MMRCDISCUSSION PAPER SERIES
No. 402

The transferability of Japanese production system in Zimbabwe:
A case study of Willowvale Mazda Motor Industries
Chenghua Yu
Manufacturing Management Research Center
Faculty of Economics, the University of Tokyo, JapanMay 2012

東京大学ものづくり経営研究センター
Manufacturing Management Research Center (MMRC)
Discussion papers are in draft form distributed for purposes of comment and discussion. Contact the author for
permission when reproducing or citing any part of this paper. Copyright is held by the author.
http://merc.e.u-tokyo.ac.jp/mmrc/dp/index.html

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The transferability of Japanese production system in
Zimbabwe：
A case study of Willowvale Mazda Motor Industries

Chenghua Yu

Manufacturing Management Research Center
Faculty of Economics, the University of Tokyo, Japan
Abstract
The purpose of this paper is to investigate to what extent the Japanese production system can betransferred to Zimbabwe by looking at a specific case of Willowvale Mazda Motor Industries. Firstly, themajor political and economical factors of Zimbabwe are introduced. Secondly, major findings ontransferability of the Japanese production systems to Zimbabwe are presented and discussed based on a
specific case of Willowvale Mazda Motor Industries in Zimbabwe. Finally, some implication andrecommendations for Japanese companies who are going to start a business in Zimbabwe are presented.

Keywords: Japanese -style Management, Production System Transfer, Education & Training, Labor
Union

1. Introduction
The global remarkable rise of crude oil and mineral resource price casts a shadow
over the world economy. The world demand for energy resources is increasing, andall the countries of the world make efforts to strengthen their strategies for
ensuring the long-term stability of resources. Meanwhile, it is Africa to attract
attention as a new resource market. Africa is a treasure house of oil, natural gas
and mineral resources including platinum, chrome and cobalt. In recent years,

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emerging economies such as Brazil, Russia, India, China, (BRICs) have been
starting to compete for the resources in Africa. The Japanese companies are actively
involved in large-scale development projects such as chromic development(Mitsubishi Corporation) in South Africa, nickel cobalt metal development (Sumisho
Corporation) in Madagascar, liquefied natural gas (Mitsui Corporation, Marubeni
Corporation) in Equatorial Guinean, the aluminum refinement (Mitsubishi
Corporation) in Mozambique. The employment is created by such these hugedevelopment projects, which are giving a big impact to the local economy.
In addition to competition over massive natural resources in Africa, rise in oil
price provides an additional income to the African continent. It is deemed that
African economy will continue to grow rapidly in near future. As a consumer market
in the lower and middle class expands in Africa, foreign companies are trying to
attract those clusters. When they are asked regarding the Japanese vehicle,
machine and electronic products, the reputation of Japanese products in general isremarkably good. Africa is now strongly hoping to get the cooperation from theJapanese companies and to learn the know-how of Japanese style quality
improvement systems. Facing various problems such as infrastructure deficiencies,
high literacy rate, poverty, and HIV, Japanese companies particularly
manufacturing industry are facing challenges with establishing the production
bases and logistics in Africa.
In order to determine how Japanese style management and production system istransferred to Africa, Japanese Multinational Enterprise Study Group (JMNESG,
represntative: Professor Tetsuo Abo) conducted a field research. The data werecollected from Japanese companies, some foreign companies and local companies inAfrica. JMNESG analyzed the transfer of Japanese-style management andproduction system qualitatively using "Hybrid Analysis Model of ApplicationAdaptation” (See the endnote 1：Application-Adaptation Hybrid Evaluation Form (6groups and 23 items)) .
When we researched the southern part ofAfrica from the middle of September

until the end of August,2010, JMNESG visited the Willowvale Mazda Motor
Industries (PVT) Ltd, in the Republic of Zimbabwe on September 6 (See the endnote
2).
This paper is aimed at describing the transferability of the Japanese production
system based on the case study at Mazda Motor’s Zimbabwe joint venture plant.
The data was mainly collected based on interviews with local managers andobservations. This paper is organized as follows. In the next section the major

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political and economical factors of Zimbabwe were analyzed. Then a briefchronological outline of Mazda in Zimbabwe is described. This is followed by somekey findings regarding the degree of transfer of Japanese production systems to
Willowvale Mazda Motor Industries. Finally the conclusions.
2. General Political and Economical Conditions in Zimbabwe
Zimbabwe is a republic in the southern part of Africa with Harare as its capital. A
landlocked country, it is bordered by Mozambique, Zambia, Botswana and theRepublic of South Africa. The country has attracted worldwide attention as a resultof violent political, social and economical changes in the wake of its independence in1980. This section will give a short outline of Zimbabwe’s political system andeconomy.
1) Political environment
Zimbabwe saw the advent of an independence movement driven by black Africans
in the 1960s. Ian Smith, Prime Minister of the colonial government, had, amidst
worldwide condemnation, pressed forward with his racially discriminatory policy
after declaring the independence of the white-dominated Rhodesian Republic. In
response, the black population began a guerilla warfare aimed at overthrowing theSmith regime and establishing a state under a black government, but the
Rhodesian conflict was brought to a conclusion after an agreement brokered by the
British government, assigning whites a fixed quota of 20 out of 100 parliament
seats. The general elections held in 1980 led to the birth of the Republic of
Zimbabwe, and Canaan Banana was appointed as its first president, while Robert
Mugabe became the first prime minister. In 1987, Mugabe abolished theparliamentary cabinet system and post of prime minister, introduced a presidential
system of government, and appointed himself as president. Until 1999, the economy
developed smoothly after the Mugabe government, shaking off its colonial past,
initially pursued a reconciliation policy between whites and blacks, and promoted
educational policies and the establishment of a social infrastructure. At first, thecountry was called a ‘nation–building model’ and ‘honor student’ among other
African nations. In August 2000, however, Mugabe dealt a serious blow to thecountry’s white–led agriculture by initiating the ‘Fast Track’ land–reform revolution,
whereby white–owned large–scale farms were forcibly appropriated and4redistributed among farmers and others. Presidential elections in March, 2002 were
fiercely contested between President Mugabe, at the head of the ruling Zimbabwe
African National Union–Patriotic Front (ZANU-PF) party, and the leader of thelargest opposition party, Movement for Democratic Change (hereunder, MDC).
Although President Mugabe was reelected, the country was thrown into disorder by
the ensuing animosity between the ruling and opposition parties. Amidst
allegations of election fraud, the British Commonwealth suspended Zimbabwe as aCouncil member for the duration of one year. International relations deteriorated as
the EU and USA imposed sanctions, such as a travel ban for government officials
and the freezing of assets. Moreover, in June 2003, the government deployed its
security troops against a large–scale anti–government demonstration organized by
the MDC, and took other forcible measures such as the arrest of the MDC party
leader. At present, Zimbabwe remains under the rule of the Mugabe administration.
2) Economical environment
The social infrastructure of Zimbabwe is relatively well developed and the country
is rich in mineral resources, such as gold, platinum and diamonds. With its
agricultural, manufacturing and mining industries evenly developed, the country
was once called ‘the breadbasket of Africa’. Between the years 2008 – 2009 however,
7 million Zimbabweans had to rely on food aid from the international community asa result of expropriation, drought and inferior governance. With a dwindling supplyof foreign currency due to the weakening export, and the decline in production of
cash crops as a source of foreign currency revenue, the increasing difficulty ofimporting fuel, electricity, machinery, components and building materials for
production facilities, has seriously affected the agricultural, manufacturing andmining industries. Although the economy is, by abandoning the national currency,
to some extent recovering when compared to the period of hyperinflation, economic
activities and the life of the citizenry continue to encounter great difficulties as the
economy is caught up in a vicious circle, due to the ever–increasing lack of foreign
currency and other factors. As far as the financial situation is concerned, personnel
expenses made up 60% of the government budget for the first half of 2009, while thebudget directed towards investment expenditure is extremely limited. Time will be
required for a recovery of economical self–reliance, as investment on the private
sector level presently remains at a standstill. On January 29, 2009, theZimbabwean government abandoned the Zimbabwean dollar which had become

5irrelevant, and instead began paying even the salaries of public servants in US
dollars, after officially allowing the domestic circulation of the US dollar and South
African rand (Asahi Shimbun, January 30, 2009). As a result, the country’s
hyperinflation came in dramatic fashion to an end, and, according to thegovernment, commodity prices for March, 2009 fell by 0.8% compared to those ofJanuary of the same year. However, under the present circumstances, prospects forrebuilding the economy appear bleak, with unemployment figures reaching 94%
according to UN estimates.
3. Historical Outline of the Automobile Business and Company Profile
Mazda Motor Corporation is developing its automotive business in Africa together
with the Ford Motor Company, with which it had a joint venture relationship. The
factories producing the Mazda brand cars are the 100% Ford–owned Ford Motor
Company of Southern Africa (Pty) Ltd. in South Africa, and the state–owned car
assembly plant Willowvale Mazda Motor Industries (PVT) Ltd(hereunder WMMI),
25% owned by Mazda Motor, in the Republic of Zimbabwe (hereunder abbreviated to
Zimbabwe). These two companies form the production bases on the African
continent in the framework of Mazda Motor’s global expansion activities.
WMMI took over a plant built by Ford Motor Company. In 1961, Ford Motor
Company of Canada started producing Ford cars, after setting up a plant for thethen Federation of Rhodesia and Nyasaland. The plant was compulsorily shut down
for political reasons when the white minority government unilaterally declared
independence in 1965. IDC (Industrial Development Corporation) acquired theplant in 1967. A great variety of models were produced in the plant, with anallocation of foreign currency provided by the Zimbabwean government for theimport of car components. In addition to tractors, Toyota, BMW, Peugeot, Citroen,
Nissan (Datsun), Scania, Renault, Bedford and Alfa Romeo cars were assembled ona consignment contract basis. In July, 1980, a beginning was made with the
production of Mazda cars.
In 1986, the Zimbabwean government announced an automotive industry
integration plan. IDC started looking for a technical partner capable of providing
technical knowhow and products, as a shortage of foreign currency forced thecompany to limit production. In 1989, the Japanese Mazda Motor Corporation was
selected as technical partner. A joint venture was agreed upon and signed with,amongst others, Motec Holdings (a subsidiary of IDC) and Itochu. The respective

6

ownership percentages in this new Willowvale Mazda Motor Industries (PVT) Ltd.
joint venture are: Motec Holdings 58%, Mazda Motor 25%, Itochu 8% and Worker’s
Trust 9% (Fig. 3 – 1) . The president is a Zimbabwean citizen. The plant produces
only Mazda models, more specifically, the two models BT50 and Mazda3. At thesame time, the plant also imports and sells the Mazda CX–9 model. In this way,
WMMI became a KD (Knock–Down) type plant featuring the assembly of only
Mazda cars, and providing sales and after–sales service.
Fig. 3-1 Investment Ratio in WMMI

Motec Holdings

9%

Mazda

8%

25%

58%

ItochuWorker'sTrust
Source:created by the author, based on the WMMI home page.

In the 1990s, the Zimbabwean economy was doing so exceptionally well that it wascalled the ‘Honors student of Africa’. At that time, the market for new cars was on ascale of 25,000 units per year. WMMI, which had formed its joint venture against
this historical background, invested in the assembly of engines, began in–houseproduction of engines, installed welding and painting equipment, and developed
into a plant capable of assembling a maximum of 10,000 units per year. In the 90s,
WMMI produced annually 9,000 units.
WMMI, established in 1989, was at the time of our visit in 2010, in its 21st
operational year. Although the company, with the support of Mazda, had steadily
expanded its production, and at one time in 1997 boasted 2,000 employees,
production started decreasing after 2000, as a result of the deterioration of theeconomic environment due to political factors. The company was moreoverburdened by a huge unsold stock. As car components had become unobtainable due
to a shortage of available funds, notably foreign currency, production was halted forthe duration of 9 months in 2000. Thereafter, some signs of recovery were being
seen. However, from February until September 2010, production was again halted.
Production was once more restarted but remains at a level of 5 units per day. Due to7

the limited availability of data, results for the post–2003 period have beensummarized as shown in Fig. 3 – 2.

Fig. 3 – 2 Changes in Annual Vehicle Production (Units)

Number of Units

2,500

2,320

2,000
1,611
1,500 1,320

1,463

1,213
926

1,000

911

500
0
2003

2004

2005

2006

2007

2008

2009

Source: figure created by author, based on the Mazda Motor Company Profiles forthe years 2003 – 2010.

4. Analysis of the Hybrid Management at WMMI
WMMI is situated in a section of the Willowvale Industrial Park, about 11km
south-west of Zimbabwe’s capital Harare. At present there are no Japanese
representatives at WMMI. Our interviewees during our visit in September, 2010,
were the managing director, the manufacturing director and the sales andmarketing director, all of whom native Zimbabweans. They were extremely capable,
and also very knowledgeable about conditions in the plant. Although production at
the plant had unfortunately been suspended at the time of our visit in 2010, wewere given a tour of the production facilities. We were also provided withwell–informed answers to our interview questions, and to the questionnaire sent inadvance. This paper relies to a great extent both on the answers formulated by the
manufacturing director, and on the interview (Fig. 4 – 1). We will hereafter explain
the six groups established by the Japanese Multinational Enterprise Study Groupin the following order: 1) Job organization and administration,2) Production
management, 3)Procurement of parts and components ,4) Group consciousness ,5)Labor relations,6) Parent-subsidiary relations.

81) Job organization and administration
Job classification at WMMI is the job classification system as seen in Europe. It
consists of 6 grades from A to F, respectively subdivided into a number of levels.
More specifically, A1, A2, A3 are unskilled operators, levels from B1 to B5 aresemi–skilled operators, C1 to C5 are skilled operators, D1 to D5 management, E1,
E2 are executive management and F1, F2 top management. Of these, grades A, B, C
are labor union members, whereas grades D, E, F are non–union. Positions above
supervisor (hereunder, SV) are not a target for labor unions. For example, operators
are grade A, maintenance personnel grade B. Grading is enacted by a grading
committee consisting of people recommended, not by the labor union, but managers
and workers. Although appraisal of performance in relation to the group (line) is
carried out 4 times a year to determine wages, assessment of individuals is not.
Grades are therefore raised mainly on the basis of the number of years of
employment. With regard to promotion, employees apply upon recommendation by
a SV when a post becomes available. Promotion is conferred in stages byrecommendation of the applicant to a top manager, after an interview by the
personnel department. A SV is therefore promoted internally and this promotion,
moreover, has no ceiling. The company also supports employees who want tocontinue their education at university.
Fig. 4 – 1 Outline WMMI Plant
Company Name

Willowvale Mazda Motor Industries

Visit Period

September 6, 2010

Operation Start–Up 1961 (Joint Venture: 1989)
Investors–

Motec Holdings 58%, Mazda 25%,

Investment Ratio

Itochu 8%, Workers’ Trust 9%

Plant Site Area

162,000 ㎡

Building Area

38,000 ㎡

Main Production

Mazda 3, Mazda BT50

Items
Production

9,880 units (40 units/day)

Capacity
Units Sold

1,115 (2009)

Domestic Share

35%

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Export Destinations Mozambique, Zambia
Number Employees

204

Japanese

Nil

Annual Operating
Days
Annual Operating
Hours
Individual Annual
Working Hours

247
445,835
2,185

Sources: on–site interviews, data provided by company.
As for on–site management, one SV typically manages 5 workers, depending on the
manufacturing process. The functions of a SV comprise quality control, complaint
processing, maintaining discipline, the authority to position workers, implementing
team management and holding the daily morning meetings. The process ofmulti–skills development gives the impression of being implemented to aconsiderable degree. In other words, during the same manufacturing process, bothjob rotation (JR) and the training of multi–skilled workers were being implemented.
During the welding process, for example, 7 workers carry out the welding of trucks
and passenger cars. All of them can switch position within the welding process. 4S(seiri = order, seiton = neatness, seiketsu = cleanliness, seisou = cleanup) boards
and training score tables (skill matrix) for each individual worker were especiallyposted at the engine job with its 2 assembly lines, the engine line and gearbox line.
Arrangements were made so that employees could perform any kind of work within
the engine job. This leads us to the conclusion that enlightening activities are being
actively directed at the employees, in order to improve production efficiency andquality, and make the working site into a pleasant and also safer place.
2)

Production management

The plant was not in operation at the time of our visit to WMMI on September 6,
2010. According to our guide, resumption of production was scheduled for the
coming week (resumption of production actually took place one month later, on
October 5). As stated before, car models produced at this plant are, as for the Mazda
brand, the Mazda3 and BT50. Although capacity allows for a daily production of 40
units, generally about 5 units are produced. 20 units are considered one lot, and the10plant produces alternately one lot of passenger cars and one lot of trucks
respectively over a 4–day period. The assembly process requires 40 employees. In
2008, the company obtained its ISO 9001:2000 Quality Management System (QMS)
certification. WMMI is a plant of the KD type and consists of welding, painting andassembling shops but lacks a press shop. Moreover, the plant also comprises anengine assembly section, components warehouse, maintenance section and training
section. Upon becoming a joint venture in 1989, a considerable quantity of
production equipment from the Ford period was taken over. As a result, theproduction equipment mainly consists of pieces inherited from the Ford Motor
Company of Canada. By and large, the number of Japanese –made pieces ofequipment amounts to 10–15%. Amongst these, the welding gun used in thewelding process is Japanese–made. The design for the welding jig and the assembly
system are created by Mazda.
Factory facilities consist of: welding (metal finish) – paint shop – trim andmechanical – chassis –final inspection finish process (final area). More concretely,
the jigs for the welding (metal finish) process have been mainly built upon a Mazda
design in South Africa and South Korea, with some coming from the UK. However,
the jigs used for the Mazda BT50 were built by WMMI. Mainly simple equipment isused in the painting process, the greater part being done by hand. The process
consists of 3 lines: primer – base coat – clean coat. The whole assembly process isdone by hand. However, conveyance during the process is partly done on a line,
partly by manual pushing.
Maintenance work at WMMI is specialized. Ordinary workers are not expected toplay an important role in maintenance, nor are there plans for the future, toincrease the involvement of ordinary workers in maintenance. There are two waysof recruiting maintenance personnel. One is recruitment upon graduation fromcollege, the other upon obtaining qualification at college subsequent to workplace
training.
３) Procurement of parts and components
Until the 90s, Zimbabwe was, of all African countries, the country that put mostemphasis on its manufacturing industry. Zimbabwe, South Africa and Mauritius
were called ‘The Big Three’ among the African industrialized countries (Japan
International Cooperation Agency, March, 1989). In the framework of thisindustrial infrastructure, WMMI increased its ratio of domestic procurement ofparts and components to 20%. This, however, dropped to a 5% level as the economy

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kept deteriorating after 2000. Components once locally procured – batteries, roofs,
carpets, door panels and sheet metal – are no longer procured at home. On thecontrary, the company presently relies for 95% upon imports from abroad for its
components. According to our guide at the time of our visit, Itochu had halted theimport of components because of a six month arrears on payments, due to theshortage of foreign currency. In the end, the plant had no choice but to halt
production from February to September, 2010. As long as the business environment
does not improve, there is no prospect of any change in the present ratio ofdomestically procured components. To increase this ratio could be called a major
challenge for WMMI, while it will also be the key to the company’s future expansion.
４）Group consciousness
Small–group activities are not implemented, a fact resulting from historical factors.
In 1991, over a period of ten weeks, WMMI held QC circle activities, using a
training program of the Association for Overseas Technical Scholarship (AOTS).
These activities were, however, terminated, as they produced almost no results.
There were two reasons for this outcome. First, the participants demanded financial
compensation, and second, the activities failed to effectively produce results due tothe cultural differences between Japan and Zimbabwe.
The sense of togetherness among employees is average. Although employees do notwear identical corporate clothing, they organize joint activities such as Christmas
parties. The company also owns a soccer team that belongs to the Harare League.
When telling the president we had heard of the African brotherhood in Africa andthe cooperation among employees, and asked whether this was working, the answer
was that the African brotherhood would recover once business had recovered.
As for information sharing, a morning meeting is daily held at the plant. There arealso various other meetings, such as section meetings to validate specific issues, andmeetings among sections.

5)

Labor relations

WMMI has principally always maintained a long–term employment policy. Manyamong the current employees have been employed for a period of 30–40 years.
However, from the end of 2000, faced with a deteriorating Zimbabwean economy
and a huge stock of finished products, the company had no choice but to lay off
employees. The number of employees fell from 550 to 220, and this brought the12monthly production capacity down from the former 600 units to 140. The number of
employees was reduced, first by dismissing temporary workers, next by encouraging
regular employees to take early retirement. The early retirement option was put
forward on condition of accepting a severance payment, amounting to two months’
wages and dependent upon the period of continuous employment. The labor unions
occupied the plant for 2 days in reaction to the job termination and early retirement
plans advanced by WMMI.
However, relations between labor and management have been good over the pastten years. At wage negotiations, automotive industry executives and industrial
unions establish wage grades and grade–specific minimum wages. On this basis,
duty assignments and amounts payable are decided according to grade, by theworks council at the plant. Labor unions are, in principle, not in charge of wage
negotiations at the plant. However, the company has held weekly and monthly wage
negotiations with the unions during the period of hyperinflation. This was due tothe fact that hyperinflation made it impossible for the workers to meet their living
expenses.
６）Parent-subsidiary relations
Mazda and Itochu do not directly control WMMI. The parent company Motec
Holdings dispatches a CEO and manages WMMI. For 2 years, from 1998 to 2000,
two representatives from Mazda and one from Itochu were sent to WMMI. The
Mazda representatives were in charge of on–site technical instruction andinformation liaison with the Japanese parent company in the function of line
manager and advisor. In this way Mazda fulfills the function of providing technicalassistance supporting the plant system and product quality of WMMI. It also sends
personnel when required at the plant (on occasions of improvements or modelchanges). The representative from Itochu on the other hand, was responsible fortransmitting orders for components from WMMI. At this moment, there are no
representatives from either of the companies. There was however one
representative from Itochu at the parent company, Motec Holding. Mazda Motors ispresently not directly involved in the WMMI management. On the other hand,
important matters resolved by the WMMI board of directors are reported to andapproved by Mazda Motors.
5. Conclusions

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So far we have considered six aspects of the WMMI plant: Job organization andadministration, Production management, Procurement of parts and components,
Group consciousness, Labor relations, Parent-subsidiary relations. We would
like to summarize those points which have become clear in this paper.
First, we will consider the transfer of production system from Mazda. Mazda
transferred its own production management style to WMMI after establishing thejoint venture in 1989. Part of this is to be seen in the English language edition of
Mazda’s ‘Quality Standard’ which was observed in the reception room where theinterview took place, and the 4S–boards and training score tables (skill matrix) inthe engine assembly area. A multi–skills development program was being actively
implemented on site, as there is a need to widen the range of operation of eachindividual worker in a KD plant. In this fashion, even though a KD plant offers only
limited possibilities, the local managers were implementing the Japanese system
within a feasible range. On the other hand, due to difference in culture, there werealso parts which proved impossible to transfer smoothly. QC circles are
non–existent. In the near future, improvement activities will doubtlessly become
essential when expanding the scale of operations and production capacity.
Second, the need exists for an automobile industry promotion policy by thegovernment. WMMI is for 95% dependent upon imports for its components.
Moreover, import taxes are high. Consequently, assembling costs of the cars mount,and there is no other way but to pass these on to the selling price. WMMI istroubled by the import of cars from South Africa and of used cars from abroad. This
import from South Africa is the export to Zimbabwe by European, American andJapanese car makers who reap the benefits of the automobile preferential export
tax policy of the South African government. There is also the import of used cars.
Used cars imported from Japan, at prices 30% lower than those of new cars, are athreat to WMMI. WMMI therefore expects the government to raise import tariffs,
and to increase domestic self–sufficiency in components, while assessing therecovery of the economy.
Notes
(1)

Application-Adaptation Hybrid Evaluation Form (6 groups and 23 items)

a. Job Organization and Administration
1. Job Classification
2. Job Grades and Wage System
3. Multi-functional Skills

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4. Promotion
5. Training and Education
6. First-line Supervisors (or Team leader)b. Production Management
7. Equipment
8. Quality Control (QC)
9. Maintenance
10. Operations Managementc. Procurement of Parts and Components
11. Local Content
12. Suppliers
13. Methods

d. Group Consciousness
14. Small Group Activities
15. Information Sharing
16. Group Consciousness

e. Labor Relations
17. Hiring Policy
18. Job Security
19. Labor Unions
20. Grievance Procedures

f. Parent-Subsidiary Relations
21. Ratio of Japanese Expatriates
22. Delegation of Authority
23. Position of Local managers(2)

Our research group revisited and investigated the same plant in September,2011. As production had been restarted at this point, we were able to obtain aconsiderable amount of new data unavailable during our investigation in 2010.
This paper does not reflect the results of the 2011 investigation.

15

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