassomething that I had just taken
for granted before. Even if otherparticipating startups could explain
their ideas using words and system
diagrams, it’s not easy to actually makea system and show it to people.

courage to take a step forward.
AI is still an undeveloped area,and many companies and researchers
are competing to make technologicalinnovations. In the automotive industry
especially, the precision demanded bycustomers is very high and you have

Murata: While we’re working in the
cutting-edge field of AI, it’s a Musashi
tradition to sprint ahead when thetime comes. When I’m stuck onsomething, I recall the lessons ofour predecessors, who said things
like “There is no tomorrow without
technological innovation,” and “Build
up daily innovations.” They give me theMusashi’s booth filled with visitors

Keisuke Fujita(joined Musashi in 2016)[Previous department: Technology
Development Group, R&D Division]
Becoming an engineer who createsvalue even when AI is everywhere in
the world- 112 -

to make your products one hundred
percent safe. I’m confident that we willfind success if we tackle this projectwith Musashi’s long-held spirit ofmanufacturing, a sense of speed, andcompanywide effort.

The future of the AI Project, and the future of Musashi
The Japanese economy is facing
problems today, including the aging of
its workforce and the resulting labor
shortage, so creating higher efficiency
with AI is a promising solution. The
areas where AI is expected to playa role are tasks that rely on humansenses.
By having AI perform these tasks,
people can be put to work in other new
areas. This holds the power to lower
costs and speed up new innovation.
Murata: We’ve been automating
our production lines at Musashi,
but inspections have not yet been
sufficiently automated. The inhouse inspection process accounts
for approximately 20 percent of allinspection process at all of our basesaround the world, this would make ouroperations much more efficient andcould stably and sustainably reduce
inspection mistakes. It is also possible
to use the AI technology we havedeveloped in other businesses andfields.
Fujita: At manufacturing sites, there
is potential for using time series forvibration, noise, and other data in
addition to images. In the future if the
AI Project becomes an independent
business, it could grow quite large
by entering fields like medicine anddeveloping technologies in areas
where AI replaces human perception.
K a m i y a : Currently, Musashi is aprocesses. If AI could replace thiscompany based on selling manufactured

Fumihisa Kamiya(joined Musashi in 2016)[Previous department: Technology
Development Group, R&D Division]
Creating a home where laughter
abounds. Plus ultra!!

Satoshi Miura(joined Musashi in 2017)[Previous department: Machinery
Section, Machinery Group, Machinery
Division]Enter FISM!

- 113 -

goods, but there is something thatpeople always said when I was working
in development. They said that key
products Musashi makes may no longer
be needed when the markets shift toEVs, for example. So we have to takeaction now with an eye to the future.
While I work to make a business out ofapplying AI, my bigger goal is to create
new value that takes the place of goods.
Miura: I have the feeling that what
we’re working on now will be obsolete
technology 20 years from now. Insteadof letting our AI technology get out of
date, I want to develop it into legacy
technology in the industry, where
people may still turn to Musashi’s AI
systems even if they are a little old.
Murata: The goal of AI is to have it
work for people after all, and not totake work away from people. For
example, if there’s a labor shortage, AI
can be used to supplement the labor
force. Having people focus on thework that needs to be done by people
will benefit the economy and society.
A major goal of our AI Project is topresent new values.

Arman Muhammad Chowdhury(joined Musashi in 2018)[Assigned in July 2018]
Bringing smiles to people throughinnovation

80-Year History of MusashiPart 8 To the Future 2018–
AgriTrio

A Look at New Projects Ⅱ

Musashi Innovator's Gate 2017 AgriTrio (Hiroyuki Ishikawa, Yuta Kobayashi)

Know-How Service to Alleviate the Labor Shortagein the Agricultural Industry
Japan’s falling birth rate is having a major impact
on its agricultural industry. A raft of problems need
to be overcome to preserve Japan’s food system,
including a declining number of people engagedin farming, no successors at many farms, and thelack of international competitiveness.
AgriTrio is developing a new business toaddress these problems based on providing muchneeded labor power.
The business uses the strengths of the
manufacturing industry to create manuals for work
processes and help lower the barriers between
farmers and job seekers. Using the know-how it
has built up, Musashi aims to connect people andcontribute to Japan’s agricultural industry.

team as you launched the business toconnect farmers and people?
Ishikawa: I was the coordinator. I put
together the information we collected,
and I went out to farms and met
with people involved in farming tocollect information. I also met withrepresentatives from the Chamberof Commerce and Industry and themunicipal assembly as well as National
Diet members to explain the objectivesof Know-How and our future businessplan and ask for their understanding
and cooperation.
Kobayashi: I worked closely with
farmers to create the manuals, in partby actually doing the work. I usedphotos and video to show how to do
the work so even beginners would
understand. The manuals use plain
language to explain the instructions
from the farmers, and then I had users
actually use the manuals and do thework, revising the manuals as needed.
This went on for many days.

Ishikawa: I also do advertising and PR
activities. I plan and hold farm work
experience events that allow people
to have fun while also learning about
the Know-How service. Basically,by helping deepen communication
between people, we also get to hear
their true feelings, and this allows us
to put more detail into the manuals.
If people enjoy their experience, they
may put it on social media or spreadthe word about Know-How in otherways. The key is how much you canengage people in what you’re doing.

Holding an event

Aiming for the world with the spirit of “Be Unique!”
Saving farmers, turning aspirations into business
The three employees who signed up
to join the new business project first
aimed to created a welfare-related
business.
Ishikawa: When we were thinking
about creating a business offeringsocial welfare services, we looked at
how to break away from non-profit-type
activities and differentiate ourselvesfrom welfare service businesses thatwere already established. Was there
a business that was truly needed?
We couldn’t find an answer. Then wethought about Toyohashi City, where
Musashi started out, and what kindof city it is. We decided that it was
founded on cars and farming.
Kobayashi : Some employees camefrom farming families, and they expect
to take over the family farm at some

80-Year History of Musashi

point. But their families have opposed
this on the grounds that farming is
physically tough. When you look at
farming today, many farmers are
getting older and there are fewer
people taking over farms. So we dida study to find out what situation
Toyohashi’s farmers were in.
Ishikawa: Many of the people whoare still working are in their 70s and80s. Even though they have backpain, they can’t take time off during
the busy season. Even if they would
like to hire people for paid temporary
work, they can’t find the people. And
if they use a temporary employment
agency, they only send people out.
These people then have to be taught
everything starting from step one. This
is inefficient and sometimes problems- 114 -

can arise too. Considering thesituation, we thought we could createa business by providing a solution forthese issues.
Kobayashi: And we simply wanted tohelp save farmers. This is how our
Know-How service was created.
Ishikawa: We wanted to match
farmers who need farm hands during
the busy harvest time with students
and homemakers who want to workin their spare time. We would do thisby mobilizing Musashi’s expertise to
create manuals explaining simple farmtasks. People can read through themanuals before doing the work, whichmakes it easier when they go to thefarm for the first time. This is the kind ofsystem we wanted to make. Lowering
the barriers for farmers and workers
would increase farm continuity.
How did you divide your roles in the

Individually, what are your future plans
and ambitions?
Ishikawa: Going forward, the challenge

for me is creating a service that will
make both the farmers and the workers
happy, and creating a system that will

Hiroyuki Ishikawa (joined Musashi in 2001)[Previous department: Cost Management Group,
Accounting Division]
Now I am working on regional revitalization in the
agricultural field, but I would like keep launching new
businesses outside of agriculture too and develop
innovators globally

Out at a farmearn revenue from matching fees andplatform usage fees. We need to build
a lot of detail into the system, such as
wage settings, attracting workers, andcreating operational manuals. In the
future, I would like to use Musashi’s
AI technology and machinery androbots to make Japanese farms more
efficient.
Kobayashi: Musashi fabricated andrepaired agricultural machinery at one
time. Then we entered the motorcycle
and automobile markets and createda lot of employment in our local area.
The farmers that I visited also felt acloseness with Musashi and treatedus with goodwill. I would like to makeKnow-How a business that revitalizes
farming and brings happiness certainly
to our hometown of Toyohashi but also
to Japan and then can grow into a
global network.
Ishikawa: I would like to tackle
challenges that Japan faces andexpand the business so that one day
it can make contributions to resolvingsocial issues on a global scale.

Yuta Kobayashi (joined Musashi in 2007)[Previous department: Prototype Section,
Prototype Group, Machinery Division]
I would like to be able to do things with people
who are interested in the things I want to do then

- 115 -

80-Year History of MusashiPart 8 To the Future 2018–
wkwk Co., Ltd.

A Look at New Projects Ⅲ

Musashi Innovator’s Gate 2017 wkwk Co., Ltd.
(Yoichi Yanase, Atsushi Tsuzuki, Sachiyo Tamaya)

Turning Nuclear Family Child-rearing into a Company!
This new business project at Musashi aims tocreate completely new business not tethered toMusashi’s existing business and develop people who
spark innovation. Yoichi Yanase, Atsushi Tsuzuki,
Sachiyo Tamaya took their project’s positive evaluations
and set their sights on Tokyo. Their mission was to go
to Tokyo and turn their business ideas into something
real. In a place far from Musashi, they built their planfrom scratch and started the business.

What would they discover as they exploredthis new territory, how would they connect thatto a business, and what profit would this create?
For these three sent off to Tokyo, it was a big
challenge.
All they had were their ideas generated in the
project and their determination. As of September
2018, they are still fighting to create a business fromtheir own ideas.

In a brand-new situation, business clues were found nearby
As they talked in the company wkwk, they
included the keyword child-rearing in theirbusiness plan. They have been working
exclusively on this project in Tokyo sinceApril 2018.
Yanase: If we were to start a businessin Tokyo... As a result of conducting
market research on businesses likesports gyms and services for seniorcitizens, we thought that starting abusiness related to child-rearing would
be good. I also have children, and I
would often have conflicts with my wife
over something about raising them.

Looking into this area, we learned
that many couples who are blessedwith children nevertheless experiencefriction over problems related to raisingthem.
Tsuzuki: Something the three of us
talked about a lot was how to improvefamily relationships. With nuclear
families increasingly the norm inJapan, people don’t necessarily havesomeone they can turn to even whenvarious problems arise from caring forparents or children. So we decided tooffer a service that helped shift family

relationships in a positive direction.
Tamaya: We named our company
wkwk Co., Ltd. with the goal of offering
services that brought excitement tofamilies’ everyday lives, especiallythose of young couples raisingc h i l d r e n . We n a m e d o u r s e r v i c e

Yoichi Yanase (joined Musashi in 2011)[ Pr e v i o u s d e p artment: T echnology
Development Group, R&D Division]
I want to make Musashi a company that
continuously delivers new value to people
worldwide

Sachiyo Tamaya (joined Musashi in 2017)[P reviou s d e p a r t m e n t : Te c h n o l o g y
Evaluation Group, R&D Division]
I want to have fun both at work and raising
my kids and keep taking on challenges asa mom and an employee!

Atsushi Tsuzuki (joined Musashi in 2012)[Previous department: Sustainability
Promotion Department]
I want to continue doing work that touches
people’s hearts and makes them feel
fulfilled!

80-Year History of Musashi- 116 -

MeetingBabying and started activities looking
to commercialize it.
What makes Babying different fromexisting child care services? What are
the features of Babying?
Yanase: Unlike babysitters, what
we handle is problems of the heart.
We f o c u s e d o n t h e m i s m a t c h i ncommunication that forms between acouple when they first have a child.
When a couple marries and has ababy, it creates new relationships
and responsibilities among the threeparties. For example, a new father may
try to help out by washing the dishes orchanging the baby’s diaper and expect
to get praise. But what the motherwants is someone to talk to about her
day and share in all the things thatshe’s experiencing. This mismatchin communication causes stress athome and widens the gulf between the
couple.
Tsuzuki: So we keep searching for theanswer to what is at the heart of themismatch. We conducted interviews
and did research to obtain a number ofsample responses.
Tamaya: At first we didn’t even know
who to ask questions to or what toask. We tried talking to people in parks
in Tokyo, but they were guarded andwe were told that we needed to get
permission from the park attendants
first. Nevertheless, we gradually built
up scenarios that were useful to our
project. When we heard that men
taking child-caring leave were given
frosty receptions at work and had
a difficult time, we decided that we
wanted to do something to help them.

Our goal is to surpass Musashi’s market capitalization!
To resolve communication rifts between
couples raising children, we needed tohave a wide range of knowledge andexpertise as we worked on developing
a service using IT-driven tools toimprove couples’ communication.
Tamaya: Now we are holding sessions
where we talk with couples and arelearning about psychology to besensitive to participants’ feelings andexperiences. We may need to provide
emotional support at a critical time.
Yanase: Living as a nuclear family
without parents or relatives nearby
to rely on is a common trait amongcommunication tools people use tointeract with the outside world, but wewant to make a tool needed on a more
personal and intimate level. We’re
told by Musashi to surpass its market
capitalization, and that’s exactly what
we want to do.
Tamaya: I want to grow our company
to surpass Musashi’s market
capitalization and have Musashi
recognized as the family services
company.
Tsuzuki: For better or worse, Musashi
is a company that entrusts its people
to do things. When I set out for Tokyo,
my boss told me to “Go and dosomething interesting.” My workplaceat Musashi has a cheerful and familylike atmosphere, and it feels reallyworthwhile to be able to work on thisnew business within this company
culture.
I have more opportunities now tomeet with engineers doing researchon cutting-edge IT and have learned
how an AI engine can create various
services from infinite options. The
question is how to use this in theservices we offer. Just thinking about it
is exciting.

Informal meeting

married couples in the Tokyo area. We
focused on this as well. Babying steps
in for parents and relatives to support
these couples to resolve their worries
and problems. Today there are many

- 117 -

80-Year History of Musashi

80th One Musashi Festa[Date] April 7, 2018—Strengthening ties, taking pride, looking to the future—[Venue] Holiday Hall, Loisir Hotel

3:30 p.m.
Venue open
- Exhibit corner

5:00 p.m.
Opening- Light mappingshow- Remarks by
the President- Toast- MealPresident Hiroshi Otsuka

Director Takayuki Miyata

Let’s keep Musashi loved by everyone!

One Musashi is the best!

Allow me to express my deep
appreciation to the more than
1,000 Musashi employees fromJapan and overseas, our retired
members, and everyone’s families
for coming our 80th anniversarycelebration.
It is thanks to your cooperationthat this event has been such a
success and worthy of the concept“Legacy of the Past, Vision of the
Future.” Thank you very much.
We will continue striving to be acompany loved by many.

I would like to express
my heartfelt appreciation
to all of our members
from overseas and to themembers of the Executive
Committee for holding this
80th anniversary event.
I am so happy that
we have been able toshare this amazing time
together with our Musashi
friends and colleagues andexperience firsthand whatmakes Musashi what it is.
“One Musashi” is the best!

Kenji Morisaki
Committee Supervision
80th Anniversary Executive

6:10 p.m.
Embody Musashi! For the next 10 years!

Entertainment

This event was made possible by the many people who lent their support from the preparation stage
to the actual day so that Musashi’s 80th anniversary would truly be something to remember. There
were times during this process when people clashed over their opinions, and there were difficulties
in getting a large group to make one thing together, but bringing in a diverse range of viewpoints
and ideas allowed us to create an amazing event that we did not even imagine when we started thisproject.
I think we have widened our circle of friends and become stronger through this event. I’m gladthat I’ve been able to make great memories with these friends and that the 80th anniversary wassuch an impressive event.
Being able to share in making something together is a wonderful thing, but it’s not easy. While
this is true, it is possible because of Musashi, and I think what we created also embodies Musashi. I
hope to pass this on to the next committee members.

- One Musashi
Dance- Announce
commemorative
merchandise- Raffle

One Musashi Dance
Choreography : Lucky Ikeda

7:45 p.m.

Naoya Nishimura
Committee Chair
80th Anniversary Executive

Hiroyuki Mori
Committee Deputy Chair
80th Anniversary Executive

Stationery sommelier

Misato Kan

Senior Executive Officer
Kenji Morisaki

Ending- Musashi song
- Closing remarks- 119 -MUSASHI 80 周年史

80th One Musashi Festa—Strengthening ties, taking pride, looking to the future—

Staging: Kinya Kawano

Exhibits: Takuya Fujiwara

Dance: Junichi Kawabe

Dance: Takashi Tanaka

We wanted to surprise and delight theaudience by bringing together an exciting
mix of light and sound in the projection
mapping and giving President Otsuka
an impressive stage entrance. Even
though we had a hard time figuring out
how to express our vision of our respect
for Musashi’s 80 years of history and the
One Musashi vision for the future, I thinkwe were able to capture the attention of
the large audience on the main stage
and create something unforgettable. I
am convinced that this success was theresult of the circle of friendship that webuilt transcending the borders of ourworkplaces.
I would like to continue communicating
the Musashi Philosophy that lives inMusashi’s history and in the achievementsof our predecessors to the next generation.

I especially focused on the entrance
gate because it can influence the overall
impression of the event. I tried to createa cool and impressive entrance. The“Musashigram” frames included Musashi
products colorfully arranged on them toencourage posts on Instagram.
We worked really hard on the design
plan to make something that would
capture guests’ interest regardless of theirage, gender, or ethnicity. I felt really happy
when I saw so many people having fun andtaking photos using the frames on the dayof the event. Displaying all of the previous
newsletter covers was a big job that took
until the early hours of the morning, but it
was a good experience thanks to the help
I got from my colleagues.

I wanted to show off a dance performancethat was stylish and energetic and a fitting
tribute for Musashi’s 80th anniversary.
The real work started several months
before the event. I won’t deny that it got
a little hectic, but getting everyone to feel“One Musashi” with Musashi co-workers
from around the world through the dance
was the most rewarding part.
With this dance, I want to convey
to the younger generation who will lead
Musashi in the future that we muststay forever true to the Musashi origins
of Simple and Sturdy and Consistent
Sincerity, and that they should use it even
10 and 20 years from now as Musashi
evolves in the course of their work, in otherwords, practice “Legacy of the Past, Visionof the Future.”

The “One Musashi Dance” was one of thestandout events at the 80th anniversarycelebration, so of course we wanted tofinish the dance without falling behind,but our biggest goal was making Musashi
one through dance! I poured my heartand soul into creating a video to achieve
this with a focus on making it about theentire Musashi Group. Working with thebases and retaking scenes made thevideo production schedule challenging,but under the direction of Lucky Ikeda, wewere able to successfully finish shooting
and create a video just as we had planned
that united all of our colleagues around theworld.
Looking ahead to our 100th anniversary,
I want people to keep working with aneven greater focus on One Musashi.

History of forging booklet:
Shinichi Murata

Merchandise: Yusuke Shinjo

Project office: Kaori Sakae

Project office: Takako Suzuki

We started making a novelty stationery
item using a Musashi product with theintention to create commemorative
merchandise that would be eye-catching
and create interest for Musashi products
among large numbers of ordinary people.
It is incredibly hard to create merchandisethat will be liked by a diverse range oftargets. We had to have a strong concept
and maintain our focus. We got help fromthe stationery sommelier Misato Kan
to brainstorm ideas about what kind of
stationery item to make and decided ona bookmark with a miniature bevel gear
attached, which people can take with themand use anywhere. While attaching abevel gear to a bookmark with a chain may
not seem that complicated, it took a lot ofwork to make. We were able to bring it toeveryone thanks to the help we received
from many of our colleagues.

If I can’t have fun, I can’t create somethingt h a t ’s f u n , s o m y f i r s t g o a l w a s t ohave fun. It was difficult at times in theplanning stage to bring everyone’s ideas
together, but I think we were able tocreate something better because we had
differences of opinions we had to work out.
On the day of the party, it was truly
satisfying and rewarding to see everyone
having such a good time. Most of all,working together with many people fromother divisions and bases and creatingstrong relationships in the Executive
Committee were for me the greatest
rewards. I hope that we remember that weare united together with our colleagues
around the world through the Musashi
Philosophy.

I always kept in mind the idea of getting all
the bases involved and everyone having agood time. I tried to respond quickly when
I would get email from a member who was
overseas or who I could not meet directly,
and I went out to talk about the meaningof the One Musashi Dance so that people
would understand it. Within this process,overseas bases sent in dance movies
surprisingly fast and with impressively highquality. In Japan, so many people took
part that the dance studio was practically
overflowing. It was moving to see people
getting into the dance and having so muchfun.
I hope that we make One Musashi
again for the 100th anniversary and I get
to participate in an event that exceeds
what we can imagine now.

We are showing Musashi’s future potential
by talking about its past. This is what I
wanted people to feel. I believed thatmy mission was to create a booklet
about Musashi’s history of forging. Thisis the “Dynapac Story.” I went around tointerview several of my senior peers andthen pieced together their stories. This
was a precious experience for me and felt
cathartic. While showing appreciation to
our predecessors, I made it a rule not touse names in creating the story. What thestory conveys is our evolution—the spiritof a blacksmith shop that always takes on
difficult challenges. The meaning of thetitle is supposed to become clear after
you finish reading the story. It contains amessage to young people that brims withcourage.

80-Year History of Musashi- 120 -

- 121 -

80-Year History of Musashi

80th Anniversary Special Present
On September 10 and 11, 2018, Takahiro Hachigo, President, CEO, and Representative Director of Honda
Motor Co., Ltd., visited Musashi over two days to celebrate its 80th anniversary. In addition to visiting the
Ueta Plant, Akemi Plant #2, and Horai Plant, he also held a discussion with young Musashi employees.

Special Hearing about the experiences of Honda’s top management
President Hachigo visited Musashi, he held a special discussion with nine young anddiscussion Whenenthusiastic Musashi employees.

Shino Sonohara Noriaki Sugita
R&D Division
L&S Division

Hiroshi Otsuka
Musashi President

Plant Tour

Forging plant, Akemi Plant #2

AGV automated transport, manufacturing
engineering plant, Ueta Plant

H

AI bevel gear inspection equipment,
Akemi Plant #2

e saw Musashi’s 80
y e a r s o f m a n u fa c turi ng
capabilities and how Musashi isactively pursuing AI and IoT andinnovating its technology looking
to the future. He saw firsthandthe manufacturing capabilities
and know-how that Musashi has
built up that will create its futurecompetitiveness.
The employees introduced
the products they produce andhow those products are built intocars so that he could get a direct
sense of the daily efforts they put
in so as to create the world’s best
manufacturing.

Introducing an improvement story, 4R camshaft,
Horai Plant

Words for Musashi from President HachigoReaching your 80th anniversary in business is the result of
all the hard work you have put in and a truly impressive
achievement. Please accept my heartfelt congratulations.
The automotive industry is coming to a once-in-a-century turning
point. I am impressed and reassured by the spirit of challenge anddedication you bring to Musashi, to further evolve the manufacturing
Musashi has done since its founding, to proactively incorporate
new technologies like AI and IoT, and to achieve the world’s best
manufacturing at Musashi. As a member of Team Honda, I hope thatyou will continue to work together with us.

Tatsuya Terada

Machinery Division PT Division

Kazunori Ochiai Nobuyoshi Yamaguchi Naoya Akaishi
Quality Assurance
R&D Division
PT Division
Division

Ayano Sugaya
Manufacturing Takahiro Hachigo
Division 1
Honda President[Excerpts from the informal discussion]

how much will you be able to pass down the thinking of Soichiro

Sonohara: What was the most difficult thing you’ve experienced

Honda?

in your career? And how did you overcome it?

President Hachigo: The thinking of our founder is immensely

President Hachigo: Teamwork! Right after I started working
at Honda, I was assigned to brake design. Brakes are made byi m p o r t a n t . H o n d a ’s b a s i c p h i l o s o p h y s h o u l d b e f u l l y

combining a range of technologies, so I couldn’t make them onthings that need to evolve with the times. I want the younger

my own but needed help from various people. When I became

generation to carry on the philosophy of our founder and thenPresident, I learned from this experience and used the expression

think about how to create new value corresponding to the times.

“Team Honda” to call on people to work together.

While what is normal for Honda is not normal for the world, thisOchiai: The HondaJet is getting a lot of attention now, but I

must match the times. I want what is not normal to be in theheard that development took a very long time. How did you

good sense of the phrase.

maintain motivation when progress was stalled? What was the

Akaishi: How do you think cars will evolve in the future? And

atmosphere like inside the company?

how do you want to make them evolve?

President Hachigo: We were working on other R&D besides the

President Hachigo: I want to make new things based on the

jet at the same time then, but everything was not looking rosy.

concept of the freedom and joy of mobility. With the freedom ofWith the jet, I think the strong resolve of the people involved who

mobility, I also want to keep the joy of mobility even with fully

wanted to realize the project one day was a source of motivation.

self-driving cars. For motorcycles especially, people ride them

And then they received support and encouragement from Honda

not for a specific purpose but so they can enjoy the weather andfans and other Honda employees who were inspired by their

be out in nature. I think we have to give people experiences that

resolve, and I think this really lifted them up and was a big factor

they can’t get in everyday life, and I think about new types ofbehind their success.

mobility that can do this.

Terada: Why did you create this opportunity to talk with us now?

All: You have experience in the fields of design and management.

President Hachigo: I wanted to hear what you think of Honda.

What should I do to become a generalist in the future?

Even if I get one person to understand what I mean when we talkPresident Hachigo: As I worked on projects, I always thoughtin person, that person will tell the people around them and thisabout how to get the people I was working with to share thewill spread my concept of Team Honda.

same goal and thinking as me. First, you have to be personable

Yamaguchi: Could you tell us what your vision is for the futureand someone who others want to be around. Then you have to

10 and 20 years from now?

have a lot of colleagues who are willing to help you when you run

President Hachigo: What we absolutely have to do is address

into problems and communicate a lot with people.

environmental considerations and work to achieve zero traffic

President Hiroshi Otsuka: When you were appointed president,

accidents. In addition to these goals, I want to bring fun to people’s

it seems like you used the phrase “Team Honda” to shorten the

lives and mobility. What form will the things that bring customers

distance between youself and others. Ultimately it comes down

joy take? I hope to get ideas and suggestions from the younger

to interpersonal relations. The closer people feel, the more theygeneration. Please take action of your own volition and not because

want to live up to your trust in them and support what you’re

someone told you to.

doing. I look forward to seeing Team Honda create stronger

Okada: My impression of Honda is that what is normal for Honda

bonds, become a greater force, and grow even bigger.

communicated to the younger generation. But there are also

is not normal for the world. As the world around us changes,

Card sent by President Hachigo

80-Year History of Musashi

Tado Zen
Sales Division

Hikaru Okada- 122 -- 123 -

80-Year History of MusashiPart 9Musashi Spreading
Around the World

Global network makes optimal production and supply system achievable.
Musashi Global Network

Seven domestic production
sites are pursuing high-efficient
production as the mother plants ofoverseas facilities.

Musashi Seimitsu Industry Co., Ltd.
Head Office / Ueta Plant

株式会社浅田可鍛鋳鉄所
Asadakatan Chutetsusho Co.,Ltd.
本社工場
Head Plant
三和工場
Miwa Plant

80-Year History of Musashi- 124 -

- 125 -

80-Year History of MusashiMusashi Europe GmbH（MEU）

1[Attractive points of Musashi Europe GmbH]

Developing the Musashi Brand in the Historic EU Market

We have a long history of more than 90 years andare deeply connected to the local community. We[Location]

Bad Sobernheim, Germany[Challenge of Musashi Europe GmbH][History]

1925 Established by Johann Hay(Currently Musashi Bockenau
GmbH)
2016 Acquired by Musashi

2018 Trade name changed andintegrated with the Musashi
brand
[CEO]

Ulrich Mehlmann[Employees]

2,329 (Mar. 2018)[Sales]573.426 mil. EUR (Mar. 2018)

Our company name was integrated with theMusashi brand in July 2018 and the trade namesof the former Hay were changed accordingly.
Now under the vision of “Wir formen die Zukunft”(We form the future), we are implementing thehave a diverse culture with a home-like atmosphere.

Culture Renewal Program to establish the Musashi
Philosophy, manufacturing spirit, and culture
aiming to become one team with Musashi Group
companies.

❻
❽

❹❺
❸
❶❷

❼
❾ Tianjin, China❶ Musashi Europe Gmbh

Musashi Bad Sobernheim GmbH & Co. KG❸ Musashi Grolsheim GmbH & Co. KG❹ Musashi Hann. Muenden Forging GmbHMusashi Hann. Muenden Machining GmbH❼ Musashi Spain Villalba S.L.

❺ Musashi Leinefelde Forging GmbH & Co. KG
Musashi Leinefelde Machining GmbH & Co. KG❽ Musashi Hungary Füzesabony Kft.

❻ Musashi Luechow GmbH❾ Musashi Auto Parts Tianjin Co., Ltd.

Hay was founded in 1925
❷ Musashi Bockenau GmbH & Co. KG

80-Year History of Musashi- 126 -

- 127 -

80-Year History of MusashiMusashi Europe GmbH
Sharing the Musashi philosophy in workshops and technical communication

Gruppenbild Firmenlauf 2019

Participation in the Frankfurt Motor Show

Musashi Europe Headquarters with the Musashi Group logo

Members of the Munich office of the former MEU

80-Year History of Musashi- 128 -

- 129 -

80-Year History of MusashiMusashi Hungary Manufacturing, Ltd.（MHM）

2

Aiming to Expand Business through Synergies withMusashi Europe[Attractive points of MHM]
We are located in Ercsi city, 35 kilometers
southwest of Hungary’s capital Budapest, whichis called the “Pearl of the Danube.” Established in
2002, we supply Musashi-brand products such asball joints to global-leading European automakers
including Audi, Daimler, Jaguar Land Rover, BMW,and Fiat.

[Challenge of MHM]
Our 2020 strategy vision is to stabilize business,achieve growth, and start a winning cycle.
To make this strategy a success, we are firstaiming to expand business by developing unique
technologies and creating synergies with Musashi
Family Day[Establishment]

Feb. 2000[Location]

Ercsi, Hungary[Site area]

74,000 m²[Employees]

194 (Mar. 2018)[Sales]38.082 mil. EUR (Mar. 2018)[History]

2007 Plant expansion2013 BSS Perform. Bronze prize2014 BSS Perform. Gold prize[History]

2015 BSS Perform. Gold prize2016 BSS Perform. Silver prize[President]

2001–2007
2007–20092009–20122012–2016
2016–2018
2018–

G. Giorgetta
Nobuyoshi Sakakibara
Koji Horibe
Akira Mataga
Yusuke Fukuda
Andras Nagy

Europe. Second, we will build first-class quality
supported by effective management systems andfinancial stability. Third, we will make improvements
to become “Musashi people” who take the initiative.

Support for summer camp for sick children

One Musashi Dance

Main production products

Differential Assembly

Wheel Hub

Camshaft Assembly

Suspension Arm Assembly

80-Year History of Musashi- 130 -

- 131 -

80-Year History of MusashiMusashi Auto Parts Co.,Ltd.（MAP-TH）

3First Asian Group Company Outside of Japan and a Driver of Growth[Attractive points of MAP-TH]
We have a 30-year history and technical strengths
evidenced by sales to the highest number of OEMsin the Musashi Group as well as the generous
and broad-minded culture of the Thai employees,
who have welcomed know-how from MSI and
KMS. Up to now, we have communicated various
improvement activities to other Group companies

and consistently expanded sales by independently
exploring new markets. We are committed asa team to achieving new development andtechnological innovation founded on our cultureof the “Land of Smiles.” The way that employees
address issues with a smile could be said to be ourmost attractive quality.

[Challenge of MAP-TH]

Navanakorn

Prachinburi[Establishment]

Dec. 1987[History][Location]

Pathumthani, Thailand[Site area]

43,520 m2 (Navanakorn)
120,000 m2 (Prachinburi)[Employees]

1,502 (Mar. 2018)[Sales]5,672.148 mil. THB (Mar. 2018)[History]

1987 Established1996 Establish second plant in
Prachinburi
2007 Receive order for bevel gears
and ball joints from Nissan
2008 Receive Cost Award from
Honda Thailand
2009 Receive order for differential
gears from Suzuki[President]

2011 Navanakorn plant is flooded
2014 Receive order for bevel gears
for Ford Motor from Dana
2015 Receive order for engine parts
from Isuzu Thailand
1997–1998
1999–2002
2003–2004
2005–2008
2009–20102010–20122012–20132013–2016
2016–20172017–

We show impressive team spirit and the ability to
act with speed and coordinated effort when facedwith difficulties. We take action based on theMusashi Philosophy principle of seeing mattersthrough to completion instead of whether they canor cannot be done. We perpetually seek to amplify

and strengthen our collective ability to manufacture
attractive products. We will further expand andevolve the Musashi brand, which is appreciated bypeople around the world, and elevate the Musashi
Group to the global No. 1 in the industry.

HONDA Quality Award 2017

Ikuo Makino
Fumio Morikawa
Hideyo Saito
Seiichi Ishiduka
Tetsuyo Maruyama
Takashi Souda
Naohiro Matsumoto
Ikuo Makino
Ryuji Izumi
Kazuyuki Masuo

Main production products

４Ｗ
Engine Gears

Planetary Gears

Bevel Gears

Camshaft

Ball Joint
30th anniversary ceremony

２Ｗ
T/M Assy

Primary Driven

Primary Drive

Camshaft

Other Gears

ＰＥ
Crankshaft

80-Year History of Musashi

Camshaft- 132 -

Bevels- 133 -

80-Year History of Musashi

P.T. Musashi Auto Parts Indonesia（MAP-IN）

4[Attractive points of MAP-IN]
We greet customers with a cheerful “Selamat
pagi!” as a vibrant plant filled with youthful energythat continues to provide corporate value to all
stakeholders and contribute to the development

Contributing to Indonesia’s Development with
Outstanding Competitivenessof Indonesia. We are working with employee
participation to improve our QCD competitivenesson a daily basis.

[Challenge of MAP-IN]
Our vision is to contribute to the spread of mobility
that makes people happy through the sustained
development of our business and enriching the livesof people in Indonesia. To achieve this vision, ourgoals are:1. Own construction of a high-efficiency production
line making full use of automation technology
2. Construction of a high value-added productiongroup making full use of tools and in-house die

Cikarang

manufacturing technology
3. Construction of an operations system utilizing IoT
and AI technology
4. Continuous human resource development torealize the above
To become the No. 1 PT supplier, we are challenging
ourselves to evolve every day.

MMC World Competition

Karawang

2017 ANAK IKAN Team

[Establishment]

Mar. 1996[Location]

Bekasi, Indonesia[Site area]

55,000 m2 (Cikarang)
60,000 m2 (Karawang)[Employees]

1,121 (Mar. 2018)[Sales]2,697,126 mil. IDR (Mar. 2018)[History]

2003 Establish second plant2004 Establish third plant[History]

2006 Establish Karawang plant2015 Expand Karawang plant[President]

1996–1999
1999–2003
2003–2006
2006–20102010–2017
2017–（Production volumn 2W : 5,786,264 Unit

Transmission Gear, Gear Comp,
OthersPlanetary

Differential Comp

Camshaft

Transmission Part, Transmission
Scooter
Assembly

Outer Clutch,
Comp

Primary Gear

Starter Gear

Kick Starter
Assembly

80-Year History of Musashi- 134 -

2014 TIMUN MAS Team

Family day

Kunihiro Kawabata
Mitsutoshi Sugai
Yasuhiro Abe
Norikazu Okada
Hideaki Asakura
Koji Takahashi

Main production products

Balancer Gear

2016 BANDREX Team

4W : 3,581,851 Unit）

Camshaft
Assembly- 135 -

80-Year History of MusashiMusashi Auto Parts India Pvt. Ltd.（MAP-ID）

5[Attractive points of MAP-ID]
Founded in July 2002, we are now steadily
expanding our business with a two-plant system,
the first plant in northern India (Bawal) and thesecond plant in the south (Bangalore).
Manufactured parts range from engine andtransmission parts for scooters and motorcycles tofour-wheeled engine, transmission, and suspension

Aiming to Become the No. 1 in One of
the Leading Growth Markets in the World

components.
We will promote local procurement of materials,
tools, dies, and production facilities, and willcontinue to strengthen our competitiveness throughinteractions with other Asian bases, developing
kaizen improvement activities horizontally, andbenchmarking activities.

[Challenge of MAP-ID]
The Indian market, the world’s largest motorcycle
market and the world’s fourth largest four-wheeledmarket, is also the most promising market for future
growth.
With the aim of continuing business growth inIndia, we are strengthening the development of new

Bangalore

Bawal[Establishment]

Jul. 2002[Location]

Haryana, India[History]

2012 Groundbreaking ceremony for
2nd Bangalore plant2013 First shipment to HMSI2013 Start business with Exedy
Clutch India
2016 Receive Quality Award from
Maruti Suzuki
2017 First shipment to TVS[President]

2002–2007

Katsushi Yamanami

2007–2010

Mitsuhito Tagawa

2010–2013

Hideyo Saito

2013–2015

Koji Horibe

2015–

Masaru Maeda

2[Site area]

59,724 m (Bawal)
115,217 m2 (Bangalore)[Employees]

1,645 (Mar. 2018)[Sales]11,859.621 mil. INR (Mar. 2018)[History]

2004 Start business with Hero Honda
Motor
2005 Start business with Suzuki
Motorcycle India
2008 Complete forging plant2011 Construct plant for
four-wheeled parts

customers and businesses with the goal of having
the No. 1 growth in the Musashi Group. MAP-ID will
also develop local management talent to support
business growth, upgrade system infrastructure,and realize speedy growth!

India round of the Asia Road Racing Championship15th anniversary ceremony

Main production products

One Musashi Dance
2W & 4W Cam Shafts

2W SC Transmission Shaft

2W Transmission Assembly

4W Ball Joints

4W Differential Comp4W Transmission Gear

80-Year History of Musashi- 136 -

- 137 -

80-Year History of MusashiMusashi Auto Parts（Zhongshan）Co., Ltd.（MAP-CH）

6[Attractive points of MAP-CH]
Established as the first plant in China in 2003, wehave grown to more than 1,000 employees. At thetime of our founding, labor costs were still cheap
and all equipment was operated manually, but in thelast 10 years the average salary has grown nearly
five-fold and automation has been aggressively
pursued to achieve business expansion amid theworld’s most severe cost competition.

Demonstrate Strong Cost Competitiveness with
Proactive Kaizen Activities

Currently, Musashi’s China business has greatly
expanded with the establishment of Nantong Plant
and integration with Musashi Auto Parts Tianjin.
We will continue to serve as the core company inZhongshan and further evolve to capture businesswith new customers. In this difficult period, theChinese members of Musashi will work hard but
also not forget to smile.

[Challenge of MAP-CH]
Our first target is to build a foundation to become
the No. 1 in the Chinese market. Next we aim toachieve management based on greater visualization
while establishing the best QCD structure in theworld, the stable launch of new models, enhancedo p e r a t i o n a l e ff i c i e n c y, a n d a s t r e n g t h e n e dmanagement system.

Employee contribution activity[Establishment]

Jan. 2003[Location]

Guangdong, China[Site area]

65,341 m2[Employees]

1,048 (Mar. 2018)[Sales]968.513 mil. RMB (Mar. 2018)[History]

2003 Start mass production ofball joints[History]

2007 Complete new plant2008 Start mass-production of gears
2012 Complete 2nd expansion
2015 Receive award from GHAC

[President]

2003–2003
2003–2007
2007-2009
2009–

Main production products

Tatsuyoshi Tsuji
Kunihiro Kawabata
Hiroki Ito
Toshihisa Otsuka（Production volume

121 thousand）

15th anniversary ceremony

Differential Assembly（2 Pinion）

Steering Ball Joints（Tie-Rod End）

80-Year History of Musashi

Planetary Assembly（for compact cars） Suspension Ball Joints

Transmission Gear（for Automatic）- 138 -

- 139 -

80-Year History of MusashiMusashi Auto Parts（Nantong）Co., Ltd.（MAP-NT）

7

Commitment to Business Expansion Based on
the Musashi Philosophy[Attractive points of MAP-NT]
We were established in June 2014 as the second
Musashi Group plant in China in Nantong City, Jiangsu
Province. Currently, we exclusively fabricate differential
cases.
We process more than 300,000 cases per monthon 24 lines and are the largest case fabrication plant in
the Musashi Group. We are now preparing for a second
phase of construction to begin shipments of gear partsin December 2018.
Nantong City is a sister city of Toyohashi City, Aichi

Prefecture, where the Musashi Head Office is located.
The mayors of both Toyohashi and Nantong havevisited our plant, which attracts a high level of interest in
Nantong City.
We are still a young plant at about three and ahalf years old, with about two years of operations.
Employees play leading roles based on the Musashi
Philosophy and work together with a smile to launch
new business and maintain stable production.

[Challenge of MAP-NT]
Our challenge is to successfully mass-produce
products by transferring equipment from Zhongshan
to Nantong and introducing a new line. In addition,
we aim to be a company where transferred
employees from Zhongshan and new recruits
work together in a vibrant atmosphere and feel asense of reward. We have also established a good

relationship with the government and business
partners.
From now, we will focus on the three pillars of(1) developing the No. 1 personnel in the world, (2)achieving the No. 1 in market share, site operations,and quality, and (3) maintaining and expanding
existing operations and developing new business.

Toyohashi Junior High School students[Establishment]

Jun. 2014[Location]

Jiangsu, China[Site area]

60,000m2[Employees]

288 (Mar. 2018)[Sales]226.271 mil. RMB (Mar. 2018)[History]

2014 Established[History]

2015 Start construction of the plant2015 Start mass production2018 Start 2nd plant expansion[President]

2014–2015 Toshihisa Otsuka
2015–2017 Seiki Kajiwara
2017–
Toshihisa Otsuka(Site manager: Tatsuya Kobayashi)

Main production products

HD DIFF

80-Year History of Musashi

Ceremony marking the completion of construction（3,364 thousand units）

ZF DIFFZF DIFF- 140 -

- 141 -

80-Year History of MusashiMusashi Auto Parts Vietnam Co.,Ltd.（MAP-VN）

8[Attractive points of MAP-VN]
In November 2010, the MAP-VN manufacturing
plant for two-wheeled parts (manual and automatictransmission gears and camshaft comps) wasestablished in Hung Yen, Vietnam, and is now in its
seventh year of operations. We employ 500 young,diligent and highly motivated employees, who have

Youthful Energy Is Key

an average age of 28 years old.
We a r e w o r k i n g t o f u r t h e r i n n o v a t e t h ebenchmarking conducted by other subsidiaries torealize company culture reforms aimed at becoming
the No. 1 factory in the Musashi Group.

[Challenge of MAP-VN]
With the slogan of “Push forward” (Don’t be afraid
to move forward toward your goals and targets), weare working to strengthen “5S” awareness among
our young employees and achieve company culture
reforms. We have earned the trust of customers by[Establishment]

Nov. 2010[Location]

Hung Yen, Vietnam[Site area]

50,000m²[Employees]

375 (Mar. 2018)[Sales]

1,091,329 mil. VND (Mar. 2018)[History]

2011 Start delivery of camshaftcomps2012 Start delivery of scooter
transmissions[History]

2012 Start delivery of transmissions
for the Honda Super Cub
2014 Install parts-former and startin-house production of materials
2015 Start activities for automation
2016 Install of CAM-PI line

[President]

2011–2015
2015–2016
2016–

Main production products

AT Mission (for scooter)

80-Year History of Musashi

satisfying their PPM (GQI) requests by improving
stability in quality.
In addition, we were able to strengthen our profit
structure by learning about M-QCD and QCD for
new models.

Company soccer tournament

Women’s Day

Birthday party

One Musashi Dance

In-house MMC

Family day

Yoshinori Mizuguchi
Kazuyuki Masuo
Masaaki Morinaga（1,500,000 unit〈2W〉）

Transmission assembly- 142 -Camshaft- 143 -

80-Year History of MusashiMusashi Auto Parts Michigan Inc.（MAP-MI）

9

Accelerating Musashi’s Differential Strategy with Robust
Development and a Stable Production System[Attractive points of MAP-MI]
We are Musashi’s first overseas factory andmanufacture and sell automobile parts. In 1980,
we began sales of ball joints to Ford Motor asMusashi USA Inc., located near Detroit. In 1984,
we established Technical Auto Parts (TAP), a local

production plant in Battle Creek, Michigan.
Our products include automobile transmission
gears, balance shafts, and differential assemblies.
Currently we are one of the largest differential
assembly manufacturers in the USA.

[Challenge of MAP-MI]
We are aiming to capture more than 20 percent of
the differential assembly market in North America
and launched the Differential Development
Department in 2016 to develop new customers.
In addition, as the largest differential production

base in the Musashi Group, we place high value on
automation advancements, production efficiency,
and enhancing die design and production, andconsistently strive to be a driving force in the Group.

Receiving an award[Establishment]

Aug. 1980[History][Location]

Michigan, USA[Site area]

53.1 ac[Employees]

576 (Mar. 2018)[Sales]189.604 mil. USD (Mar. 2018)[History]

1984 Complete of Battle Creek
plant
1989 Receive Top Supplier Award
from Honda
1997 Start transmission gearbusiness for Honda
2003 Receive Delivery Award fromGM
2007 Start bevel gear business for
Honda[President]

2016 Receive Delivery Award from
Honda
2017 Receive Quality Award from
Honda
1980–1986
1987–1990
1991–2000
2001–2003
2004–2005
2006–20102010–20132013–2014
2014–2015
2015–20182018–

One Musashi Dance

Yoshiharu Otsuka
Morio Takahashi
Tsutomu Iwase
Ikuo Makino
Haruhisa Otsuka
Ikuo Makino
Takayuki Miyata
Toshihiro Obata
Osamu Kato
William H. Hewitt
Tim Osterhouse

Main production products
Quality Circle

Balance Shaft Comp

80-Year History of Musashi

Differential Assembly- 144 -

Differential Gear

- 145 -

80-Year History of MusashiMusashi Auto Parts Canada Inc.（MAP-CA）

10

Establish a High-efficiency Production System
by Introducing Advanced Technology[Attractive points of MAP-CA]In 1997, we were established in the village of Arthur,
population 2,000. Arthur is located in southern
Ontario Province (same latitude as Asahikawa City,
Hokkaido). The weather is cold in the winter and mildin the summer. Toronto, the largest city in Canada, is
130 kilometers away.
Our main operations are L&S and camshafts,

and we have one of the largest production scales
in the Musashi Group. L&S is an automatedintegrated production line that we developed inhouse. Camshafts are produced on a fully automatedproduction line at the highest efficiency. Canadian
immigration policy welcomes immigrants, and people
from many different countries work at MAP-CA.

[Challenge of MAP-CA]
We have been implementing a company
management system since our founding andglobally support the global SAP system.
In addition, we began design developmentin 2003 and the Tech Center was establishedCompany moral boosting Ⅰ[Establishment]

Jun. 1997[Location]

Ontario, Canada[Site area]

37.59 ac

[Employees]

434 (Mar. 2018)[Sales]179.716 mil. CAD (Mar. 2018)[History]

2005 Start Plant2 (camshaft)operations
2010 Localize full ball joint process
2015 Open Waterloo Tech Center[President]

1997–2003
2004–20052006–

in 2015. We are aiming to build an integrated
sales, development, and production system
encompassing sales, purchasing, design, analysis,
testing, prototyping, line design, and equipment
manufacturing to rapidly expand business.
Cleaning, tree planting, and BBQ on Earth Day

Haruhisa Otsuka
Tatsuyoshi Tsuji
Haruhisa Otsuka

Main production productsCompany moral boosting Ⅱ

Aluminum Arm

Clutch piston

80-Year History of Musashi

CamshaftSteering B/J- 146 -- 147 -

80-Year History of MusashiMusashi Auto Parts Mexico, S.A. de C.V.（MAP-MX）

11[Attractive points of MAP-MX]

写真キャプチャーWe are located in the state of San Luis Potosi,
Mexico (approximately 1,850 meters above sea
level in the center of Mexico). We were established
as a company in March 2012 and started mass
production of ball joint parts in January 2014. Since

写真差し替え[Challenge of MAP-MX]

Supply World’s First Planetary Gars for 10-speed AT

With the Musashi Group’s first skiving machine,
we have high-precision drilling technology, an
integrated traceability system from machining
Employee contribution activity[Establishment]

Mar. 2012[Location]

San Luis Potosi, Mexico[Site area]

66,320m²[Employees]

278 (Mar. 2018)[Sales]75.191 mil. USD (Mar. 2018)[History]

2014 Ball joints

Main production products[History][President]then, we have started production of planetaryand differential gears and launched production of
10-speed AT planetary gears for FF vehicles, aworld first, in February 2017.

to assembly, and a clean room to realize highprecision and high-quality production.

Event with the children of employees

Mothe r’s Day

2014 Planetary gears
2015 Differential gears
2017 10-speed ATs

Plant tour

Activity with the local community

2012–2014 Jun Tatenuma
2014–2016 Motoaki Sugiura
2016–2018 Masayuki Matsui
2018–
Mario Santiesteban Lopez（Production volume3,904,799）

Trash cleanup activity

Steering Ball Joint（Rack End）

Steering Ball Joint（Tie Rod End）

Suspension Ball Joint

Planetary Assembly

Differential Assembly

Planetary Assembly（10speed-AT）

Handing out goods at a medical institution

Charity run

80-Year History of Musashi- 148 -- 149 -

80-Year History of MusashiMusashi do Brasil Ltda.（MSB）

12

To Become the Best Regional Auto Parts Manufacturer
through Developing New Business[Attractive points of MSB]
We are the first Musashi plant in South America andproduce two-wheeled and four-wheeled parts for
the Brazilian market. Our manufacturing processes

encompass die design and fabrication, forging,machining, and heat treatment.

[Challenge of MSB]
One challenge we undertook was introducing a
production line for diff assemblies to meet needs
for both current and new customers. We fully
restructured our organization to survive one of theworst economic crises in Brazil’s history.
Our future challenges include riding the wave of

economic recovery in Brazil, increasing our productcompetitiveness, and becoming a factory focusedon auto parts. We also aim to maximize profit for
stakeholders by realizing the highest quality andbest cost regionally.

Activity for local community[Establishment]

May. 1997[Location]

Pernambuco, Brazil[Site area]

60,099 m²[Employees]

675 (Mar. 2018)[Sales]127.949 mil. BRL (Mar. 2018)[History]

1997 Capital participation byMusashi, made a subsidiary2001 Start production of
four-wheeled vehicle parts[History]

2017 Receive Supplier Quality Award
from GMB
2017 Start production and sales ofdiff comps for GM/Fiat[President]

1997–2005
2005–2006
2006–20092009–2014
2014–20182018–

Toru Shimizu
Ikuo Makino
Kiyotaka Fukui
Osamu Kato
Yasunori Amano
Elton Baggio VieiraSports event

Employee event

Creating a welcoming atmosphere for employees

Main production products

Engine Gear

Brake Disk

80-Year History of Musashi

Brake Disk

Differential Assembly

Balancer Weight- 150 -

Building a harmonious workplace environment- 151 -

80-Year History of MusashiMusashi da Amazonia Ltda.（MDA）

13

Supply High-quality Motorcycle Parts Nationwide in Brazil
写真キャプチャー[Attractive points of MDA]
We have a lot of energy and potential, and produce
transmissions using an integrated production

system amid the rich natural landscape of Manaus.

[Challenge of MDA]
To adapt to Brazil’s tough economic environment,
we aim to constantly reform our corporate culture

with high aspirations and capture new business to
become the No. 1 Q&D group.

In-house training[Establishment]

Mar. 2002[Location]

Amazonas, Brazil[Site area]

65,871 m²[Employees]

377 (Mar. 2018)[Sales]130.250 mil. BRL (Mar. 2018)[History]

2003 Start mass production
2006 First expansion (1.4 mil. units)
2008 Second expansion (1.5 mil. units)

Main production products[History]

2012 Third expansion (2 mil. units)
2015 Honda Q&DNO[President]

2002–2003
2004–2006
2007–20102010–2014
2014–2015
2015–



Environment Week 2018

Toru Shimizu
Shinobu Ito
Kenji Nishimoto
Tetsuyo Maruyama
Koji Tanaka
Yoshinori Mizuguchi（Production volume759.056 parts）
TPM

Function parts/Motor working

Measuring Olympic

Sports festival

Shiftdrum

Connecting Rod

Crankshaft

Transmission Assembly

80-Year History of Musashi

Camshaft comp- 152 -

Transmission shaft- 153 -

80-Year History of Musashi

KMS

14

[Attractive points of KMS]
Since our establishment, we have been operating
as a base for small two-wheeled products andrelated business.
Amid the changing domestic businessenvironment, we currently produce transmissions“Mother” Fctory for the Gbal Motorcycle Businessassembled in motorcycles and automobiles as abase for the two-wheeled FUN series (large size).
We are committed to producing products thatpeople around the world can enjoy driving.

[Challenge of KMS]
We w i l l c o n t i n u e t o l e a d M u s a s h i ’s g l o b a l
motorcycle production bases from Kyushu Musashi
while at the same time shifting from the COM series

to the more advanced FUN series.
Our goal is to achieve the No. 1 global share inlarge motorcycle transmission supply.

Autumn festival[Establishment]

Dec. 1974[Location]

Kuma-gun, Kumamoto, Japan[Site area]

123,003 m²[Employees]

558 (Mar. 2018)[Sales]

11,695 mil. JPY (Mar. 2018)[History]

1975 Ground-breaking ceremony for
1st plant
1981 Ground-breaking ceremony for2nd plant
1983 Open branch office inToyohashi
1988 Ground-breaking ceremony for
3rd (forging) plant1990 15th anniversary ceremony
1993 Complete Staff Welfare Hall[History]

2000 25th anniversary ceremony
2004 30th anniversary ceremony
2005 Complete of machinery plant2008 Complete of finishing plant[President]

1974–1996
1996–1997
1997–2000
2000–2002
2002–2006
2006–20132013–2016
2016–20172018–

Main production products

Transmission Assembly（DCT）

Transmission Assembly Ⅰ

80-Year History of Musashi

Kimitoshi Otsuka
Hitoshi Tada
Takeshi Ogura
Seiki Obara
Sumio Chijimatsu
Akiteru Kasai
Naohiro Matsumoto
Koji Horibe
Tetsunobu Kawai

Kinyukai association activities

Parent–child traffic safety class

Kinyukai activities

AMI Quality Circle

Transmission Assembly Ⅱ- 154 -- 155 -

80-Year History of MusashiMusashi Auto Parts UK Ltd.（MAP-UK）

15

A Driving Force of Continuous Growth in the EU BusinessMusashi Asia Co.,Ltd.（MAS）

18

Aggressive Pursuit of Business Maximization in Asia

[Establishment]

Jul. 1993[Establishment]

Dec. 2003[Location]

South Wales, UK[Location]

Bangkok, Thailand[Employees]

5 (Mar. 2018)[Employees]

12 (Mar. 2018)[Sales]5,837 USD (Mar. 2018)[Sales]71.698 mil. THB (Mar. 2018)[President]

1993–2001
2001–[History]

2003 Start sales and marketing
activities in Asia
2015 Start administrative work in
Asia (purchasing/technicalsupport/quality assurance)
2018 Start consolidated
management in Asia

[President]

2003–20102010–20122012–2015
2015–2016
2016–

Hiroshi Otsuka
Graham Hill

Musashi India Pvt. Ltd.（MID）

16

Identifying Customer Needs in the Giant Indian Market[Establishment]

Dec. 2011[Location]

Haryana, India[Employees]

9 (Mar. 2018)[Sales]57.013 mil. INR (Mar. 2018)[History]

2013 Export first machine to
MAP-TH
2015 Export cutting tools to
MAP-TH2017 Start parts delivery to TVS
2017 Receive order for machine
equipment from MAP-MX
and MAP-VN
2017 Receive order for new cutting
tools from MAP-IN[President]

2011–2015
2015–20172017–

Tadaharu Imoto
Kosuke Himejima
Arvinder Gill

Musashi North America Inc.（MNA）

Tetsuyo Maruyama
Takashi Souda
Hiroki Ito
Koji Horibe
Kazuyuki Masuo

Musashi Seimitsu Investment（Zhongshan）Co., Ltd.（MIZ）

19

Building the Foundation to Be the No. 1 in the Chinese Market
17

Increasing Our Presence in the North American Automobile Market
and Expanding Business

80-Year History of Musashi[Establishment]

Jan. 2001[Establishment]

Oct. 2014[Location]

Michigan, USA[Location]

Guangdong, China[Employees]

5 (Mar. 2018)[Employees]

38 (Mar. 2018)[Sales]1.192 mil. USD (Mar. 2018)[Sales]19.438 mil. RMB (Mar. 2018)[President]

2001–2002
2002–20102011–2014
2014–[President]

2014–- 156 -

Tsutomu Iwase
Takeshi Isaku
Takashi Banno
Haruhisa Otsuka- 157 -

Toshihisa Otsuka

80-Year History of MusashiMusashi Group Data

80-Year History of Musashi- 158 -

- 159 -MUSASHI 80 周年史

■ List of Directors & Officers
Director and Senior Advisor
Honorary Chairman and Director

Chairman and Representative
Director
President and Representative
Director

Executive Vice President andRepresentative Director
Senior Managing Director andRepresentative Director

President and CEO

Senior Managing Director

Director

Director and Advisory Officer

Senior Managing Executive
Officer

Senior Executive Officer

Executive Vice President andDirector

Managing Director

AuditorPresident and Executive Officer

Managing Executive Officer

Executive Officer

1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Yoshiharu Otsuka

President and CEO

Chairman & Rep. Dir.

Noboru Yanuki

Managing Director

Kimitoshi Otsuka(Yoshikazu)

Director

Motoki Mogi

Director

Masaaki Otsuka

Director

Fujiro Ikeura

Director

Nobu Suzuki

Director

Takehiro Otsuka

AuditorNagamitsu Nakazawa

President and Representative Director

Managing Director

Senior Managing Director

Dir. & Adv. Off.

Senior Managing Director

Exec. VP & Rep. Dir.

Honorary Senior
Chairman Advisor

Chairman& Rep. Dir.

President and Representative Director

AuditorSenior.
Managing Dir.
& Rep. Dir.

Managing Director Sr. Managing Dir.

Exec. VP & Rep. Dir. Director

Auditor

Auditor

Minoru Iwase
Morio Takahashi
Akira Nemoto

Director
Director

Managing Director

Sr. Managing Dir.

Managing Director

Sr. Managing Dir.

Managing Director

Director

Ryoichi Sakakibara

Director

Hitoshi Tada

Director

Yoshitaka Kobayashi

AuditorManaging Director

Auditor
AuditorDirector

Toshiyuki Ikuro
Tadashi Nakabayashi

Director

Shozo Suzuki

AuditorHideo Suzuki

Director

Tatsuo Ishiguro

AuditorDirector

Managing Director

Auditor

AuditorManaging Director

Haruo Tasaki

Managing Director

Yutaka Urano

Director

Mitsuyasu Fukumura

Auditor

Masao Terada

Exec. VP & Dir.

Managing Dir.

Director

Toru Shimizu

Director

Akira Nishi

AuditorKeikichi Nagashima

Senior Managing Director Exec. VP & Dir.

Yasunori Hamaguchi

Director

Katsutaro Sumita

Director

Exec. VP & Rep. Dir.
Managing Dir.

Senior Managing Director

Director

Hiroshi Yamamoto
Takashi Kamezaki

Director

Norinaga Morishita

AuditorSeiko Suzuki

Auditor

AuditorHisakazu Nakatsuka

Director

Noriyoshi Suzuki

DirectorTakeshi Ogura

Director

Managing
Dir.

AuditorDirector

Noriyuki Tojo

Sr. Managing Dir.

Managing Dir.

Takeshi Takeda

Managing Dir. Sr. Managing Dir.

Makoto Hosaka

Managing Dir. Sr. Managing Dir.
Director

Seiki Obara

Exec. VP & Rep. Dir. President and Representative Director

Yoshijiro Kobayashi

Ikuo Makino

Director

Mitsuru Araya

Senior Managing Director

Managing Dir. Senior Managing Director

Hayao Fujii

80-Year History of Musashi

Managing Director

Auditor- 160 -

- 161 -

80-Year History of Musashi

■ List of Directors & Officers
Director and Senior Advisor
Honorary Chairman and Director

Chairman and Representative
Director
President and Representative
Director

Executive Vice President andRepresentative Director
Senior Managing Director andRepresentative Director

President and CEO

Senior Managing Director

Director

Director and Advisory Officer

Senior Managing Executive
Officer

Senior Executive Officer

Executive Vice President andDirector

Managing Director

AuditorPresident and Executive Officer

Managing Executive Officer

Executive Officer

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Hiroshi Otsuka

Director

Managing SeniorDirector Managing
Director

President and Executive Officer

Sumio Chijimatsu

Director

Takashi Ozone

Director

Yoshifumi Kuwahara

Director

Kunihiro Kawabata

DirectorTakeshi Imura

Auditor

Sr. Managing Dir.

Director

Shunichi Matsuzaki

Director

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Goro Kamino

Director

Hideki Sorimachi

AuditorDirector

Takayuki Miyata

Managing Director

Seiichi Ishizuka

Haruhisa Otsuka

President and Representative Director*Audit and Supervisory Committee member

Shigetaro Okano

Executive Officer

Takehiko Tsuji

Executive Officer

Tetsunobu Kawai

Executive Officer

Takashi Soda

Executive Officer

Managing Exec. Off.

Senior.
Managing
Exec. Off.

Sr. Exec.
Off.

Director

Tetsuro Hamada

Director

Managing Exec. Off.

Takeshi Fujii

AuditorDirector*

AuditorDirector*

Fumio Morikawa

AuditorKeisuke Tomimatsu

Kobun Nonaka

Auditor

Asako Yamagami

Director*

Mitsuru Nishino

AuditorGraham Hill

Executive Officer

Shigeru Takeuchi
Tsutomu Yuasa

AuditorManaging Dir.
Managing Exec. Off.

Akiteru Kasai

Director

Tsuyoshi Makita

Director

Hideyo Saito

Yoshitaka Naganuma

Hari N. Nair

Director

Yoshinori Morita

Director*

Nobuo Takemasa

Sr. Exec. Managing
Exec. Off.
Off.

Director
Executive Officer

DirectorSr. Exec. Off.

Managing
Exec. Off.

Director
Exec. Off.

Mitsutoshi Sugai

Auditor

Mitsuji Yoshihara

AuditorToru Ogawa

Exec. VP & Rep. Off.

Yoshimitsu Takishima

AuditorSadahiro Kawaguchi

Executive Officer

Akira Fujishiro

Exec. Off.

Tetsuro Toyama

Executive Officer

Kenji Morisaki

Executive Officer Off.

Masa Utagawa

Exec. Off.

Sr. Exec.

Satoshi Tada

Exec. Off.

UlrichMehlmann

Sr. Exec. Off.

Yoshie Munakata

Director

Toshihisa Otsuka

Exec. Off.

Hideaki Asakura

Exec. Off.

Yasunori Amano

Exec. Off.

Tatsuya Yanagisawa

Exec. Off.

Director

Naohiro Matsumoto

Managing Exec. Off.

Yukio Takada

Managing Executive Officer

Tetsuyo Maruyama

Executive Officer

Mitsuhito Tagawa

Exec. Off.
DirectorTakeshi Isaku
Nobuyoshi
Sakakibara

Executive Officer

Senior Executive Officer

AuditorDirector*

Executive Officer

Nakamasa Iwase

80-Year History of Musashi

Director
Sr. Exec. Off.

AuditorExecutive Officer

Sadao Akiba

Exec. Off.

Sr. Exec. Managing
Exec. Off.
Off.

Exec. Off.

Director

Koji Horibe

Director

Toru Uchida

Managing Director

Executive Officer

Yukihiro Nishina

Exec. Off. Sr. Exec. Off.

Tracey Sivill

Director

Director

Director

Isao Kamiya

Auditor- 162 -

Sr.
Managing
Exec. Off.

Executive Officer Managing Exec. Off.

- 163 -

80-Year History of Musashi

■ Sales■ No. of Employees
Non-consolidated sales

FY0

Consolidated sales

50,0002017

100,000

Unit (1M JPY)
150,000

200,000

48,394

2016

180,52247,8502015

164,397

46,105

2014

158,20945,705

2013

148,820

54,9082012

125,99359,594

2011

57,862

2010

48,449

2009
2007
2005

125,51271,728

2004

62,616

2003

58,2292002

62,92972,16054,82964,53549,05559,34542,95256,18039,884

2001
2000
1999
1998

92,25988,2482013

10,956
10,492
9,114
8,491
9,036

1,424

2007

8,954

1,532

2006

8,745

1,447

2005

7,948

1,525

2004

6,931

1,448

2003

5,235

1,274

2002

4,568

1,278
1,260

2000

1,171

1999

1,080

1998

1,054

40,549

1997

880

1996

874

1995

863

28,228

1994

882

1993

28,914

1993

902

1992

28,028

1992

917

1991

30,353

1991

963

1990

29,878

1990

996

1989

29,015

1989

1,031
937

1988

25,765

1988

1987

25,743

1987

839
675

1986

22,1391986

1985

19,604

1985

664
597

1984

15,893

1984

1983

15,605

1983

619

1982

14,701

1982

616

1981

15,136

1981

601

1980

556
531

1979

10,694

1979

1978

10,102

1978

574

1977

10,420

1977

557

1976

8,907

1976

562

1975

7,394

1975

577

1974

7,821

1974

623

5,454

1973

574

1972

3,493

1972

541

1971

3,002

1971

530

1970

3,138

1970

542

1969

2,641

1969

552

1968

2,321

1968

444

1967

1,809

1967

392

1966

1,508

1966

370

1965

1,145

1965

347

1964

902

1964

285

1963

566

1963

280

- 164 -

13,543

1,143

2008

18,00012,537

1,337

2009

16,00015,8801,306

30,651

80-Year History of Musashi

14,00012,664

1,347

1994

1973

12,00016,385

1,320

2001

13,47810,000

1,322

1995

1980

Unit (persons)

8,000

1,208

37,377

1997
1996

107,246

6,000

1,336

2014

2010

Consolidated

4,000

1,182

2015

2011

144,329

67,093

2,000

2016

127,026

161,30265,701

2006

0

2017

125,205

145,449

55,201

237,910Non-consolidated
FY

2012

107,816

43,6882008

250,000

4,090
3,565
3,355
3,300

- 165 -

80-Year History of Musashi

■ Main Products Produced

Differential Assembly

Differential Assembly（Oil Seal）

Gear Box Cover Assembly

Dual Clutch Transmission Assembly

Differential Gear

Transmission Gear

Transmission Assembly（for Cub）

Automatic Mission（for Scooters）

Planetary Assembly（CVT）

Planetary Assembly（AT）

Suspension Arm Assembly

Suspension Ball Joint

Camshaft

Balance Shaft Comp

Steering Ball Joint（Tie Rod End）

Steering Ball Joint（Rack End）

80-Year History of Musashi- 166 -

- 167 -

80-Year History of Musashi

■ Commendations from Customers

June

Expansion■ 1978……………………………………………………………………………………………………………………………………………

TAP-MFG (later MAP-UK) received Supplier Quality Excellence Award (Delivery category) from
Honda of the UK Manufacturing Ltd.

DecemberReceived Excellent Company Award from Honda Motor Co., Ltd.

■ 1979……………………………………………………………………………………………………………………………………………

DecemberReceived Parts Cost Improvement Appreciation Award from Honda Motor Co., Ltd.

February■ 1996……………………………………………………………………………………………………………………………………………

February

Received letter of appreciation from Honda Motor Co., Ltd. for quality
Received letter of appreciation from Honda Motor Co., Ltd. for quality■ 1982……………………………………………………………………………………………………………………………………………

January

Received Supplier Quality Excellence Award (Cost, Development, VE categories) from Honda Motor Co., Ltd.

January

Received letter of appreciation from Honda Motor Co., Ltd. for product loyalty

May

TAP Manufacturing Ltd. (TAP-MFG.) received Best Supplier Award and Supplier Quality Excellence Award

DecemberReceived the Ford Q1 Preferred Quality Award

DecemberReceived Excellence Award from Kawasaki Heavy Industries, Ltd.

(Delivery, Quality categories) from Honda of The U.K. Manufacturing Ltd.
DecemberReceived Affiliate Company Excellence Award from Honda Motor Co., Ltd.

■ 1983……………………………………………………………………………………………………………………………………………

■ 1997……………………………………………………………………………………………………………………………………………

January

January

Received Supplier Quality Excellence Award (Development, VE categories) from Honda Motor Co., Ltd.

■ 1984……………………………………………………………………………………………………………………………………………

DecemberReceived Excellent Company Award from Honda Motor Co., Ltd.

January■ 1998……………………………………………………………………………………………………………………………………………

Received letter of appreciation from Honda Motor Co., Ltd. for quality and product loyalty
Received letter of appreciation from Honda Motor Co., Ltd. for product loyalty■ 1985……………………………………………………………………………………………………………………………………………

March

Received Best Supplier Excellence Award (Global, Quality categories) from Honda Motor Co., Ltd.

January

DecemberReceived Excellent Company Award and Public Listing Commemorative Award from Honda Motor Co., Ltd.

Received letter of appreciation from Honda Motor Co., Ltd. for product loyalty■ 1986……………………………………………………………………………………………………………………………………………

■ 2000……………………………………………………………………………………………………………………………………………

Received letter of appreciation from Honda Motor Co., Ltd. for quality improvements, product loyalty,

April

Received Appreciation Award from Honda Motor Co., Ltd. (Motorcycle Business)

Car of the Year award-winning Accord development, and production

May

Musashi Auto Parts Canada Inc. (MAP-CA) received Excellence in Quality Award from Honda of Canada Manufacturing■ 1987……………………………………………………………………………………………………………………………………………

June

Received Company Excellence Award and Consolidated Company Effort Award from Honda Motor Co., Ltd.

January

Received letter of appreciation from Honda Motor Co., Ltd. for quality and product loyalty■ 2001……………………………………………………………………………………………………………………………………………

April

Received letter of appreciation from Honda Motor Co., Ltd. for delivery

June

—

Musashi Auto Parts UK Ltd. (MAP-UK) received Delivery Effort Award from Honda of the U.K. Manufacturing Ltd.

■ 1988……………………………………………………………………………………………………………………………………………

■ 2004……………………………………………………………………………………………………………………………………………

January

February

Received letter of appreciation from Honda Motor Co., Ltd. for quality, service parts, and product loyalty

Received Supplier Quality Excellence Award (Cost category) from Honda Motor Co., Ltd.

■ 1989……………………………………………………………………………………………………………………………………………
January

Received Supplier Quality Excellence Award (Quality, Delivery categories) from Honda Motor Co., Ltd.

Innovation■ 2007……………………………………………………………………………………………………………………………………………

Global expansion

January

Received Special Cooperation Award from Kawasaki Heavy Industries, Ltd.

■ 1990……………………………………………………………………………………………………………………………………………

April

Musashi do Brazil Ltda. (MSB) received Supplier Merit Award (Powertrain category) from General Motors Company

April■ 2008……………………………………………………………………………………………………………………………………………

TAP (later MAP-MI) received Quality Excellence Award from Honda of America Manufacturing Inc.

■ 1991……………………………………………………………………………………………………………………………………………

June

Received Excellent Company Award from Honda Motor Co., Ltd.

February

June

Musashi Auto Parts Co., Ltd. (MAP-TH) received Best Cost Award from Honda Automobile (Thailand) Co., Ltd.

Technical Auto Parts Inc. (TAP) received the Ford Q1 Preferred Quality Award■ 1992……………………………………………………………………………………………………………………………………………

—Received Appreciation Award (Cost category) from F.C.C. Co., Ltd.

December—

Kyushu Musashi Seimitsu (KMS) received Quality Improvement Award from Fuji Heavy Industries Ltd.

■ 1993……………………………………………………………………………………………………………………………………………

—Musashi Auto Parts Michigan Inc. (MAP-MI) received D Award from Honda of America Manufacturing, Inc.

January—

MAP-MI received Service Parts QD Award from American Honda Motor Co., Inc.

■ 1994……………………………………………………………………………………………………………………………………………

—MAP-MI received D Award from AW North Carolina, Inc.

January

Received Supplier Quality Excellence Award (Quality category) from Honda Motor Co., Ltd.

—

MAP-CA received Quality Award from F&P Canada Mfg. Inc.

DecemberReceived Supplier Quality Excellence Award (General Parts category) from Honda Motor Co., Ltd.

—

MAP-CA received Best Supplier Award from Hyundai Motor Manufacturing Alabama, LLC

DecemberReceived Affiliate Company Effort Award from Honda Motor Co., Ltd.

—MSB received Company Excellence Award from Moto Honda Da Amazonia Ltda.

■ 1995……………………………………………………………………………………………………………………………………………

—MAP-TH received Cost Award from Thai Honda Manufacturing Co., Ltd.

January

Received Best Supplier Award and Supplier Quality Excellence Award (Quality, Cost, Development categories)—

MAP-TH received Good QCD Award from Koyo Steering (Thailand) Co., Ltd.

from Honda Motor Co., Ltd.

—

MAP-TH received Excellence Award (Q and D categories) from Siam Aisin Co., Ltd.

Received letter of appreciation from Honda Motor Co., Ltd. for service parts delivery cooperation
Received Supplier Quality Excellence Award (Quality category) from Honda Motor Co., Ltd.

80-Year History of Musashi- 168 -

- 169 -

80-Year History of Musashi—

MAP-TH received Performance Improvement Award from Toyota Motor Asia Pacific Engineering & Manufacturing Co., Ltd.

—MAP-ID received Delivery Quality Excellence Award from Suzuki Motorcycle India Pvt. Ltd.

—

MAP-TH received Safety Activity Award (Silver Certificate) from Toyota Co-operation Club—

MAP-IN received Best Cost Supplier for New Model Award from P.T. Astra Honda Motor—

P.T. Musashi Auto Parts Indonesia (MAP-IN) received Excellence in Quality Award—

MAP-CH received Supply+ Excellence Award (Best 10 in Delivery Excellence) from GAC Honda Automobile Co., Ltd.

from P.T. Honda Precision Parts Manufacturing—

MAP-CH received Delivery Excellence Award from Honda Auto Parts Manufacturing Co., Ltd.

—MAP-IN received QD Excellence Award from P.T. Astra Daihatsu Motor—

Received the Ford Q1 Preferred Quality Award—

Musashi Auto Parts (Zhongshan) Co., Ltd. (MAP-CH) received Excellent Supplier Award■ 2013……………………………………………………………………………………………………………………………………………

from GAC Honda Automobile Co., Ltd.

February Received Supplier Quality Excellence Award (Parts category) from Honda Motor Co., Ltd.

—

MAP-CH received letters of appreciation for quality achievement and zero irregular deliveries—

MAP-CA received Service Parts Excellence Award from American Honda Motor Co., Inc.

from Honda Automobile (China) Co., Ltd.

—

MAP-MI received Service Parts Excellence Award from American Honda Motor Co., Inc.

■ 2009……………………………………………………………………………………………………………………………………………

—MAP-IN received Excellent Quality Performance Award from P.T. Kawasaki Motor Indonesia

January

Received Supplier Quality Excellence Award (Cost, Parts categories) from Honda Motor Co., Ltd.

—MAP-IN received Delivery Excellence Award from P.T. FCC Indonesia

March

MAP-TH received Cost New Model Award and Delivery Award from Thai Honda Manufacturing Co., Ltd.

—MAP-ID received Special Support Award from Suzuki Motorcycle India Pvt. Ltd.

—

MAP-MI received Service Parts Excellence Award from American Honda Motor Co., Inc.

—

MAP-CH received Excellence in Quality Award from Honda Auto Parts Manufacturing Co., Ltd.

—

MAP-CA received Service Parts Excellence Award from American Honda Motor Co., Inc.

■ 2014……………………………………………………………………………………………………………………………………………

—MAP-TH received Safety Activity Award (Silver Certificate) from Toyota Co-operation ClubMay—

MAP-IN received Quality Excellence Performance Award from P.T. Kawasaki Motor Indonesia——

MAP-CH received Supplier Quality Improvement Award from Dongfeng Honda Engine Co., Ltd.

Received Supplier Commendation Contribution Award from Daihatsu Motor Co., Ltd.
MAP-IN received Best New Model Development Award (Development, Technology categories)
from P.T. Astra Honda Motor■ 2010……………………………………………………………………………………………………………………………………………

—MAP-IN received Superior Quality and Delivery Award (QD categories) from P.T. Astra Daihatsu Motor

March

—

MAP-IN received Suzuki Best Partner Award (QCD category) and The Best Vendor Performance Award (Parts category)

MAP-TH received Quality Excellence Performance Award from Siam Toyota Manufacturing Co., Ltd.

—

MAP-MI received Service Parts Award from American Honda Motor Co., Inc.

from P.T. Suzuki Indomobil Motor—

MAP-MI received Quality Excellence Award from AW North Carolina, Inc.

—

MAP-CA received Service Parts Award from American Honda Motor Co., Inc.

—

MAP-CH received Excellence in Delivery Award from Honda Auto Parts Manufacturing Co., Ltd.

—MAP-IN received Best Partner Award (QCD categories) from P.T. FCC Indonesia—

MAP-IN received Best Cost Performance Award from P.T. Astra Daihatsu Motor—

MAP-ID received from Special Support Award from Suzuki Motorcycle India Pvt. Ltd.

—MAP-IN received The Best of All Category (overall best in QCD categories) and The Best Quality Performance(Q category) from P.T. Kawasaki Motor Indonesia■ 2011……………………………………………………………………………………………………………………………………………

■ 2015……………………………………………………………………………………………………………………………………………

February Received Supplier Quality Excellence Award (Cost, Parts categories) from Honda Motor Co., Ltd.

February Received Supplier Quality Excellence Award (Environment category) from Honda Motor Co., Ltd.

—

Musashi Da Amazonia Ltda. (MDA) received QCD Excellence Award from Moto Honda Da Amazonia Ltda.

—

MAP-CH received Excellence in Quality Award from Honda Automobile (China) Co., Ltd.

—

MAP-CA received Service Parts Excellence Award from American Honda Motor Co., Inc.

—

MAP-CH received letter of appreciation for excellent cost reduction from Honda Auto Parts Manufacturing Co., Ltd.

—

MAP-CA received Supplier Excellence in Value Award from Honda of America Manufacturing, Inc.

—

MAP-CH received Delivery Guarantee Award from Guangzhou Showa Autoparts Co., Ltd.

—MSB received Supplier Quality Excellence Award from General Motors do Brazil—

MAP-TH received QD Award from Aisin Seiki Co., Ltd.

—MSB received Supplier Award from AAM South America—

MAP-TH received C Award from Thai Suzuki Motor Co., Ltd.

—MDA received Excellence Quality and Delivery from Moto Honda Da Amazonia Ltda.

—

MAP-IN received Best Cost Performance Award from P.T. Honda Precision Parts Manufacturing—

MAP-IN received Best Delivery Award (D category) from P.T. Honda Prospect Motor—

MAP-IN received VA/VE Award from P.T. Suzuki Indomobil Motor—

MAP-IN received Best Partner Award (QCD categories) from P.T. Suzuki Indomobil Motor—

MAP-IN received Good Cost Performance Award from P.T. Astra Daihatsu Motor—

MAP-IN received Excellent Quality Performance Award (Q category) from P.T. Kawasaki Motor Indonesia—

Musashi Hungary Manufacturing Ltd. (MHM) received Q Award from Jaguar Land Rover Automotive PLC—

MAP-IN received CSR Award (CSR category) from P.T. Astra Daihatsu Motor—

MHM received A Grade Supplier Award in the Logistics category from Audi AG—

MAP-IN received Best Innovation Team Award (Development and Technology categories) from P.T. Astra Honda Motor■ 2012……………………………………………………………………………………………………………………………………………

—MAP-ID received Best Delivery Award from Honda Siel Power Products, Ltd.

June

—

MAP-CH received Best Supplier Award (D category) from Honda Auto Parts Manufacturing Co., Ltd.

MAP-MI received Delivery Excellence Award from AW North Carolina, Inc.

May

KMS received Excellent Safety Activities Award from Daihatsu Motor Co., Ltd.

—

MAP-CA received Service Parts Excellence Award from American Honda Motor Co., Inc.

■ 2016……………………………………………………………………………………………………………………………………………

—

MDA received QCD Excellence Award from Moto Honda Da Amazonia Ltda.

March

Received Supplier Quality Excellence Award (Cost Award) from Honda Motor Co., Ltd.

—MAP-ID received Cost Award from Honda Motorcycle and Scooter India Pvt. Ltd.

May

KMS received Excellent Safety Activities Award from Daihatsu Motor Co., Ltd.

80-Year History of Musashi- 170 -- 171 -

80-Year History of Musashi

■ New Orders

MAP-ID received Quality Improvement Award from Maruti Suzuki India, Ltd.

Global Expansion—

MAP-CA received Excellence in Value Award from Honda of America Manufacturing, Inc.

■ 2004……………………………………………………………………………………………………………………………………………

—MSB received Supplier Quality Excellence Award from General Motors do Brazil

April

In Europe, received order from Daimler Chrysler Group for camshafts used in 1.3–1.5-liter class models—

MSB received Supplier Award (Environment Award) from Moto Honda Da Amazonia Ltda.

April

In North America, received order from Daimler Chrysler Group for camshafts used in 2-liter class worldwide car models—

MAP-MI received Excellence in Value Award from Honda of America Manufacturing, Inc.

April

In North America, received order from Hyundai Motor Company for camshafts—

MAP-CH received Excellent Supplier Award (QCD Overall category) from GAC Honda Automobile Co., Ltd.

April

Received order from Honda for planetary assys that are part of the world’s first 4WD SH-AWD system equipped—

MAP-CH received Excellence in Delivery Award (D category) from Honda Auto Parts Manufacturing Co., Ltd.

—

MAP-CH received Excellence in Quality Award (Q category) from Dongfeng Auto Parts Co., Ltd.

■ 2005……………………………………………………………………………………………………………………………………………

—MAP-TH received Delivery Commendation from Thai Honda Manufacturing Co., Ltd.

October—

MAP-TH received Cost Commendation from Thai Suzuki Motor Co., Ltd.

Julyin the Legend (Acura RL for North America)
MSC received order from Ford for truck bevel gears■ 2017……………………………………………………………………………………………………………………………………………

Innovation

January

Received Quality Excellence Award from Kawasaki Heavy Industries, Ltd.

■ 2007……………………………………………………………………………………………………………………………………………

—MAP-IN received Superior Quality & Delivery Award from P.T. Astra Daihatsu Motor

April

MAP-TH received order from Nissan Motor Co., Ltd. for pickup truck bevel gears and ball joints—

MAP-IN received Best Performance Award (QCD Overall category) from P.T. Suzuki Indomobil Motor

April

MAP-IN received order from Astra Daihatsu Motor for automobile camshafts used in 1-liter-class engines—

MAP-IN received Best Production Support Award from P.T. Kawasaki Motor Indonesia

April

MAP-ID received order from Hero Honda Motors Ltd. for one-way clutches—

MAP-CH received Excellence in Quality Award from Dongfeng Auto Parts Co., Ltd.

April

MHM received order from Audi for automobile suspension parts (ball joints) for the A4—

MAP-CH received Quality Excellence Award from JTEKT Corporation

April

MAP-UK received order from Ford Group for automobile camshafts used in V8 engines—

MAP-TH received Quality Improvement Award from Mitsubishi Motors (Thailand) Co., Ltd.

■ 2008……………………………………………………………………………………………………………………………………………

—

MAP-CA received American Honda Service Parts Award from American Honda Motor Co., Inc.

April

MAP-TH received order from Nissan Motor Co., Ltd. for steering ball joints for compact cars

April

MAP-ID received order from Hero Honda Motors Ltd. for transmission shafts and gears used in 100-cc motorcycles

April

MHM received order from BMW for steering ball joints for mid-sized automobiles

April

MHM received order from Audi for automobile suspension parts for the A4

April

MAP-MI received order from Honda for bevel gears (strategic Musashi product) used in the 2008 model Accord
locally produced in North America

April

MAP-CA received order from Hyundai Motor Company for L4 (inline 4-cylinder engine) camshafts■ 2009……………………………………………………………………………………………………………………………………………
October

MAP-TH received order from Suzuki for automobile differential gears (strategic Musashi product)

October

Received order from Ford for differential gears used in a new type of powertrain

October

Received order from Hyundai Motor Company for L4 (inline 4-cylinder engine) assembly camshafts (Musashi developed product)
for the North American market

October

Received order from Honda for automatic transmission gears (ATG) and lightweight differential assemblies for automobiles

October

Received order from Honda for transmission assemblies used in new-model large DCT motorcycles

October

Received order from Honda for related parts (gears, shafts, etc.) used in new-model CV-Matic motorcycles■ 2010……………………………………………………………………………………………………………………………………………
April

MAP-TH received order from Nissan Motor Co., Ltd. for steering ball joints used in global strategic automobile models

April

MAP-TH received order from Ford for differential gears used in pickup trucks

April

MAP-ID received order from Hero Honda Motors Ltd. for 100-cc motorcycle gears

April

MHM received order from Jaguar for camshafts used in V6 DOHC engines

October

Received order from BMW for transmission gear assemblies used in large motorcycles (R Series)■ 2012……………………………………………………………………………………………………………………………………………
April

80-Year History of Musashi- 172 -

Received order from Honda for differential assemblies and camshafts used in a new-model car (N-Box)- 173 -

80-Year History of Musashi

AprilKMS received order from Honda for transmission assemblies (DCT), balancer gears, and camshafts used in new-model

October

700-cc-class motorcycles (Integra and NC700X)■ 2016……………………………………………………………………………………………………………………………………………

April

MAP-IN received order from Suzuki for engine parts used in 1,400-cc-class automobiles

AugustReceived order from Honda for planetary assemblies used in the NSX

April

MAP-TH received order from Mitsubishi Motors for camshafts used in global compact cars

AugustReceived order from Honda for differential assemblies used in Clarity Fuel Cells

April

Received order from JATCO Ltd. for gear parts used in compact car CVT for the Asian market

AugustReceived order from Fuji Heavy Industries for bevel gears used in mid-sized automobiles

April

MSB received order from GM for transmission gear parts used in 1–1.8-liter-class automobiles

August

MAP-MI received order from Ford for bevel gears used in mid-sized automobiles

October

Received order from Honda for planetary assemblies for new-model CVT used in the Accord for North America

August

MAP-MI received order from ZF for differential assemblies used in mid-sized and large automobiles

October

MAP-ID received order from Honda Cars India Ltd. for manual transmission parts, suspension parts, and engine parts used

November

MAP-IN received order from Astra Daihatsu Motor for camshafts used in compact carsin the Brio for India

November

MAP-TH received order from Dana for bevel gears used in mid-sized automobiles

October

MAP-IN received order from P.T. Astra Honda Motor for camshafts, shafts, and gear parts used in 110-cc scooters

NovemberReceived order from F.C.C. Co., Ltd. for primary driven gears and ring starters used in Harley Davidson motorcycles

October

MAP-ID received order from Honda Motorcycle and Scooter India Pvt. Ltd. for transmission gear assemblies used

■ 2017……………………………………………………………………………………………………………………………………………

in 110-cc motorcycles

May

Received order from Aisin AW Co., Ltd. for transmission parts used in automatic transmissions for the FF

October

MAP-ID received order from Hero MotoCorp for transmission gear assemblies used in 100-cc motorcycles

May

MAP-CH received order from BYD Auto for ball joints used in automobiles

October

MAP-MI received order from ZF for differential assemblies used in new-model transmissions

May

MAP-IN received order from P.T. Astra Honda Motor for transmission assemblies and camshafts used in the new-model

October

MAP-CA received order from General Motors for camshafts used in leading global brand automobiles

October

MAP-IN received order from P.T. Aisin Indonesia Automotive for transmission parts used in Toyota global strategic

November

MAP-TH received order from Triumph for transmission assemblies used in Bonneville motorcycles

car models

November

MAP-ID received order from TVS Motor Company for primary gears used in Star City motorcycles■ 2013……………………………………………………………………………………………………………………………………………

November

MAP-VN received order from Piaggio Vietnam for camshafts used in Liberty and Vespa scooters

April

MAP-ID received order from Honda Cars India for engine and suspension parts used in the diesel Brio Amaze for India

November

MAP-MI received order from Ford for differential assemblies used in small- and mid-sized hybrid vehicles

April

MAP-IN received order from Honda Precision Parts Manufacturing for differential assemblies used in the CR-V

■ 2018……………………………………………………………………………………………………………………………………………

April

MAP-VN received order from Honda Vietnam for transmission parts used in 125-cc motorcycles

February

October

Received order from Honda for transmission, engine, and suspension parts used in the new-model Fit

October

Received order from Honda for transmission, engine, and suspension parts used in the Accord Hybrid

October

MAP-CH received order from JATCO Ltd. for gear parts used in compact car CVT for the Asian market

October

MAP-TH received order from Triumph Motorcycles for transmission gear assemblies used in mid-sized motorcycles

KMS received order from Fuji Heavy Industries for camshafts used in ATVs

250-cc-class CBR250RR sport model

Received order from Honda for differential assemblies and planetary assemblies used in 10-speed automatictransmissions for the world’s first FF

February

Received order from Aisin AW for transmission parts used in two-motor hybrid transmissions for the FF■ 2014……………………………………………………………………………………………………………………………………………
April

MAP-ID received order from Honda Cars India for manual transmission, engine, and suspension parts for the City

April

MAP-MI received order from Chrysler for differential assemblies used in the Jeep Cherokee, Chrysler 200, and other leading models

April

MAP-CA received order from Ford for camshafts used in the new-model engine for the F150

April

MAP-TH received order from Dana Inc. for bevel gears for Ford including exports to Thailand, South Africa, and Argentina

April

MAP-IN received order from Astra Daihatsu Motor Co., Ltd. for transmission parts used in compact cars

April

MAP-TH received order from Thai Honda Manufacturing for transmission assemblies and camshafts used in
650-cc motorcycles■ 2015……………………………………………………………………………………………………………………………………………
April

MAP-TH received order from Isuzu Motors Co., (Thailand) Ltd. for engine parts

April

MHM received order from Getrag Corporate Group for differential assemblies for dual clutch transmissions

April

MSB received order from Fiat Automobiles S.p.A. for differential assemblies used in leading compact car models

April

MSB received order from Dana for bevel gears used in the Toyota Hilux

April

MSB received order from American Axle and Manufacturing, Inc. for bevel gears

April

MAP-IN received order from P.T. Astra Honda Motor for automatic transmission camshafts used in the 110-cc-class BeAT FI

October

MAP-MI received order from Ford for differential assemblies used in small and mid-sized automobiles

October

MSB received order from American Axle and Manufacturing for four-wheel-drive system parts

80-Year History of Musashi- 174 -

- 175 -

80-Year History of Musashi

■ History
Musashi Initiatives

Industry & World Events■1938…… ………………………………………………………………
Yoshiharu Otsuka establishes Otsuka Kikai Seisakusho
April(Otsuka Machinery Plant) in Togoshi, Shinagawa-ku, Tokyo■1939…… ………………………………………………………………
Plant is relocated to Musashino-cho, Kitatama-gun,
AprilTokyo, and trade name is changed to Otsuka Seisakusho■1938…… ………………………………………………………
National Mobilization Act promulgated (1st)AprilMusashi Initiatives

Industry & World Events

Foundation■1941…… ………………………………………………………………
Begin construction to expand plant with saw-tooth roof—
Complete dormitory for unmarried employees—■1944…… ………………………………………………………………
Incorporate and change trade name to Otsuka Aviation Industry
January
Designated as a munitions company
April■1945…… ………………………………………………………………
Evacuate to Shinjo City, Yamagata Prefecture
February
Evacuate to Kaminoyama City, Yamagata Prefecture
June
September Dissolve Otsuka Aviation Industry■1939…… ………………………………………………………
September Outbreak of World War II (1st)■1940…… ………………………………………………………
September Tripartite Pact (27th)■1941…… ………………………………………………………
December Outbreak of the Pacific War (8th)December Automobile Control Association established■1942…… ………………………………………………………
Hino Heavy Industry Co., Ltd. establishedMay■1943…… ………………………………………………………
Munitions Companies Act approved (31st)
October■1944…… ………………………………………………………
November Bombing of Tokyo (24th)■1945…… ………………………………………………………
End of the Pacific War (15th)
AugustNakajima Hikoki K.K. renamed Fuji Sangyo K.K.
—

Reconstruction■1946…… ………………………………………………………………
Receive application of Enterprise Reorganization Act
AugustRelocate head office to Osaki-cho, Toyohashi City, Aichi
October
Prefecture, and change trade name to Musashi Sangyo Co.,Ltd.
■1947…… ………………………………………………………………
April
Begin manufacturing sewing machine parts■1948…… ………………………………………………………………
December Musashi system of waiting for new factors
December Change to direct power system—
Windmill construction fails■1949…… ………………………………………………………………
January
Begin manufacturing thread take-up cams

■1951…… ………………………………………………………………
—Begin commercial sales of sewing machine parts■1952…… ………………………………………………………………
—Begin sales to Nippon Sewing Machine Manufacturing Co.

■1953…… ………………………………………………………………
—Receive damage from Typhoon No. 13 (Typhoon Olive)—
Work on prototypes for Prince Motors, Ltd.

80-Year History of Musashi■1946…… ………………………………………………………
Honda Technical Research Institute established
OctoberNovember The Constitution of Japan promulgated (3rd)■1947…… ………………………………………………………
Labor Standards Act promulgated
April
November Honda begins production of A-Type auxiliary bicycle
engine■1948…… ………………………………………………………
Automotive Industrial Association established
April
September Honda Motor Co., Ltd. established
November International Military Tribunal for the Far East (12th)■1949…… ………………………………………………………
Japanese yen fixed to the US dollar (25th)
April
Honda begins production of the Dream motorcycle
AugustNovember Hideki Yukawa awarded Nobel Prize in Physics■1950…… ………………………………………………………
Toyota Motor Sales Co., Ltd. established
April
Outbreak of the Korean War (25th)
June
Automobile tax institutedJuly■1951…… ………………………………………………………
September United States–Japan Security Treaty signed
December Hatsudoki Seizo Co., Ltd. renamed
Daihatsu Motor Co., Ltd.
■1952…… ………………………………………………………
Honda mass-produces the Cub F-Type auxiliaryMarchbicycle engine
Bloody May Day (1st)May■1953…… ………………………………………………………
NHK begins television broadcasting (1st)February
Honda releases the Benly motorcycle
June- 176 -

November The Honda Juno scooter announced■1954…… ………………………………………………………
Marilyn Monroe visits Japan (1st)FebruaryFirst All Japan Motor Show held (20th)
April■1955…… ………………………………………………………………
■1955…… ………………………………………………………
Capture 65 percent of the thread take-up cam market in Japan September Japan becomes GATT signatory (10th)—
November First All Japan Motorcycle Endurance Road Race
held

Turning Point■1956…… ………………………………………………………………
September Begin sales to Honda Motor Co., Ltd.

■1957…… ………………………………………………………………
First use of Work Standards Chart—
Obtain Mitsui jig borers from Toyokawa Naval Arsenal—■1958…… ………………………………………………………………
Fire at Osaki Plant
March
Purchase Miyano automatic lathe with financing from
April
the Japan Development Bank
Complete first steel-frame plant
OctoberPresident Soichiro Honda of Honda Motor Co., Ltd.
—
visits Musashi■1959…… ………………………………………………………………
Deliveries to Honda Motor Co., Ltd. switch from end
Aprilof month to a timetable
Adopt white company uniforms
April■1960…… ………………………………………………………………
Complete company dining hall—

■1956…… ………………………………………………………
Act on Securing Compensation for Automobile
February
Accidents enacted
December Japan becomes a member of the United Nations (18th)■1957…… ………………………………………………………
Toyota begins exports of passenger cars toAugustthe United States (25th)
November Nuclear power plant constructed in Japan■1958…… ………………………………………………………
Kanmon Tunnel opens between Honshu
Marchand Kyushu (9th)Fuji Heavy Industries announces the Subaru
March
360 light automobile
Honda announces the Super Cub motorcycle
May
December Tokyo Tower completed (23rd)■1959…… ………………………………………………………
Crown Prince Akihito marries Michiko (10th)
April
Honda enters the Isle of Man TT Race
June
September Isewan Typhoon (26th)■1960…… ………………………………………………………
First Imported Automobile Show held (14th)May
Honda R&D Co., Ltd. established
July
Imports of motorized three-wheeled vehicles
Octoberliberalized
December Road Traffic Enforcement Act is abolished,
Road Traffic Act is enacted
This year, Japan becomes world’s top producer—of motorcycles (1.47 million)

Growth■1961…… ………………………………………………………………
First rationalization plan implemented
February
In-house job training center opens
April
Shift system introduced
April■1962…… ………………………………………………………………
First Sports Day held—
Begin sales to Sakai Plant of Kubota Tekko K.K
July■1963…… ………………………………………………………………
Second rationalization plan implemented
January
Division system adopted
April
Improvement suggestion system introduced
June- 177 -

■1961…… ………………………………………………………
U.S. President John F. Kennedy assumes office (20th)
January
Truck, bus, and motorcycle trade liberalized
April
Berlin Wall constructed (23rd)
AugustHonda machine wins World GP Race
October■1962…… ………………………………………………………
Kenichi Horie completes solo voyage acrossAugustthe Pacific Ocean (12th)
September Suzuka Circuit completed■1963…… ………………………………………………………
First Grand Prix automobile race held in Japan (3rd)May

80-Year History of MusashiMusashi Initiatives
Enter cold forging segment
AugustSeptember Change trade name to Musashi Seimitsu Industry Co., Ltd.
■1964…… ………………………………………………………………
Pension scheme introduced
April
December Successfully use cold forging to mass-produce
kickstart pinion gears and kickstart ratchet gears■1964…… ………………………………………………………
Honda debuts in Formula One race inMarch
the German Grand Prix
Tokaido Shinkansen (bullet train) line opens (1st)OctoberTokyo 1964 Olympic Games begin (10th)
October■1965…… ………………………………………………………………
■1965…… ………………………………………………………
Ueta Plant (Ueta-cho, Toyohashi City, Aichi Prefecture) July
Meishin Expressway fully opens
January
begins operations
Honda wins its first Formula One race
October
Selected as a company for investment from the Small andin Mexican Grand Prix
April
Medium Business Investment & Consultation Co., Ltd.
“Izanagi boom” economic expansion—
Complete Suzuka Plant (Hirata-cho, Suzuka City,
June
Mie Prefecture [currently Oike, Suzuka City])■1966…… ………………………………………………………………
■1966…… ………………………………………………………
Relocate head office to Ueta-cho, Toyohashi City,
Beatles visit Japan (29th)
January
June
Aichi Prefecture
Nissan and Prince merge (1st)AugustThird rationalization plan implemented
July
September Honda wins five classes of world Grand
President Soichiro Honda of Honda Motor Co., Ltd.
Prix motorcycle racingJulyvisits Musashi■1967…… ………………………………………………………………
■1967…… ………………………………………………………
Begin manufacturing ball joints and engine parts for the March
Honda releases the N360 light automobile
April
Honda N series. End sewing machine parts manufacturing
Japan Automobile Manufacturers Association,
April
Labor union formed
Inc. (JAMA) established (3rd)May
Commission of the European Communities
September Visit from Takamatsu-no-Miya (Prince Takamatsu) for July
inspection tour
established (1st)
September Materials Center completed
November Toyota and Daihatsu create business alliance
Takeyukai (Musashi Friendship Association) formed
OctoberNovember Successfully put Mitsubishi Dynapac into operation,a world first■1968…… ………………………………………………………………
■1968…… ………………………………………………………
Musashi Packaging Transportation Co., Ltd. established
Motor vehicle purchase tax instituted (1st)
July
July
Yasunari Kawabata receives Nobel Prize in Literature
September Begin sales to Kawasaki Heavy Industries, Ltd.
October
Begin sales to Utsunomiya Plant of Kubota Tekko K.K.
—
December Air Pollution Control Act promulgated (1st)
December Technology research center completed
December 300 million yen robbery (10th)
Successfully develop compact, lightweight maintenance-free—ball joints■1969…… ………………………………………………………………
■1969…… ………………………………………………………
Kosei Kaikan hall completed
Honda releases the 1300 sedan
May
May
Utsunomiya Sales Office established
Apollo 11 lands on the surface of the moon (20th)
June
July
Kubota reaper-binder steering
July
Horai Plant (Horai-cho, Minami-Shitara District,
October
Aichi Prefecture [currently Nagashino, Shinshiro City])
completed
Begin production of assemblies—
Selected as an export contributing company—■1970…… ………………………………………………………………
■1970…… ………………………………………………………
Inaugural edition of the Musashi News company newsletter
Expo ’70 begins in Osaka (14th)
January
March
Successfully develop industrial robots
Mitsubishi Motors Corporation establishedFebruary
June
New employees trial enlist in Self-Defense Forces
Photochemical smog becomes a problem in Japan
April
July
Successfully precision forge drive pinion sprocket wheels
June
December Clean Air Act (“Muskie Act”) approved inMusashi SDC Association establishedthe United States (31st)
OctoberNovember Introduce employee stock ownership system

80-Year History of MusashiMusashi Initiatives

Industry & World Events- 178 -

Industry & World Events■1971…… ………………………………………………………………
Start of Attack 11
AprilContinuous temperature measurement device completed
May
Tokyo Sales Office established
AugustSeptember Musashi Engineering Co., Ltd. becomes independentcompany
November IBM computers installed
Successfully forge bevel gears—
Successfully develop compact hemodialysis appartus—■1972…… ………………………………………………………………
First National Trade Skills Test attempt
AugustMusashi Development Co., Ltd. established
October
December Head Office South Plant constructed■1971…… ………………………………………………………
Honda announces low-emission CVCC engine
February
Mitsubishi Motors and Chrysler form business allianceFebruary
Capital liberalization implemented in theAprilautomotive industry (1st)Okinawa Reversion Agreement signed (17th)
June
Isuzu and GM form business alliance
JulyJapanese yen adopts floating exchange rate system
August(28th)■1972…… ………………………………………………………
Japanese soldier Shoichi Yokoi is discovered
January
on Guam (24th)
Sapporo 1972 Winter Olympics begin (3rd)February
Confederation of Japan Automobile Workers’
October
Unions (JAW) established (3rd)
Pandas arrive at Ueno Zoo (28th)
October
Honda announces CVCC engine
October■1973…… ………………………………………………………………
■1973…… ………………………………………………………
Utsunomiya Plant (Utsunomiya City, Tochigi Prefecture) April
Low-emission automobile preferential tax
Augustcompletedmeasure instituted
First oil crisis (23rd)
November 35th anniversary ceremony held
October■1974…… ………………………………………………………………
■1974…… ………………………………………………………
Automatic feed machine for hot forging material fabricatedHonda and Ford conclude sales alliance (9th)January
January
Dedicated DTM machine completed
Eisaku Sato receives Nobel Peace Prize (8th)June
OctoberJapan becomes world’s top exporter of automobiles
November Hot forging plant constructed—
December Special high-voltage substation constructed
December Kyushu Musashi Seimitsu Co., Ltd. established in
Nishiki-machi, Kuma District, Kumamoto Prefecture■1975…… ………………………………………………………………
■1975…… ………………………………………………………
Large, 1,600-ton hot forging press installed
Toyota Corolla becomes top mass-produced car
January
MarchDonate patrol cars to Toyohashi Police Departmentin the world
March
Start of “150 campaign”
End of the Vietnam War (30th)
April
April
Expo ’75 begins in Okinawa (19th)
November Kerosene leak accident at Horai Plant
July
Light vehicle category expanded to 550 cc and below
AugustExpansion■1976…… ………………………………………………………………
September Large tool microscope and universal metallurgicalmicroscope installed■1976…… ………………………………………………………
Lockheed Scandal erupts (4th)February
November Ceremony celebrating 50 years of theEmperor’s reign (10th)■1977…… ………………………………………………………………
■1977…… ………………………………………………………
Logistics project team formed
January
September Sadaharu Oh sets new world record for
Camshafts transferred to Kyushu Musashi Seimitsu Co., Ltd.
most home runs with his 756th home run (3rd)February■1978…… ………………………………………………………………
■1978…… ………………………………………………………
Conclude agreement with Ford Motor to export ball joints
Japanese automobile import tariff set to zero
July
March
Tokyo International Airport opens (20th)May
Treaty of Peace and Friendship between Japan
Augustand China signed (12th)■1979…… ………………………………………………………………
■1979…… ………………………………………………………
Develop multipurpose compressor with Scotch yoke mechanism January
Common first-stage exam for university admissions—
Cutting plant constructedconducted for the first time (13th)
February
MKP Project launched
G7 Summit held in Tokyo (28th)
June
June
December Energy- and resource-saving project launched
December Honda and BL sign technology alliance
Honda builds plant in Ohio, USA—- 179 -

80-Year History of MusashiMusashi Initiatives

Musashi Initiatives

Industry & World Events■1980…… ………………………………………………………………
“ABC campaign” launched
April
Head Office general administration office completed
July
Musashi USA Inc. (currently Musashi Auto Parts Michigan
AugustInc. [MAP-MI]) established in Michigan, USA
September Jointly develop low-friction grease together with
Nippon Oil Corporation■1981…… ………………………………………………………………
Lower control arm assembly transferred to Utsunomiya Plant
Julythrough outsourcing
3D measurement machine, shape measurement machine,—
and roundness measurement machine installed
November Final general wastewater treatment system begins operation■1982…… ………………………………………………………………
New robotic crankshaft production lines established—First walk rally held
July
Akemi Plant (currently Akemi Plant #1, Akemi-cho,AugustToyohashi City, Aichi Prefecture) completed■1983…… ………………………………………………………………
Measurement Olympics held
February
Honda vehicle employee introduction program begins
April
45th anniversary ceremony held
October■1980…… ………………………………………………………
Honda announces passenger automobile production
Januaryin the USA
Online alliance of city banks begins (10th)
March
September Honda announces the Tact family scooter
September Outbreak of Iran–Iraq War
Japan becomes top automobile producer in the world—■1981…… ………………………………………………………
Kobe Portopia opens (20th)
March
Exhaust emission regulations applied to
Aprilimported automobiles

December■1982…… ………………………………………………………
Toyota Motor Co., Ltd. and Toyota Motor Sales
JulyCo., Ltd. merge to become Toyota Motor Corporation
November Joetsu Shinkansen (bullet train) line opens (15th)
December Use of prepaid telephone cards begins (23rd)■1983…… ………………………………………………………
Toyota and GM sign agreement for production
February
joint venture
Tokyo Disneyland opens (14th)
April
Mandatory automobile inspection extended toJulythree years for new cars in Japan■1984…… ………………………………………………………
Satellite broadcasting begins
May
November New banknotes issued (1st)■1985…… ………………………………………………………
Tsukuba Expo ’85 begins (17th)March
NTT and Japan Tobacco Inc. founded (1st)AprilDecember Toyota constructs plant in Kentucky, USA

Global Expansion■1984…… ………………………………………………………………
Exhibit at first Tokai Electronics Show
April
December Construct Battle Creek Plant for Musashi USA Inc.
■1985…… ………………………………………………………………
Received Prize for Science and Technology
March
Exhibit products at Toyohashi Harbor Festival
AugustMusashi USA Inc. begins parts assembly work
OctoberNovember Yoshiharu Otsuka receives the Order of the Sacred Treasure,
Fifth Class■1986…… ………………………………………………………………
CAD/CAM system launched
February
President and CEO Tadashi Kume of Honda Motor Co., Ltd.
March
visits Musashi
Bust of President Yoshiharu Otsuka erected at
April
Head Office in commemoration of receiving the Order of
the Sacred Treasure, Fifth Class(gift from the Conferment Celebration Committee)
Unveiling ceremony for the bust of President
April
Yoshiharu Otsuka
December Musashi Lease Co., Ltd., Musashi Trading Co., Ltd., andMusashi Maintenance Service Co., Ltd. established■1987…… ………………………………………………………………
Exhibit products at U.S. SAE Show
FebruaryMusashi Festival ’87 held
March
Ceremony to mark the start of MDL-001 operation,
Aprila Musashi-manufactured robot controller
September Tochigi Technical Center ground-breaking ceremony held
Harvest Life Co., Ltd. established
OctoberNovember Musashi USA Inc.’s trade name changed to Technical
Auto Parts Inc. (TAP)

80-Year History of Musashi■1986…… ………………………………………………………
Chernobyl nuclear accident in the Soviet Union (26th)
April
Tohoku Expressway fully opens (30th)
July
September Use of seatbelts in automobiles becomes mandatory
in Japan■1987…… ………………………………………………………
Japanese National Railways broken up and privatized
April
(1st)
Susumu Tonegawa awarded Nobel Prize in
October
Physiology or Medicine (12th)
Stock market crash (“Black Monday”)
October- 180 -

Industry & World Events

Musashi Auto Parts Co., Ltd. (MAP) established in
Pathumthani, Thailand■1988…… ………………………………………………………………
TPM kick-off ceremony held
August50th anniversary event held—

■1988…… ………………………………………………………
Seikan Tunnel opens (13th)
March
Great Seto Bridge opens (10th)
April
Recruit scandal erupts (18th)June■1989…… ………………………………………………………………
■1989…… ………………………………………………………
Receive five trainees from Musashi Auto Parts Co., Ltd. (MAP) January
Death of Emperor Showa (7th)April
Opening ceremony for Musashi Auto Parts Co., Ltd.
Change of Japanese era name to Heisei (8th)April
January(MAP) held
Consumption tax instituted (1st)April
Honda constructs new plant in Thailand
November Yoshiharu Otsuka named honorary citizen of Nishiki-machi, July
Kumamoto Prefecture
November Berlin Wall falls (9th)■1990…… ………………………………………………………………
Begin medium-term three-year PM-2 Campaign
AprilStart TPM independent maintenance support for indirectAprildivisionsNoto Oshima Plant (temporary plant in Shika-machi,
May
Hakui District, Ishikawa Prefecture) begins operations
15th anniversary ceremony for Kyushu Musashi SeimitsuMayCo., Ltd. held
Received The Japan Society for Technology of
May
Plasticity Prize (Mitsui Precision Technology Prize)
Noto Plant ground-breaking ceremony held
June
Chairman Yoshiharu Otsuka and President Yoshikazu Otsuka
June(later Kimitoshi) assume positions■1991…… ………………………………………………………………
Noto Plant completed (Shika-machi, Hakui District,
March
Ishikawa Prefecture)
Introduce “Refresh” vacation system
April
President and CEO Nobuhiko Kawamoto of Honda Motor
Aprilvisits Musashi
Participate in economy car event
June
November President and CEO Yoshikazu Otsuka changes name to
Kimitoshi Otsuka■1992…… ………………………………………………………………
New Sales Division 2 established
January
Ceremony held at Musashi Auto Parts Co., Ltd. (MAP)
February
to mark the start of forging with a Nittan Massey 750-t
press, billet heater, non-oxidizing normalizing furnace, andKomatsu 110-t press (in-house integrated production
system established)
Drive pinions and differential pinions transferred toApril
Kyushu Musashi Seimitsu Co., Ltd.
Exhibit at Toyohashi High Tech Fair
April
Hold 530 clean-up event
April
Participate in first Toyohashi Goodwill Festival ’92
May
December Ceremony held at Musashi Auto Parts Co., Ltd. (MAP)
to mark the start of forging with a second Nittan Massey
750-t press (integrated production system for motorcycle
gears set up)
December Begin shipments to Spain-based Ederan Co., Ltd. fromTechnical Auto Parts Inc. (TAP)- 181 -

■1990…… ………………………………………………………
Four Mitsubishi Group companies and Daimler–Benz
Marchform alliance
President Mikhail Gorbachev assumes office in
March
Soviet Union (12th)
Iraqi army invades Kuwait (2nd)AugustEast and West Germany reunify to form theOctober
Federal Republic of Germany■1991…… ………………………………………………………
Gulf War ends (26th)
February
Yokozuna sumo wrestler Chiyonofuji retires (14th)May
Publicly release prototype of the Honda CUV-ES
Juneelectric scooter■1992…… ………………………………………………………
JR East begins service of new-model Nozomi train
Marchcars with maximum speed of 250 kilometers per houron the Tokaido Shinkansen (bullet train) line (14th)
National civil service personnel start having two daysMay
off each week (2nd)
Honda opens Honda motorcycle engineeringMayschool in Shanghai
Tsubasa Yamagata Shinkansen (bullet train)
Julyline opens, connecting Tokyo and Yamagata
in 2.5 hours (1st)
September Mamoru Mori becomes first Japanese astronaut toride the Space Shuttle on the Endeavor (12th)
Japan’s bubble economy collapses—

80-Year History of MusashiMusashi Initiatives

Industry & World Events■1993…… ………………………………………………………………
55th anniversary ceremony held
May
Donate 1 million yen to Toyohashi City in commemorationJuneof 55th anniversary
TAP Manufacturing Ltd. (TAP-MFG, currently Musashi
July
Auto Parts UK Ltd. [MAP-UK]) established in South Wales, UK
Step 1 of KM Plan completed (3-year plan to transfer automobile
Augustgears from Kyushu Musashi Seimitsu to Ueta Plant)
September Hold general meeting to establish Musashi Club
(retirees’ association)
December Pass H-TPM inspection
December Cold-forging equipment is relocated from Ueta Plant
to Akemi Plant■1993…… ………………………………………………………
European Union (EU) established (1st)January
Czechoslovakia is dissolved and split into
January
two independent countries, the Czech Republicand Slovakia (1st)
Nissan Motor announces suspension of automobile
February
production at its Zama Plant until the springof 1995 (23rd)
Fukuoka Dome opens, the first stadium in Japan
April
with a retractable roof (2nd)J League (Japanese professional soccer league)Maystarts (15th)
G7 Summit held in Tokyo (7th)July
Honda Collection Hall opens
July■1994…… ………………………………………………………
Honda announces limited release of 200 CUV-ES
Marchelectric scooters
Aryton Senna (Brazil), a popular Formula One
May
race driver, dies in crash (1st)Product Liability (PL) Act, with the objective ofJune
providing relief for consumer losses from productdefects, is approved (22nd)
Chiaki Mukai, the first Japanese female
Julyastronaut, successfully flies the Space Shuttle (9th)September Kansai International Airport, located in Senshu in
Osaka Bay, Osaka, opens (4th)
Kenzaburo Oe awarded the Nobel Prize in Literature
October(13th)
Major recession in Japan deepens—■1995…… ………………………………………………………
World Trade Organization (WTO) established (1st)January
7.3-magnitude Great Hanshin-Awaji Earthquake
January
strikes in Kobe, killing 6,433 people (17th)
Honda releases the Raccoon hybrid bicycle
February
Tokyo subway sarin attack (20th)
March
Windows 95, the latest operating system software
Augustfrom U.S.-based Microsoft, is released simultaneously
in 25 countries (24th)
Recession-based job scarcity, higher unemployment—
rate
Internet rapidly achieves penetration—■1996…… ………………………………………………………
Shogi player Yoshiharu Habu becomes first person
February
to ever hold seven professional shogi titles at thesame time (14th)
Bank of Tokyo-Mitsubishi, one of the largest banks
Aprilin the world, begins operations (1st)U.S.-based Ford acquires controlling stake in
April
Mazda (12th)
May
Japan and South Korea selected as joint hosts ofthe 2002 FIFA World Cup (31st)
June
Enterohemorrhagic Escherichia coli (E. coli)
O157 infection spreads throughout Japan■1994…… ………………………………………………………………
Framework raising ceremony for TAP Manufacturing Ltd.
March
(TAP-MFG.) held
Ceremony to mark the start of forging with a Komatsu
June
1,600-t press at the Ueta forging plant
Rack-end comp line transferred from the Ueta Nishi plantJune
to Akemi Plant
Step two of KM Plan completed (three-year plan toAugusttransfer automobile gears from Kyushu Musashi Seimitsu
to Ueta Plant)
December Technical Auto Parts Inc. (TAP) acquires ISO 9002
certification■1995…… ………………………………………………………………
Step three of KM Plan completed (three-year plan toJanuarytransfer automobile gears from Kyushu Musashi Seimitsu to
Ueta Plant)
Family Appreciation Program introduced
April
TAP Manufacturing Ltd. (TAP-MFG) acquires
July
ISO 9002 certification
New corporate logo on the Head Office building
August(Passion, Wisdom, Harmony)■1996…… ………………………………………………………………
P.T. Musashi Auto Parts Indonesia (MAP-IN) establishedMarchin Bekasi, Indonesia
New #2 Plant constructed at Musashi Auto Parts
AprilCo., Ltd. (MAP-TH) in Prachinburi, Thailand
Musashi obtains ISO 9001 certification
May
Technical Auto Parts Inc. (TAP) acquires ISO 9001
Octobercertification
December P.T. Musashi Auto Parts Indonesia (MAP-IN) holds opening
ceremony
TAP Manufacturing Ltd. (TAP-MFG) begins sales to—Netherlands-based Netherlands Car B.V.

80-Year History of Musashi- 182 -

Musashi Initiatives

Industry & World Events

New motorcycle license classifications of large andregular motorcycle licenses established
September Hideo Nomo, a pitcher for the Major League Baseballteam the Dodgers, pitches a no-hitter (17th)■1997…… ………………………………………………………
■1997…… ………………………………………………………………
Capital participation in Motogear Norte Industria deJapan Motorcycle Association established
JanuaryMay
Engrenagens Ltda. (currently Musashi do Brazil Ltda. [MSB]) April
Japanese consumption tax raised from three percent
in Pernambuco, Brazil
to five percent (1st)Musashi Auto Parts Canada Inc.
Act on Securing, Etc. of Equal Opportunity and
June
June
(MAP-CA) established in Ontario, Canada
Treatment between Men and Women in Employment
Ceremony held to mark first lighting of the forging
and related laws are approved (11th)Julymachine at Musashi Auto Parts Canada Inc. (MAP-CA)
UK returns Hong Kong to China, which resumes
Julyrule over Hong Kong for the first time in
155 years (1st)
Honda opens Twin Ring Motegi
AugustNagano Shinkansen (bullet train) line opens for
October
service between Tokyo Station and Nagano Station(1st)
November Sanyo Securities requests application of Corporate
Reorganization Act (3rd)November Hokkaido Takushoku Bank declares bankruptcy,
operations are absorbed by Hokuyo Bank (17th)
November Yamaichi Securities announces voluntary cessation ofoperations (24th)
December Toyota Motor releases the Prius hybrid car
December Tokyo Bay Aqua-Line expressway connecting
Kawasaki City, Kanagawa Prefecture and Kisarazu
City, Chiba Prefecture opens (18th)■1998…… ………………………………………………………
■1998…… ………………………………………………………………
Musashi Auto Parts Canada Inc. (MAP-CA) begins
Start of seven-digit postal codes in Japan (2nd)
February
February
operations
The 18th Winter Olympics are held in Nagoya (until
FebruaryMusashi obtains ISO 14001 certification
the 22nd)
AugustThe Akashi Kaikyo Bridge opens (total span of
April
December Stock registered on over-the-counter stock market at theJapan Securities Dealers Association
3,911 m) (5th)Daimler-Benz and Chrysler agree to merge (7th)May■1999…… ………………………………………………………
■1999…… ………………………………………………………………
Technical Auto Parts Inc. (TAP) obtains ISO 14001
The euro, the single currency for the eurozone,
JanuaryMarchcertificationis launched (1st)Musashi obtains QS 9000 certification
U.S.-based Goodyear Tire and Rubber and SumitomoFebruary
May
Rubber Industries agree on global alliance (3rd)September TAP Manufacturing Ltd. (TAP-MFG) changes trade name toMusashi Auto Parts Europe Ltd. (MAP-EU)
Nissan Motor and France-based Renault signMarchcapital alliance
September Musashi Auto Parts Europe Ltd. (MAP-EU) exhibits atMaterialica 99 for the first time in Munich, Germany
The Shimanami Kaido highway opens over the Seto
May
Musashi South Carolina Inc. (MSC) established inInland Sea between Onomichi City, Hiroshima
OctoberSouth Carolina, USA
Prefecture and Imabari City, Ehime Prefecture (1st)Successfully develop original 3D bevel gears
The Law Regarding the National Flag andAugust—National Anthem is passed (9th)Dai-ichi Kangyo Bank, Fuji Bank, and theAugustIndustrial Bank of Japan announce establishmentof a financial holding company and business merger(20th)
Tokai Bank and Asahi Bank merge with total assets
Octoberof approximately 99 trillion yen(7th)December Portugal returns rule over Macau to China
September- 183 -

80-Year History of MusashiMusashi Initiatives

Industry & World Events■2000…… ………………………………………………………………
Musashi Hungary Manufacturing Ltd. (MHM) establishedFebruaryin Ercsi, Hungary
Musashi South Carolina Inc. (MSC) begins plant construction
April
President and CEO Yoshijiro Kobayashi assumes position
June
November Construction of plant at Musashi Hungary Manufacturing
Ltd. (MHM) begins
November P.T. Musashi Auto Parts Indonesia (MAP-IN) obtains ISO
9002 certification
November Musashi Auto Parts Europe Ltd. (MAP-EU) obtains QS 9000
and ISO 14001 certifications■2000…… ………………………………………………………
2,000 yen banknote issued (19th)
July
Subscribers to NTT DoCoMo’s i-mode mobile
AugustInternet service top 10 million (6th)September Torrential rains hit the Tokai region. Approximately
580,000 people evacuate Nagoya and surrounding
areas (11th)
Telecommunications company KDDI is launched
Octoberthrough merger of DDI Corp. (affiliated with Kyocera),
KDD Corp., and IDO Corp. (affiliated with
Toyota Motor) (1st)The Japan Net Bank, the first Internet-only bank
Octoberin Japan, begins operations (12th)
December Broadcasting satellite (BS) digital broadcasting
begins (1st)
December Toei Oedo subway line opens in Tokyo (12th)■2001…… ………………………………………………………
■2001…… ………………………………………………………………
Musashi North America Inc. (MNA) established as aJapanese government adopts system of Cabinet
January
January
sales based in Michigan, USA
Office and 12 ministries (6th)Musashi Europe GmbH (MEU) established on the outskirts February
Miyazaki-based Seagaia resort, a third sector
Januaryof Munich, Germany
corporation, declares bankruptcy (19th)
Begin sales to U.S.-based Visteon
Toto soccer lottery begins sales (3rd)March
February
Technical Auto Parts Inc. (TAP) trade name changed to
Act on Access to Information Held by
April
April
Musashi Auto Parts Michigan Inc. (MAP-MI)
Administrative Organs goes into force (1st)Musashi South Carolina Inc. (MSC) holds opening ceremony September Terrorists hijack airplanes and fly them into the World
June
Founder and Senior Advisor Yoshiharu Otsuka passes
Trade Center in New York City and the Pentagon,
June
away at the age of 96
the headquarters of the U.S. Department of Defense,
Kimitoshi Otsuka resigns as Chairman andin synchronized terrorist attacks (11th)
June
Representative Director, appointed Senior Advisor
September First case of variant Creutzfeldt-Jakob disease (madMusashi Auto Parts Europe GmbH (MAP-EU) trade namecow disease) confirmed in Japan (21st)
Julychanged to Musashi Auto Parts UK Ltd. (MAP-UK)
Professor Ryoji Noyori of Nagoya University
Octoberawarded the Nobel Prize in Chemistry (10th)
September Exhibit for the first time at the International Motor Show
in Frankfurt, Germany
Ichiro Suzuki makes a splash in U.S. Major—
Exhibit for the first time at the 35th edition of the Tokyo
League Baseball, taking the titles for most hits,
October
Motor Show in 2001 at Makuhari Messe in Chiba, Japan
most bases stolen, AL Rookie of the Year Award,
Rawlings Gold Glove Award, and AL Most Valuable
Player Award
December Honda releases the Civic Hybrid■2002…… ………………………………………………………
■2002…… ………………………………………………………………
Musashi da Amazonia Ltda. (MDA) established in
12 EU countries begin circulation of euro coins andJanuary
MarchAmazonas, Brazil
banknotes (1st)Musashi Auto Parts India Pvt. Ltd. (MAP-ID)
Suzuki and Kawasaki begin reciprocal OEM supply
FebruaryJulyestablished in Haryana, India
for motorcycles
New manufacturing plan established for low-cost
April—
Mizuho Bank is launched (Dai-ichi Kangyo Bank,
camshafts with abrasion resistance (super low-friction
Fuji Bank, the Industrial Bank of Japan) (1st)camshafts)
April
Private schools switch to five-day schedule (1st)Business headquarters system introduced
May—
FIFA World Cup jointly hosted by Japan and South
Korea begins (until June 30) (31st)
July
Japanese Act on Recycling, etc. of End-of-Life
Vehicles goes into force
December Tohoku Shinkansen (bullet train) line opens between
Morioka and Hachinohe (1st)
December Yomiuri Giants player Hideki Matsui is signed by the
New York Yankees in the U.S. Major League (19th)

80-Year History of Musashi- 184 -

Musashi Initiatives

Industry & World Events■2003…… ………………………………………………………………
Musashi Auto Parts Zhongshan Co., Ltd. (MAP-CH,
January
currently Musashi Auto Parts (Zhongshan) Co., Ltd.)established in Guangdong, China
Musashi News suspends publication between January andJanuary
May of 2003
Utsunomiya Plant (Utsunomiya City, Tochigi Prefecture)Marchclosed (consolidated into ball joint business headquarters)
Hold first overseas go-to-market (GTM) in North America
October
Plant for Musashi Auto Parts India Pvt. Ltd.
October(MAP-ID) completed, and blessing ceremony held
November Musashi Auto Parts India Pvt. Ltd. (MAP-ID) holds ceremonymarking first shipment from plant
December Musashi Asia Co., Ltd. (MAS) established as a sales
base in Bangkok, Thailand■2004…… ………………………………………………………………
Senior Advisor Kimitoshi Otsuka passes away at the age of 72
January
Listed on the Second Section of the Tokyo Stock ExchangeMarchand the Second Section of the Nagoya Stock Exchange
Musashi News suspends publication between March 2004
March
and October 2005
Begin production of suspension arms for Volkswagen and
April
Audi (MHM)■2003…… ………………………………………………………
Director Hayao Miyazaki wins U.S. Academy Award
March
for Best Animated Feature for Spirited Away (28th)
Japanese Act on the Protection of Personal
May
Information is passed (23rd)
The Japanese Basic Resident Registration
AugustNetwork System (Juki Net) begins operation
Last wild Japanese crested ibis dies (10th)
OctoberNovember Two Japanese diplomats killed in Iraq (24th)
December Terrestrial digital broadcasting begins (1st)■2005…… ………………………………………………………………
Musashi obtains ISO/TS 16949 certification
January
Assignment changed from Second Section to First Section
Marchof the Tokyo Stock Exchange and First Section of
the Nagoya Stock Exchange
December Akemi Plant #2 completed (Akemi-cho, Toyohashi City,
Aichi Prefecture), and the Akemi Plant’s name is alsochanged to Akemi Plant #1- 185 -

■2004…… ………………………………………………………
Bird flu outbreak at a poultry farm in
January
Yamaguchi Prefecture then spreads throughout
Japan (12th)
Five Japanese citizens abducted by North Korea
May
return to Japan (22nd)
A revision to the Road Traffic Act passes
June(including revision regulating two riders
on motorcycles on highways)
September The Japan Professional Baseball Players Association
goes on strike for the first time ever during teamconsolidation discussions (18th)
Ichiro Suzuki sets new single-season record for hits
Octoberin U.S. Major League Baseball (1st)November New banknotes released (the 1,000-yen note features
Hideyo Noguchi, and the 5,000-yen note features
Ichiyo Higuchi) (1st)November Rakuten is decided as the owner of a new baseballteam in the Japanese Pacific League (2nd)
December One of the largest tsunamis ever recorded strikes
Sumatra Island in the Indian Ocean, killing morethan 250,000 people (26th)■2005…… ………………………………………………………
The Kyoto Protocol, which commits countries to
February
reducing their carbon dioxide and other greenhousegas emissions, enters into force (16th)
Chubu Centrair International Airport opens nearFebruary
Nagoya (17th)
Expo 2005 Aichi opens (until September 24) (25th)March
Act on the Protection of Personal Information
April
goes into full force (1st)Ichiro Suzuki (Mariners) gets 1,000th career hit
Junein the Major Leagues (14th)
Four Japanese highway-related public corporations
Octoberare split into six companies and privatized (1st)October
Postal Service Privatization Act is passed (14th)

80-Year History of MusashiMusashi Initiatives

Innovation■2006…… ………………………………………………………………
Press conference for change of President and CEO held
April
Yoshijiro Kobayashi resigns and President andMay
Representative Director, and Hiroshi Otsuka appointed
President and Representative Director
Introduce governance system with directors
May
Begin support for automotive club (TUT Formula)—at Toyohashi University of Technology
December New second plant constructed for P.T. Musashi Auto Parts
Indonesia (MAP-IN) in Karawang, Indonesia■2006…… ………………………………………………………
MUFJ Bank, Ltd. is created through the merger
Januaryof the Bank of Tokyo-Mitsubishi, Ltd.
and UFJ Bank Ltd. (1st)Softbank acquires Japanese Vodafone unit
March
for 1.75 trillion yen (17th)
General Motors (GM) sells its last stake
April
in Isuzu Motors as part of its rebuilding (11th)
Toyota Motor posts sales of 21.396 trillion yen for theMayfiscal year ended March 2006 to surpass
Ford Motor (10th)■2007…… ………………………………………………………………
■2007…… ………………………………………………………
Noto Plant in Hakui District, Ishikawa Prefecture
Japanese Ministry of Defense established (9th)MarchJanuary
damaged in Noto Peninsula earthquake
Public Offices Election Act is passed. Policy
February
Executive officer system introduced
statements (manifesto) allowed in national elections
April
Musashi Philosophy (Our Spirit of Foundation,
can now be distributed in local elections as well (21st)
AugustOur Corporate Mission, Guidance for Conduct) established March
Daimaru and Matsuzakaya department storesMusashi Auto Parts Zhongshan Co., Ltd. (MAP-CH)
announce business integration (becoming
October
trade name changed to Musashi Auto Parts (Zhongshan)
J Front Retailing in September) (14th)
Co., Ltd. (MAP-CH)
Toyota Motor posts operating profit ofMay
2.2386 trillion yen for the fiscal year ended
November 20th anniversary event held for Musashi Auto Parts Co., Ltd.
(MAP-TH)
March 2007, its highest ever profit (9th)The National Referendum Act is passed. On theNovember Musashi Global Vision 2020 establishedMay
condition of a constitutional amendment, the act
allows voting at age 18. It goes into force in 2010
(14th)
Mitsukoshi and Isetan department stores
Augustannounce business integration to become the largest
department store group with sales of 1.6 trillion yen(23rd)
Japan Post is privatized. The post office business,
Octoberpost offices, Japan Post Bank, and Kampo insurance
are placed under Japan Post Holdings (1st)
December Toyota becomes the largest automaker in the world
for the first time based on its forecast of actual sales
in 2007 (25th)■2008…… ………………………………………………………………
■2008…… ………………………………………………………
Begin placing large ads on concourse for the JR
Ryo Ishikawa announces his intention to
MarchJanuary
Toyohashi Station Shinkansen (bullet train) line
become a professional golfer (10th)The “Be Unique Festa” 70th anniversary celebration held
Mao Asada wins the women’s gold medal at the
April
March
Musashi corporate logo (corporate emblem) changes,
World Figure Skating Championships (20th)
April
Musashi corporate colors establishedSichuan earthquake strikes in China with aMay
Ground-breaking ceremony held for Musashi Global Center
magnitude of 7.9–8.0, 69,142 deaths, and 17,551
April
Sichuan earthquake strikes in China (12th), relief funds
declared missing (as of January 10) (12th)May
donated to Chunichi Shimbun newspaper
Tokyo SkyTree is decided as the name of the newJune
70th anniversary event held, welfare vehicles (Elysion)
tower in Tokyo (10th)June
donated to Toyohashi City
Yoshiharu Habu wins a shogi (Japanese chess)
June
Conclude plant team sponsor agreement for FY 2008
tournament to become a lifetime eisei title holder
Junewith Honda Racing Corporation (HRC)(17th)
Place billboard on wall of Daiwa Parking building
June
Toyota Motor surpasses U.S.-based General Motors
July(Shirakawa-cho, Toyohashi City, Aichi Prefecture) at(GM) in number of cars sold globally in the first
the West entrance of JR Toyohashi Station
half of 2008 to become the world’s top automaker
two years in a row in 1H (23rd)

80-Year History of MusashiMusashi Initiatives

Industry & World Events- 186 -

Industry & World Events

Place billboard on wall of Hoei Building(Hirokoji, Toyohashi City, Aichi Prefecture) atthe East entrance of JR Toyohashi Station
September Construct new Musashi Global Center on the Head Officegrounds (Ueta-cho, Toyohashi City, Aichi Prefecture)
September Musashi portal site MUGNET begins operations
Conclude agreement to be main sponsor of theOctober
motorcycle racing team HARC-PRO.
■2009…… ………………………………………………………………
Set four-day companywide plan to encourage taking ofJanuary
paid vacation days
Establish Musashi Kairai Plan (MKP)
February
Establish new project (M3 Project) to reduce overall expenses
February
Hold 6-day company-wide shutdown
February
Hold 6-day shutdown in the Production Division
March
Noto Plant (Shika-machi, Hakui District, Ishikawa
MarchPrefecture) closes. Japanese motorcycle parts businessconsolidated at Kyushu Musashi Seimitsu
Voluntary early retirement program offered (100 employees)
March
Establish original manufacturing method for assembled—
camshafts for automobiles (achieving lighter weight,
increased strength, and lower cost)
Lighten weight of automobile differential assemblies—
by 10–15 percent over existing products
Establish new manufacturing method for motorcycle—
camshafts (reducing the machining process after forging
by approximately 30percent)Musashi Kairai Dojo school opens on the Musashi Head
April
Office campus (Ueta-cho, Toyohashi City, Aichi Prefecture)
Hold four-day company-wide shutdown
April
Hold three-day company-wide shutdown
May
Conclude agreement with Aichi Prefecture for the Company
May
Forest Creation Project
Hold 1-day company-wide shutdown
June
Telephone number for the Head Office (Ueta-cho, Toyohashi
June
City, Aichi Prefecture) is changed
Begin Musashi Woodland Project in the Aichi Kenmin
June
no Mori (Kadoya, Shinshiro City, Aichi Prefecture)
Motorcycle parts development function of Kyushu
JuneMusashi Seimitsu consolidated at Musashi Seimitsu Industry
M-TPM kickoff conference held
July
Begin releasing the Musashi Environmental ReportAugust(currently the Sustainability Report) on the company website
September The M3 Project to reduce overall expenses is constructively
dissolved
The Corporate Reform Promotion Office is established
OctoberMusashi Auto Parts UK Ltd. (MAP-UK) in South—
Wales, UK is closed. The European automotive parts
business is consolidated mainly at Musashi Hungary
Manufacturing Ltd. (MHM)■2010…… ………………………………………………………………
Musashi Philosophy published in booklet form
April
Exhibit for the first time at the Automotive Engineering
May
Exposition (Pacifico Yokohama, Kanagawa Prefecture)June- 187 -

September
October

Lehman Brothers declares bankruptcy (15th)
Matsushita Electric Industrial Co., Ltd. changes
its name to Panasonic Corporation (1st)■2009…… ………………………………………………………
The Emperor of Japan celebrates 20 years ofJanuary
reign (7th)Japan is again the champion at the second WorldMarch
Baseball Classic (WBC) (23rd)
Leading U.S. automaker Chrysler declares
Aprilbankruptcy (30th)
Toyota Motor announces operating loss ofMay
461 billion yen for the fiscal year ended March2009 (8th)New jury system starts in Japan (21st)May
Leading U.S. automaker General Motors (GM)June
declares bankruptcy (1st)
September Mariners’ Ichiro Suzuki achieves record 9 consecutive
seasons of 200 hits in the Major Leagues (13th)■2010…… ………………………………………………………
Toyota’s Prius (hybrid) becomes top-selling car in
JanuaryJapan in 2009 (8th)Apple iPad tablet released in Japan (28th)May

80-Year History of MusashiMusashi Initiatives
MuSASHi RT HARC-PRO. wins Suzuka 8 Hours Endurance
World Championship
Sign sponsorship agreement with the pro basketball teamAugustthe Hamamatsu Higashimikawa Phoenix (currently the
San-en NeoPhoenix)
November Musashi Auto Parts Vietnam (MAP-VN) established in Hung
Yen, Vietnam
December Musashi South Carolina Inc. (MSC) is dissolved. The
automotive business is consolidated at MAP-MI (Michigan)
and MAP-CA (Canada). The ATV business is transferredto MSI (Japan) and MAP-TH (Thailand)■2011…… ………………………………………………………………
Hold 2-day company-wide shutdown (affected byAprilcustomers suspending operations from the Great East Japan
Earthquake)
Hold 3-day company-wide shutdown (affected byMay
customers suspending operations from the Great East Japan
Earthquake)
Hold 1-day company-wide shutdown (affected byJunecustomers suspending operations from the Great East Japan
Earthquake)Group leader system introduced for the purpose ofJune
cultivating a management mindset and skills and improving
business division efficiencies
Musashi Auto Parts Co., Ltd. (MAP-TH) in
October
Pathumthani, Thailand damaged in floods and temporarilysuspends operations
December Musashi Auto Parts Co., Ltd. (MAP-TH) sends 31 employees
to assist substitute production from the damage
from the Thai floods
December Musashi Auto Parts India Pvt. Ltd. (MAP-ID)
established as a sales and purchasing base inHaryana, India
December MAP-TH (Pathumthani, Thailand) completes draining water
on its grounds after the floods■2012…… ………………………………………………………………
Establish special appointee (director level) to strengthen
February
coordination aiming to quickly resume operations after
the flood damage at MAP-TH (Pathumthani, Thailand)
Opening ceremony held for Musashi Auto Parts
February
Vietnam Co., Ltd. (MAP-VN)
Musashi Auto Parts Mexico S.A. de C.V. (MAP-MX) establishedMarch
in San Luis Potosi, Mexico
Record special loss of 2,505 million yen (2,230 million
April
yen in damage from the Thai floods, 275 million yen in fixedand other expenses from adjusting operating days at
MAP-MI due to the Great East Japan Earthquake) in thefiscal year ended March 2012
Musashi global slogan “Power to Value” established
AprilGroup leader system revised, LM system introduced
April
September Musashi Forest Creation activities completed at the Aichi
Kenmin no Mori (Shinshiro City), and begin at Takashi
Ryokuchi Park (Toyohashi City)
The first Improvement Olympics held
OctoberJuly

80-Year History of MusashiMusashi Initiatives

Industry & World Events
July
December
December
DecemberPanasonic announces acquisition of all shares of
Sanyo through a public tender offer (29th)
Tohoku Shinkansen (bullet train) line extended toShin-Aomori Station (4th)Nissan and Mitsubishi Motors create joint venture forlight automobiles (14th)
Maglev high-speed train route between Tokyo Station
and Nagoya Station decided (15th)■2011…… ………………………………………………………
Hayabusa train cars debut on Tohoku ShinkansenMarch(bullet train) line (5th)M9 Great East Japan Earthquake strikes off ofMarch
Tohoku, with 27,490 people declared dead or missing(as of March 26, 2012) (11th)
Tsunami disables the emergency reactor coolingMarchsystem at the TEPCO-operated Fukushima Daiichi
Nuclear Power Plant, resulting in the first declarationof a nuclear emergency and evacuation order (11th)
Kyushu Shinkansen (bullet train) line fullyMarchopens (between Hakata and Kagoshima) (12th)
Panasonic makes Sanyo and Panasonic Electric
April
Works wholly owned subsidiaries (1st)JulyJapanese women’s soccer team (“Nadeshiko Japan”)
wins FIFA Women’s World Cup in Germany (18th)
July
Complete transition to terrestrial digital broadcasting(excluding Iwate, Fukushima, Miyagi) (24th)
November Japan declares it will participation in the TransPacific Partnership (TPP) negotiations (11th)■2012…… ………………………………………………………
May
Tokyo SkyTree opens (22nd)
October
U.S. MV-22 Osprey tiltrotor military aircraft
deployed to Okinawa (1st)
December “Wild daro” named “buzzword of the year” (3rd)- 188 -

Industry & World Events

Musashi Auto Parts India Pvt. Ltd. (MAP-ID) enters NHC All
India Competition■2013…… ………………………………………………………………
Received the first Environmental Management Excellence
MarchAward from the Toyohashi Chamber of Commerce andIndustry
Construct new #2 plant of Musashi Auto Parts India
June
Pvt. Ltd. (MAP-ID) in Karnataka, India
MuSASHi RT HARC-PRO. wins the Suzuka 8 Hours
July
Endurance Race (2nd time)
December Musashi Auto Parts (Zhongshan) Co., Ltd. (MAP-CH) holds
10th anniversary ceremony
December Appear in the final round of the Honda Green Contest as acompany presenting an excellent case of success
December Complete receipt of insurance payout totaling 2,301 million baht
(approx. 6,316 million yen) from the Thai floods
November■2014…… ………………………………………………………………
Musashi Auto Parts (Nantong) Co., Ltd. (MAP-NT)
June
established in Jiangsu, China
MuSASHi RT HARC-PRO. wins the Suzuka 8 Hours
July
Endurance Race (3rd time)
Acquire A environmental ranking from
Augustthe Development Bank of Japan Inc.
Musashi Seimitsu Investment (Zhongshan) Co., Ltd. (MIZ) established
October
as a holding company in Guangdong, China■2015…… ………………………………………………………………
Musashi Auto Parts (Nantong) Co., Ltd. (MAP-NT) holds
February
ground-breaking ceremony
Building No. 1 of the Musashi Dokuso dormitory
Marchcompleted (Oshimizu-cho, Toyohashi City, Aichi Prefecture)
Takahiro Hachigo, Senior Managing Officer
Juneof Honda Motor Co., Ltd., visits Musashi (after unofficial
appointment to president)
Shift to company structure with Audit and Supervisory
June
Committee
Hold first Global Leaders Conference
June
September Hold first BCP table-top exercisesMusashi Packaging and Transportation Co., Ltd.
Octoberchanges trade name to Musashi Harvest Co., Ltd.
Acquire A environmental ranking from
Octoberthe Development Bank of Japan Inc.
■2016 …… ………………………………………………………………
Hold kickoff meeting for the MAP-SAP system
February
introduction projectMusashi Holdings Europe GmbH established as a
Marchspecial-purpose company in Germany
Building No. 2 of the Musashi Dokuso dormitory
Marchcompleted (Oshimizu-cho, Toyohashi City, Aichi Prefecture)- 189 -

■2013…… ………………………………………………………
Highest price ever of 150 million yen paid for a tuna
January
at the first auction of the year at Tokyo’s
Tsukiji Fish Market (5th)48th Yokozuna sumo wrestler Taiho dies (19th)
January
JR and private railways begin shared use of 10 types
Marchof IC cards for public transportation (23rd)
Shigeo Nagashima and Hideki Matsui receive
May
National Honor Award (5th)Ichiro Suzuki gets 4,000 career professional hits (21st)
August
JR Kyushu begins Seven Stars deluxe sleeper
Octobercar service (15th)
December “Jejeje” (Oh my!), “Ima desho” (Now, right?),“Omotenashi” (hospitality), and “Bai-gaeshi”(double payback) selected as “buzzwords of the year”(2nd)■2014…… ………………………………………………………
Sochi Winter Olympics held, Yuzuru Hanyu wins
February
gold medal in men’s figure skating (7th)Abeno Harukas (Osaka), the tallest building in
March
Japan, opens (7th)Consumption tax raised from five percent to eight
April
percent (1st)Trial broadcasting for 4K TVs begins (2nd)June
Residential electric power business liberalized (11th)
June
September Mount Ontake erupts, 63 people declared dead or
missing (27th)
December Toyota announces world’s first retail fuel cell vehicle(15th)■2015…… ………………………………………………………
20th anniversary of Great Hanshin-Awaji
January
Earthquake, which killed 6,434 people (17th)
March
Hokuriku Shinkansen (bullet train) line opens
between Nagano Station and Kanazawa Station (14th)May
Toyota Motor net profit tops 2 trillion yen for the
fiscal year ended March 2015 (8th)May
Toyota Motor and Mazda form business alliance(13th)
June
Amended Public Offices Election Act is passed,
voting age is lowered from 20 to 18 (17th)
October
Broad agreement reached for the Trans-PacificPartnership (TPP) (5th)OctoberJapan begins distribution of “My Number”
citizen identification numbers (23rd)■2016…… ………………………………………………………
February
Japan’s total population declines for the first time
(26th)March
Hokkaido Shinkansen (bullet train) line opens
between Shin-Aomori Station and Shin-HakodateHokuto Station (26th)

80-Year History of MusashiMusashi Initiatives
Donate relief funds to Kumamoto Prefecture for the
Kumamoto earthquakes in Kyushu
Acquire Hay Holding GmbH (Head office: Germany)Musashi Auto Parts (Nantong) Co., Ltd. (MAP-NT)
holds ceremonies to mark plant completion and beginningof production
SAP introduced at Head Office
Hay Group logo redesigned
Begin “5S” checks during inspection visits by president
Musashi and Hay jointly exhibit at International Suppliers
Fair (IZB)
Musashi Group’s basic policy on sustainability establishedHonda Clarity Fuel Cell fuel cell vehicles (FCV) added ascompany vehicles

Taiwan-based Hon Hai Precision Industry agrees
to acquire Sharp (30th)
Retail electric power business fully liberalized (1st)
June
April
Series of earthquakes as strong as M7.3 strike
July
April
Kumamoto Prefecture (14th)
G7 Summit at Ise-Shima held (26th)May
Amended Public Offices Election Act goes into
AugustJune
force, lowering the voting age from 20 to 18 (19th)
September
U.S. musician Bob Dylan awarded Nobel Prize
October
Octoberin Literature (13th)
October
Nissan acquires controlling stake in Mitsubishi
October
Motors (20th)December
Annual number of foreign visitors to Japan tops
October
December
20 million for the first time (30th)
November Element 113 given name Nihonium (30th)
December Integrated Resort (casino) Promotion Act is passed(15th)■2017…… ………………………………………………………
■2017…… ………………………………………………………………
Acquire A environmental ranking fromDonald J. Trump takes office as the 45th president
January
January
the Development Bank of Japan Inc.
of the United States (20th)
Inaugural edition of joint company newsletter by 4 Musashi
Westinghouse, the U.S. nuclear energy subsidiary
March
May
Group bases in China (MIZ, MAP-CH, MAP-NT, Tianjin Hay)of Toshiba, declares bankruptcy (29th)
Public notice of Musashi Innovator’s Gate 2017, a project
Professional shogi (Japanese chess) player andMayJune
to create new businesses through employee-led plans
grandmaster Amahiko Sato is defeated by AI program
Musashi Woodland activities completed, and Musashi
Ponanza (20th)
June
Environment Creation activities begin at Shiokawa Higata
Sota Fuji, a junior high school student and 4-danJune(tideflats) between Toyohashi City and Tahara City in Aichi
ranked shogi (Japanese chess) player, wins recordPrefecture
setting 29th straight victory (26th)
Musashi Auto Parts India Pvt. Ltd. (MAP-ID) holds
Toyota Motor and Mazda form capital alliance (4th)AugustJuly
15th anniversary ceremony
Kazuo Ishiguro awarded the Nobel Prize in Literature
October
Yoshiyuki Matsumoto, Senior Managing Director of(5th)AugustHonda Motor, visits Musashi
November Broad agreement for the Trans-Pacific Partnership(TPP) without the United States announced (11th)
September Musashi and Hay jointly exhibit at the Frankfurt Motor Show
(IAA Cars 2017)
December Yoshiharu Habu becomes the first-ever shogi player
Conclude comprehensive cooperation agreement withto hold seven lifetime eisei titles (5th)October
Toyohashi University of Technology
December Opening ceremony for the Machinery & Tools Business Unit
(2-79 Akemi-cho, Toyohashi City, Aichi Prefecture) held
■2018…… ………………………………………………………
■2018…… ………………………………………………………………
AI Project establishedBank of Tokyo-Mitsubishi UFJ changes name to
April
January
Honda NSX models added as company vehicles
MUFJ Bank (1st)March
88 employees enter the Honokuni Toyohashi Half Marathon
July
Kumagaya City, Saitama Prefecture, sets record forMarchto celebrate Musashi’s 80th anniversary
highest recorded temperature in Japan at
One Musashi Festa held to celebrate Musashi’s
41.1 degrees Celsius (23rd)
April
80th anniversary
August60th anniversary of the Honda Super Cub (1st)Complete the One Musashi Dance
August100th edition of the Japanese High School
April
Introduce regional management structure (regional
Baseball Championship tournament held (5th)April
CEO system)
September M6.7 Hokkaido Eastern Iburi earthquake strikes (6th)Introduce small teams system (group manager system)
September Naomi Osaka becomes the first Japanese tennis player
April
AI Project exhibits at the second Artificial IntelligenceApril
to win the U.S. Open (8th)Exhibition and Conference in Japan
September Singer Namie Amuro announces retirement (16th)
Outside directors form majority of the Board of Directors
June
for the first timeApril

80-Year History of MusashiMusashi Initiatives

Industry & World Events
March- 190 -

July
September
September
OctoberIndustry & World EventsHay Group changes trade name, integrates with the Musashi
brand
AI Project exhibits at GTC Japan 2018, organized by
NVIDIA
President Takahiro Hachigo of Honda Motor visits Musashi
Acquire Asadakatan Chutetsusho Co., Ltd. (Headoffice: Fukuchiyama City, Kyoto Prefecture)- 191 -

80-Year History of Musashi

Where Musashi Was Founded

Postscript

Location of founding: Togoshi,
Shinagawa-ku, Tokyo

Initial plant location in
Toyohashi City: Osaki

Date of visit: July 20, 2018

Date of visit: August 22, 2018

This company history is being published as part of the events celebrating Musashi’s 80th anniversary.
The project to publish this book started with a team of eight likeminded employees in October 2017.
There are very few opportunities to work on something like publishing a company history, and we were
honored to have this opportunity to edit the material but at the same time felt the pressure of setting down
80 years of Musashi history for future posterity.

Three of us (Shimizu, Matsumiya, Nakanishi) fromthe company history project team visited the Togoshi
neighborhood of Tokyo, where Musashi was founded.
The neighborhood has been rezoned and looks nothing likeits former self. The original site of Musashi was behind anapartment building, but we were not able to see anything when
we tried to get a look behind the building. (We determined thelocation through research beforehand.)But just coming to the site where Musashi was originallyfounded and knowing that this was where our predecessors
once worked was a deeply moving experience.

■ 4-11 Togoshi, Shinagawa-ku, Tokyo

Today, near the original site of Located behind the apartment
Musashibuilding

We visited the former plant site in Osaki-cho, which was
the initial Musashi plant built in Toyohashi City, locatedabout a five-minute drive from the current Ueta Plant.
The former site is located along the road that goes to the
Akemi district of Toyohashi City, which today is lined withwarehouses. It is not a very wide area, but when we thought
about how founder Yoshiharu Otsuka and his employees
restarted the plant in this place after WWII, the landscape took
on a different meaning. We hope that the Musashi employees
who are going to the Akemi district take a detour out this way
when they have the time.

■ 51 Kita-Deguchi, Osaki-cho, Toyohashi City, Aichi Prefecture

Near the plant in Osaki

Former site of the plant

The theme of this company history is “Legacy of the Past, Vision of the Future.” We wanted to create
a company history worthy of this theme that everyone would read. We tried to include as many period
photos as possible with brief descriptions to communicate Musashi’s history. We also tried to do some newthings not typically found in company histories, such as a special section featuring an interview with young
employees and specialized visuals to introduce global Musashi locations. We felt this embodied the Musashi
DNA of “Be Unique!”
The first company history of Musashi was published for the 55th anniversary. This is the second editionof the company history. Sifting through a massive about of documents to verify facts took a lot of timeand effort in the first company history, and this time was no different. In the middle of this work, we visited
Musashino City to ascertain the exact location where Musashi was founded, and we met someone who
remembered the plant and got to listen to his precious stories from that time. This was one of the mostmemorable experiences we had in putting together the company history.
We also interviewed Musashi colleagues from around the world as part of the editing process, and they
helped us confirm materials and create related documentation. This company history has been made possible
with their generous support, and creating this book has been a valuable experience that exemplifies thepower of One Musashi. We would like to take this opportunity to thank everyone for their cooperation andsupport. To all the future members of the Musashi Group and the next members of the Company History
Compilation Project, we hope that you continue to carry on this power.
The members of the 80th Anniversary Company History Compilation Project“Location connected to Musashi(company name): Musashino”

Hitoshi Iguchi, a friendly and helpful local
resident we met in Musashino

Date of visit: July 20, 2018
On the same day we visited Togoshi, we also visited Musashino,which is where Musashi takes its name from. Unlike the Togoshi
neighborhood, there was little information about the former siteof the plant here, and all we had to work from was the recorded
address. We contacted the Musashino City Hall beforehand to findout the current location of the former address (special thanks to
the officials at Musashino City Hall for their assistance). We
learned the approximate location of the address along the street,
but we were still unsure if the location was correct. Fortunately,
we met a longtime resident of the area who was able to tellus the exact location of the former Otsuka Seisakusho andOtsuka Aviation Industry. We were also able to find theformer location of OSG Grinding Co., Ltd. (currently
OSG Corporation), which was located next to Musashi.
■ 3-3 Yahata-cho, Musashino, Tokyo

We members of the company history project were wandering
around the vicinity of the former Musashi plant in Musashino
trying to find its exact location. We stopped to talk to a
local resident. We were told that local person of note Mr.
Iguchi may know where the Musashi plant was located andwent to visit him.
Hitoshi Iguchi, 83 years old. When we asked him about
Otsuka Seisakusho, he remembered where it was and told
us that the plant was located “just over there.” We were
in awe that he could show us the exact location. He then went
on to tell us stories from back when Otsuka Seisakusho was
operating there and what it was like during the war.
Mr. Iguchi, thank you very much for your help andkindness.

The 80th Company History Compilation Project
Hirokuni Shimizu
Project leaders
Seiji Tsuyama
Project members

Shigenobu Matsumiya
Satoshi Kanada
Motoko Nakanishi
Yukari Kobayashi
Support from
<Retired Members><Directors & Officers>
Toru Shimizu
Ikuo Makino
Mitsutoshi Sugai
Yang Xiaoyang
Takayuki Miyata
Takashi Soda

<Employees>

Naohiro Takamori
Naoya Nishimura
Kazuhiro Jige
Kinya Kawano
Takayuki Kano
Musashi Group Members<Materials provided by>Near the plant in Musashino

Former site of the plant

80-Year History of Musashi

Mr. Iguchi’s home

- 192 -

Shinonomeza Co., Ltd
Development Center for Children’s Futures(Coconico), Toyohashi City

Hitoshi Iguchi (left)- 193 -

80-Year History of Musashi

Legacy of the Past, Vision of the Future
80-Year History of Musashi Seimitsu Industry
Edited by the 80-Year Company History Compilation Project,
Musashi Seimitsu Industry Co., Ltd.
Published by Musashi Seimitsu Industry Co., Ltd.
39-5 Daizen, Ueta-cho, Toyohashi, Aichi
Published January 1, 2019
Printed and bound by Kyodo Printing Co., Ltd.
Reproducing, copying, or reprinting this document, in whole or in part,is prohibited without express written permission