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

Akio Toyoda, left, and Masamichi Kogai shakehands for the first time since May 2015

Toyota, Mazda form capitalalliance on common view
toward car making
Toyota Motor Corporation and Mazda Motor
Corporation have entered a capital alliance after
two years of collaborative discussions. Amid thegrowing number of newcomers like U.S. IT giants
to next-generation mobility, Toyota and Mazda
have found that they share a common passion formaking better cars. Highlights of their agreement
include the establishment of a joint venture toproduce vehicles in the U.S., jointly develop
electric vehicles (EVs), and maintain an equal
partnership.
Different from alliance with Subaru
In October 2005, Toyota formed a capitalalliance with Fuji Heavy Industries Ltd. (currently
Subaru Corporation), and Toyota began to produce
the Camry at Subaru of Indiana Automotive, Inc.
(SIA) in the U.S. The two companies recognized asynergy from the beginning of the partnership. In2008, they entered an agreement for joint
development of the front-engine, rear-wheel drive(FR) sports car, the Toyota 86/Subaru BRZ, forCO2 Reduction Effect(based on JARA System)

The use of Reuse Parts saved

2,500 tons of CO2 emissions
in July 2017
The reference figure represents the difference of carbon
dioxide (CO2) emissions at the vehicle repair using
genuine (new) parts and recycled parts.**: Based on "Green Point System", which was jointly
developed by the Japan Automotive Parts Recyclers
Association and Waseda University Environmental
Research Institute using a life cycle assessment (LCA)
technique.

which it is difficult to obtain a profit by a single
carmaker. As a result, the two companies havebuilt a positive relationship.
The Toyota-Mazda alliance also relies on thesame tactics as those used in the Toyota-Subaru
alliance: vehicle production in the U.S. and joint
development of difficult-to-be-profitable EVs.
There is a difference, though, between the ToyotaMazda and Toyota-Subaru alliances. Subaru
accepted a capital injection from Toyota, a newparent in place of the struggling General Motors.
However, Mazda and Toyota will take equal stakesof 50 billion yen each. Toyota showed its respect
for Mazda’s efforts toward car making after it
broke away from Ford Motor Company.
Serious about working together
Toyota Vice President Shigeki Terashi said at apress conference held on August 4, in Tokyo, “Theagreed items suggest our resolution in a reallyserious manner to go together in the future. An
equal stake is one evidence.”
The U.S. joint venture will have an annual
production capacity of 300,000 vehicles, with acapital investment of USD$1.6 billion. Toyota
plans to produce the Corolla using one assembly
line, whereas Mazda will make a new crossovermodel for the U.S. market starting in 2021. For theU.S. market, Mazda currently exports its vehicles
from Japan and Mexico. The company now
captures a sustainable growth with local
production in the U.S.
The development of EVs is an urgent issue forthe two carmakers. Even Toyota, which produces
10 million vehicles per year, has not engaged inmass production of EVs. Environmental
regulations in China, India, the U.K., and France
are moving toward greater production of EVs.
“Not only for hardware but also for software forvehicle controls, we will jointly develop a platform
for EVs, ranging from under 660cc engineminivehicles to light trucks,” said Terashi.
Welcoming newcomers from another industry
Naming Google, Apple, and Amazon, Toyota
President Akio Toyoda welcomed them with
“Carmakers cannot make the future alone.” At thesame time, he insisted, “We have a proud and long
history of supporting the mobility society.” Mazda
President Masamichi Kogai also stressed, “For thenext 20–30 years, Mazda will continue to build asmall but independent brand by bringing exitingcars.” The common view toward cars is the base of
the two carmakers’ alliance (Daily AutomotiveNews, August 7 issue).

Mazda to introduce compression ignition
gasoline engine "SkyActive-X" in 2019
Mazda Motor Corporation announced on
August 8 that it will introduce the next-generation

September 2017, No. 115

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

Mazda Predisent Kogai at the press
conference on August 8

gasoline engine “SkyActive-X” featuring theworld’s first commercial use of compression
ignition (CI). Homogeneous charge compressionignition (HCCI) technology was employed. Mazda
developed the new engine using its proprietary
method called Spark Controlled Compression
Ignition (SPCCI).
SPCCI overcomes two issues that have
impeded commercialization of compression
ignition gasoline engines: maximizing the zone inwhich compression ignition is possible andachieving a seamless ignition and spark ignition.
The new engine is expected to help fueleconomy by approximately 20–30 percent
compared with the conventional engine-poweredvehicle. Compression ignition and a supercharger
together to improve fuel economy together deliver
unprecedented engine response and increase
torque by 10–30 percent over the current
SkyActive-G gasoline engine. SkyActive-X evenequals or exceeds the latest SkyActive-D diesel
engine in fuel efficiency. Compression ignition
makes possible a super lean burn that improves
engine efficiency up to 20–30 percent over thecurrent SkyActive-G.
Mazda’s Director Kiyoshi Fujiwara said, “CI in
the gasoline engine is an ideal that engineers in
the world pursue. Nothing can beat it as
combustion technology. The big advancement has
been completed.”
The carmaker also disclosed its long-term
vision. It aims to reduce corporate average “wellto-wheel” carbon dioxide emissions to 50 percentof 2010 levels by 2030 and achieve a 90 percent
reduction by 2050. In line with this policy, Kogai
said, “we will continue efforts to perfect theinternal combustion engine, which will help
power most of cars worldwide for many years tocome.” The carmaker, beginning in 2019, will
start introducing EVs and other electric drive
technologies in regions that use a high ratio ofclean energy for power generation or that restrictcertain vehicles to reduce air pollution. Mazda
will also begin testing autonomous driving
technologies currently being developed in linewith the company’s human-centered Mazda
Co-Pilot Concept, in 2020, aiming to make thesystem standard equipment by 2025 (Daily
Automotive News, August 9 issue).

JARA NEWS No. 115 September 2017 Page 2

San tools expand subsidy program
According to the transport ministry, applicantsseeking subsidies for purchasing scan tools (vehiclediagnostic devices) are increasing. As of August4, applications totaled 201 since the program waslaunched on July 24, already exceeding the 10
percent range of the budget. The raised upper limit
for subsidies and the addition of tablet-linked typescan tools for coverage might have contributed to theincrease.
Inter Support Co., provider of the general purpose
scan tool “G-Scan,” attributed the increase to therise in the upper limit of coverage under the subsidysystem. The company offers relatively expensive
products, whereas others mostly sell low-priced scan
tools focused on simple and limited maintenancework, such as oil refills and battery replacement.
The adoption rate of scan tools by car repair shops inJapan has achieved 80 percent.
In this fiscal year, the Ministry of Land,
Infrastructure, Transport and Tourism (MLIT)
widened coverage of the subsidy program to include
tablet-linked scan tools in addition to single-purposetools. The tablet-linked types are easy to use and canoperate wirelessly. This is the fifth launch of MLIT’s
subsidy program, indicating that the ministry eyes thecar repair industry as one that will continue to spendmoney on such tools to keep pace with advanced
technologies in new vehicles. The installation rate forautomated brake systems (collision impact mitigatingbrakes) in approximately 40 percent of all newvehicles at present is expected to reach nearly 100
percent in 2020.
Vehicle technologies are advancing rapidly.
Toyota launched the second-generation Prius PHV
in February 2017, and Nissan will release the fully
redesigned LEAF electric car equipped with anauto parking feature in September 2017. MLIT
aims to support the technological capability of car
repair businesses, especially independent shops,

Tablet-linked scan tools areincluded in the subsidy programHybrid vehicles represent a very small partof total ELVs today. The market share forhybrids will certainly increase in the future.

by launching the scan tool subsidy program (Daily
Automotive News, August 8 issue).

Hybrid vehicles increase in
ELV acceptance
The acceptance rate of hybrid vehicles to total
acceptance of end-of-life-vehicles (ELVs) was 0.26
percent in 2016– a very small part of total ELVs
for now. However, considering that 20 years havepassed since the first hybrid car–the Toyota Prius–wasreleased in 1997, the number of hybrid ELVs is highly
likely to increase year by year, as the average lifespanof an ELV is approximately 15 years. For recycling
businesses, the ability to recycle hybrid vehicles(i.e., dismantling and producing recycled parts) is
becoming inevitable.
The number of accepted hybrid ELVs was 8,179
units in 2016, up 39.4 percent from a year earlier.
Of that, over 1,000cc engine hybrids represented
7,921 units, up 56.4 percent, and under 660cc engine
hybrids were up 56.4 percent to 258. Total acceptanceof ELVs identified as 3,096,790 units. Hybrid vehicles
accounted for 0.26 percent, up from 0.00 percent in
2007, 0.1 percent in 2014, and 0.19 percent in 2016.
The recycler group NGP held its 20th Hybrid
Car Seminar in mid-June this year to strengthen
knowledge and technology regarding hybrid vehicles(Daily Automotive News, July 28 issue).

Urawa Industry, a division of Matsui Universal
Joint Corporation, is a rebuilt parts maker of drive
shafts and power steering gears, and manufactureand sells CV outer joints. Matsu Universal Joint
Corporation supplies propeller shafts and universal
joints to carmakers. Urawa Industry is seeking valueadded products that surpass the genuine parts as wellas human resource development in the automotive
recycling industry, which is facing hard times.

for drive shafts,” said Tomonori Saotome, thedivision manager of the company. The auto recycling
industry is entering hard times. “To make mattersworse, the wind is against us. Materials of boots havechanged from rubber to plastics,” he added.
However, the company’s policy toward making
things has not changed. Saotome stated, “We don’t
want to make cheap products. We will continue
to make ever better products so that we can see
value-added products.” The company’s expertisein responding to carmakers’ requirements forhigh quality is seen in the aftermarket business.
Urawa Industry operates according to a completely
integrated set of work processes ranging fromresearch and design to development and production.

Never-changing attitude toward making things“The demand for our products is declining, even

In-house production even for replacement parts
For example, the company replaces all outer

Welcome to JARA Partner Rebuilt Parts MakerUrawa Industry, Matsui Universal
Joint Corp.

Building of Urawa Industry, Matsui Universal Joint Cooporation, left /robots introduced in the production process, center / The company
has begun rebuilding electric power steering gear, eyeing future
diffusion of next-generation technologies, right.

Most plastics are landfilled as
Automotive Shredder Residue(ASR).

MLIT, MOE to prolong launch of
eco-premium program

The transport and environment ministries decided
to prolong the launch of its Eco Premium Carprogram (planned launch was set for April 2018),
thereby reducing recycling fee of the car built fromnumerous recycled plastic parts. The program isexpected to start in April 2023.
The Ministry of Land, Infrastructure, Transportand Tourism and the Ministry of Environment havebeen discussing the program since last September
as one for which the Specific Purpose Recycling
Deposit is spent. Through this program, the buyerof a new car that uses lots of recycled plastics isexpected to qualify for a reduction of 10,000 to
15,000 yen in recycling fee.
I n a p a s s e n g e r c a r, a p p r o x i m a t e l y 1 5 0
kilograms of resin or plastics is used. Ultimately,approximately 320,000 tons are used each year.
However, the majority of such plastics are landfilled
as Automotive Shredder Residue (ASR). Only 5
percent of plastics are recycled. The ministries aim toreduce environmental stress and recyclers’ business
operations by promoting the use of recycled plastic
parts made from ELVs (Daily Automotive News,August 2 issue).
joints of drive shafts with new ones. It does not repolish outer joints to avoid problems with stiffness
and precision. All outer joints used for replacement
are manufactured by the company. “They feature theabrasion resistance property that exceeds the genuineparts.”
Furthremore, the company regards follow-up asa serious matter. “Our first priority is not to havethe customers factory operations stop. We deliverproducts to the site no matter how long it takes.”
Kindness and honest services may be attracting
repeat customers.
Urawa Industry is also active in human resource
development. The company encourages employees
to acquire qualifications for welding and operating
numerical control (NC) machines. It also has a staff
rotation system across working departments to foster
multiskilled employees. “Our company will becomea working team in which every employee is active
and has a working theme.”
Rebuilt parts for electric power steering (EPS)
The company has started manufacturing products
for next-generation technologies. “Electrification ofvehicles will progress and the parts will become few.
We need to respond to the trend,” said Saotome. The
company began making rebuilt parts of EPS gears.
“The situation might come in which we cannot dobusiness only with rebuilt parts. We must go with themindset of making parts” (Daily Automotive News,
August 17 issue).

JARA NEWS No. 115 September 2017 Page 3

Dismantling process flow chart
How the Car Dismantling machine works
1. Receiving andevaluating cars
Incomingvehicles tested
on dynamometerto check engine
condition

3. Parts collection

4. Collecting
undercarriage
parts and engines

Efficiently collectreusable parts

The car is turned to safely
collect engine, exhaustsystem and suspension parts

Remove fluids such as fuel, various types ofoil and chlorofluorocarbon gas

13CuAlCopperAluminium

63.546

Tyres

Batteries

DoorsSeats

Bonnets

ExhaustEngine Suspension

After treating, the scrap cars
are cut up and crushed orpressed into materials thatmeet industry needs

After pre-processing,
the car is sorted into raw
components such as
ferrous, non-ferrous andplastics
29

2. Collecting fuel, fluids andchlorofluorocarbon gas

6.Volume
reduction
processes

5. Car dismantlingprocess

Harnesses

MotorsRadiator

26.982Blocks of material can then be
distributed to smelting plants
for recycling

5. Processes
after removing
parts
Once thoroughly
cleaned, the parts
become good quality
recycled parts

The Evolution of car dismantling industry by Kobelco
Four times* the vehicle dismantlingcapability compared with hand dismantling.

EngineCatalytic
AgentsBody SteelSeats

Improved recovery
rate of rare earth metals
Windows26

1329

78

46

FeAl

CuPt

Pd

Iron

Aluminium

CopperPlatinum

Palladium55.933*In one day (Kobelco test figures)

15 vehicles >Wheels/Tyres

26.98263.546

195.08106.42

Separation of these valuable
materials is quicker and easierand can be performed with one
Kobelco machine.

Sus pension

One operative
working by hand.
Radiator

60 vehicles >One operativein a KobelcoCar Dismantlingmachine.

BrakesFront & Rear
Bumperswww.kobelco-kenki.co.jp/

www.samjung-kenki.co.kr/

KOBELCO CONSTRUCTION MACHINERY AUSTRALIA PTY LTD
www.kobelco.com.au/

FAIR FRIEND ENTERPRISE CO.,LTD.
www.ffg-tw.com/

The machine’s special attachment
is designed to strip materials from
End-of-Life Vehicles (ELV)safely and thoroughly
Transmission

For Japan

For Korea

For Australia

For Taiwan

Doors

Harnesses

www.kobelco-jianji.com/

www.kobelco-usa.com/

www.kobelco-europe.com/

For China

For North America

For Europe