JARA NEWSfrom
Japan Automotive Recyclers Alliancewww.jara.co.jp
To increase cooperation
with partner rebuilt parts
manufacturers

products to companies otherthan participating JARA
members. Thus, we need topresent a good reason for why
JARA should be the medium
through which buy suchparts.” (Daily AutomotiveNews, April 19 issue)

JARA denoting September
as"Rebuilt Parts Month"

METI hosts strategy
meeting for new
automobile era

As a measure to increase sales of rebuilt
parts, Japan Automotive Recyclers AllianceCorporation (JARA) has decided to brand
September 2018 as “Rebuilt Parts Month.”
Last year, JARA set its goal of a 10%
increase in the combined purchase of rebuilt
and new parts compared to the previousyear. Thus, the Rebuilt Parts Month has been
named as one of JARA’s efforts to meet thisgoal.
JARA President Sosho Kitajima said,“We want to comprehensively enhance sales
promotion activities, while also making sure
to be understanding of the needs of eachpartner manufacturer of such parts.” At
present, although the overall demand forrebuilt parts is high, the level of sales
remains “uneven among our membercompanies,” as acknowledged by Kitajima.
In order to address this issue, in 2018,
Kitajima began overseeing sales activities ofthe company. Shortly afterward, he branded
specified the Rebuilt Parts Month and began
initiating periodical sales campaigns, andorganizing seminars and workshops withmembers.
JARA is currently making operational
plans, developing ideas such as poster
creation, while making sure to accept ideas
from members. JARA is to have a planningmeeting in mid-June of this year. Thecompany received one opinion, which said,“Rebuilt parts manufacturers sell their

On April 18, the Ministry of Economy,
Trade and Industry (METI) held its “Strategy
Meeting for a New Automobile Era” in its
office. Minister Hiroshige Seko said, “To face
this revolution, we shouldn’t just focus on
defense. Instead, we must view this new era as
an opportunity to go on the offensive. Then, weproduce a reform. We will move to seek themeasures to achieve this goal by joining thepublic and private sectors.”
In addition to forecasts on battery
technology, the topics to be discussed include:
the recycling and reuse of batteries, themeasures to address issues related to thepricing and cruising range of electric vehicles(EVs) and battery-charging facilities, theeffects of EVs on parts and material industries,
and the efficient development of EVs throughmodel base development (MBD). Topics about
car sharing and trade policies will also bediscussed.
An interim report on the directions ofMay 2018, No. 123

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 4690Toyota Tsusho to collaborate with
Australian energy firm
Toyota Tsusho Corporation announced onApril 19 that the company, together with
EnergyAustralia, an electricity and gas
provider in Australia, recently initiated astudy on energy-saving services in Japan andAustralia. By introducing advanced everysaving products and technologies that are
currently being respectively implemented in
the two countries, the two companies aim toalternatively develop their services in theother country. For Toyota Tsusho, this move
will be an opportunity to sell its products inAustralia, and EnergyAustralia will also beable to introduce its every-saving
technologies to Japan.
In Australia, as a climate change
countermeasure, there is growing interest in
corporate and home-use energy-saving
technologies. As such, interest in Japanesetechnologies continues to increase.
The two companies are planning to jointly
conduct market research on each technology
in the other country and then commercialize
it. (Daily Automotive News, April 20 issue)
electrified vehicle technologies is expected tobe compiled up until summer of this year. Seko
suggested that he send the new strategy abroad,
as “it is important to show the world that Japan
will ambitiously fight.”
In 2010, METI has announced its “NextGeneration Automobile Strategy,” whichcontained the goals related to the diffusion ofeco-cars, and, in 2014, its “AutomotiveIndustry Strategy,” which discussed the future
directions of human resources, trade policies,
and the revitalization of the domestic automarket. (Daily Automotive News, April 19issue)

JARA NEWS No. 123 May 2018 Page 2

ASEAN is animpregnable
fortress forJapanese
automakers,
pictured inIndonesia

Japan's strategy toencompass the Asian market
to counter ChinaChina will introduce its new energy
vehicle (NEV) regulations in 2019. They arebased on the zero emissions vehicle (ZEV)
regulations in the United States, which areapplied on a sales volume basis: however,China’s NEV regulations are applied basedon the production volume of the vehicles.
Automakers will be required to maintain
NEV credits equal to a set percentage ofnon-NEV production volume. The credits
will be traded between automakers.
Sellers of the credits are automakers that
produce many electric vehicles (EVs). Most
existing automakers are in the position ofMLIT approves interim report regarding
OBD-based vehicle inspection and willconduct verification until autumn 2018

Transport ministry approvesinterim report on OBD
inspection
The Ministry of Land, Infrastructure,
Transport and Tourism (MLIT) held ameeting concerning “Talks about Vehicle
Inspection Methods using Onboard
Diagnostics (OBD)” and prepared an interim
report on April 24, 2018. The inspection

buyers of the credits. In the United States,
Tesla Motors earns billions of dollars fromcredit sales every year. The specialist EV
manufacturer mostly sells its credits toJapanese existing automakers, such as
Toyota Motor Corp. and Honda Motor Co.
Traded credits are one of the “virtualcurrencies” and do not require thegovernment expenditures, so they are easily
traded. However, the cost will finally bepassed on to consumers. If carbon dioxide
regulations using the credit trading system
are disorderly introduced in a disorderly
manner in Association of Southeast Asian
Nations (ASEAN) countries and India,
automakers will bear a heavy burden.
As another concern, the Chinese
government and automakers are likely
to drive the export of EVs and electricmotorcycles. Overproduced inferior EVs andis slated for commencement in 2024,
covering new vehicles (cars, buses andtrucks) manufactured in 2021 and later.
Scan tools will be employed to read thespecific diagnostic trouble code (DTC) for
the vehicle, while the pending option for
acceptance and rejection using warning
lamps, which was discussed in the previous
meeting, was put off in this meeting.
According to the interim report, theOBD-based inspection will be applied todriving-assist systems, autonomous driving,and exhaust-emission-related equipment.
The autonomous-assist system includes
equipment for a lane changing system
and automatic parking. However, impact
mitigation braking systems (automaticbraking) for passenger cars are not coveredin the new inspection, because there are nosafety standards for such systems.
The MLIT is to set up specialist working
groups for specific DTCs, for discussions
about DTC data standards and information
control, as well as about specifications andcertification systems for scan tools usedby designated car maintenance plants. The
ministry will also start verification tests ofprocedures for automakers and importers

electric motorcycles might enter the Chinese
domestic market at the beginning: however,they might be lost in a way as the existing
automakers deal with the regulations.
At that time, the Chinese government ishighly likely to provide subsidies for theexport of EVs and electric motorcycles.
In ASEAN countries, in particular, where
there is an impregnable fortress of Japanese
automakers, how will the market be affectedwith by deeply discounted Chinese EVs andelectric motorcycles? In the ASEAN market,
where many are seduced by the susceptible
to Chinese power under the slogan of “OneBelt, One Road,” the Japanese automakers
might be easily swayed by Chinese products.
Since 2017 year, the British and Frenchgovernments have announced bans on salesof vehicles with internal combustion engines
in the future, while German automakers,
such as Volkswagen, unveiled their strategies
focusing on electrified vehicles. However,the International Energy Agency (IEA)
foresees that, even in 2040, roughly 70
percent of total vehicles sold in the world
will be powered by engines. EVs are not
likely to replace engine-powered vehicles
quickly.
The Japanese Ministry of Economy, Tradeand Industry (METI) is planning to send
its message on the strategy of EV diffusion
to Asia and other countries, along with thecountermeasures for batteries, connected
car technology, and car sharing. (Daily
Automotive News, April 19 issue)
who choose specific DTCs and submit themto the MLIT. The tests will also cover theDTC entering methods onto designatedscan tools, and DTC reading methods at thevehicle maintenance plants.
The MLIT is planning to conduct
verification tests until autumn and compile
the final report, which includes a set ofamendments of related regulations andnotices, in October 2018.

CO2 Reduction Effect(based on JARA System)

The use of Reuse Parts saved

2,508 tons of CO2 emissionsin March 2018
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.

JARA NEWS No. 123 May 2018 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

Doors

Seats

Bonnets

ExhaustEngine Suspension

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

Cu

Pt

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 Kobelco
Car 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