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

June 2017, No. 112

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

reconstruction of Kumamoto Castle, which is asymbol for the citizens of Kumamoto
prefecture.”
Immediately after the Kumamoto earthquake,
JARA group started gathering information about
the damage in the region and sent relief
supplies. (Daily Automotive News, Apr. 27 issue)

JARA holds its first sales-volumebased workshop for members
From right, Kunihiko Miyamoto, Kumamoto
City Finance Bureau Chief, Yuji Imai, JARA
Group Chairman, and Sosho Kitajima, JARACorp. president

JARA Group donates to thereconstruction of areas damagedby the Kumamoto earthquake
JARA Group recently donated funds to assist
the reconstruction of areas damaged by theKumamoto earthquake that hit the region twoyears ago. Group Chairman Yuji Imai says, “Wewill provide as much assistance as possible inorder to stop the disaster from being forgotten
and to reconstruct the area.”
The donation of 600,000 yen will be used toassist the reconstruction of damaged schoolbuildings and roads, which is led by Kumamotocity. The group also donated another funds thatwill be used for the reconstruction of thedamaged Kumamoto Castle under Kumamoto
city’s “Lord of a Castle” campaign. JARA
Corporation President Sosho Kitajima says, “Wehope that these funds will help theCO2 Reduction Effect(based on JARA System)

The use of Reuse Parts saved

2,535 tons of CO2 emissions
in April 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.

On April 22, JARA Group held “The First
JARA Group Category-based Workshop” at aseminar house in Tokyo. A total of 80 persons
participated in the new workshop. They weregrouped into four categories based on theircompany’s sales volume. In the first part, a special
lecture was given by NPO-JARA Chairman
Satoshi Takahashi to all participants, which wasfollowed by JARA Corporation’s president Sosho
Kitajima’s guidance on efficient use of computerbased financial accounting documents.
The category-based workshop was designed toencourage members with similar sales volumes toshare issues beyond the barrier of geographic
relationships, thereby stepping toward theimprovement and growth of their businesses. It isscheduled to be implemented in July and Octoberof this year.
In the lecture, Takahashi warned that “recyclers
have only two years ahead to survive or not.”Amid the advancing bipolarization of recyclers
that are chosen by customers and those that are not

JARA's Partner Rebuilt Parts Maker

Honest Co. focuses on humanresource development
Honest Co., a major rebuilt automotive parts
manufacturer, is gearing up to develop humanresources in its production and development
divisions. As companies are seriously sufferingfrom a shortage of workers, the Saitama
prefecture-based recycler will visit high schools
and universities in the region for recruitment
beginning from this June, thereby directly
promoting the charm of the auto recycling
industry to students. It is a rare project in theindustry. Honest aims to increase the number of
its employee.
Like those in the automotive repair service
industry, businesses in the recycling industry arefacing a shortage of workers. Some recyclers
provide a better working environment for
employees, such as an improved welfare systemchosen, “it is important for every company tocontinue to develop and evolve in addition togrowing.”
In his guidance, Sosho Kitajima presented how
to use data for profit analysis using sample sales
and purchase volume data. He stressed that “byusing these data, you can identify how yourcompany is different from others. That
information will help you consult with groupmembers and learn from them.” (Daily AutomotiveNews, Apr. 27 issue)

Satoshi Takahashi
encourages
participants

Sosho Kitajima
explains sales andpurchasing accounting
dataand increased holidays. Last June, Honest
increased holidays from the previous 95 days to106 days a year. Three new graduates joined
Honest this April. Until last year, the company
had been hiring personnel by placing
advertisements in newspapers and posting jobs
at schools.
Starting this year, Honest will strengthen its
human resource development and conduct
school visit activities. Its personnel department
staffs will visit those who are responsible forstudents’ career guidance in high schools anduniversities in Saitama to directly promote theimportance of the automotive recycling businessas well as job contents to them. For its June
activities, the company aims to hire newgraduates as personnel who will work in theparts production and product development
divisions. The demand for rebuilt parts isexpected to grow; as such parts are highly
valued in the vehicle repair industry. As such,
Honest sees that the personnel in rebuilt parts
production are becoming increasingly important
for the future. (Daily Automotive News, May 11 issue)

JARA NEWS No. 112 June 2017 Page 2

Image of a computer screen that is infected by Ransomware

Cyber attacks spreadeven across the auto
industry
Referring to cyber attacks that occurred
around the world, Hiroshige Seko, Ministerof the Ministry of Economy, Trade andIndustry, said on May 14, “METI willcontinue to make efforts to gather information
about damages as well as call the issue toattention.” The attacks using malware called“Ransomware” caused widespread confusion
centering on older operating systems.
U.S. transport giant FedEx Corporationand Spanish communication firm Telefonica,S.A. suffered from the cyber attacks.
According to U.S. presidential advisor
Thomas Bossert, the damages extended to300,000 computers in 150 countries.
On Sunday, May 14, Japan’s I Information
Technology Agency held a press briefing toraise attention to the issue. METI also asked
related groups to report damage information.
Detailed information about those who
suffered from the attack, however, has notbeen disclosed because attackers might haveto access it. According to the JEPCERT
Coordination Center, about 600 IP addresses,
or 2,000 computer terminals in Japan wereinfected as of May 13, including Hitachi
Ltd. group and Kawasaki city’s Waterworks

Bureau.
Nissan Co.’s Thunderland Plant in theU.K. halted its operations. Renault also
temporarily stopped vehicle production in its
French plant. Although Nissan stated, “ourproduction has mostly not been affectedby the attacks,” the production lines at theautomaker might be influenced if the cyberattacks assault its control system.
METI is working hard to promote its“Guidelines for Cyber Security” and expand
its systems of information gathering andcountermeasure development against thecyber attacks. It will also provide aid forsetting up such cyber security measures.
(Daily Automotive News, May 17 issue)

Ministries to make 2times over-emissions
illegalThe Ministry of Land, Infrastructure,
Transport and Tourism and the Ministry of theEnvironment compiled a policy on nitrogenoxide (NOx) emissions detected from testingvehicles on the road. If NOx surpasses twotimes the amount of prescribed values, itbecomes illegal. The new rule is scheduled to be
introduced in 2020.
In consideration of the Volkswagen emissions
scandal, the two Japanese ministries set up an
investigative commission in autumn of 2015
and compiled the final report. For road tests,
vehicles should be equipped with emissions
measurement devices called “PEMS” andundergo the test under prescribed conditions.
The rule was created in consideration of suchtests previously conducted in Europe.
Unlike Europe, where strict road tests areslated to be launched this September, Japanese
authorities have given automakers a five-year
grace period, as they need to modify engines tomeet the new rule. NOx is the only matter thatwill be tested in Japan, while both NOx and PM
are tested in Europe.

On the other hand, for diesel passenger carsand diesel trucks with a more than 3.5-ton grossvehicle weight (GVW), both of which had
previously been controlled by the companybased regulations of each automaker, a newcommon rule for emissions will be applied.
The final report also suggested that a nonnotice inspection might be implemented whereneeded. (Daily Automotive News, Apr. 21 issue)

Toyota's Prius PHV
to be put to the test
Toyota Motor Corporation‘s fully remodeledplug-in hybrid car “Prius PHV” will be put tothe test in the market. Last year, the company
sold 13,200 units of the Prius PHV in the world
market, about three times the volume sold in theprevious year. Of that, combined sales in Japan
and North America accounted for 98 percent of
total sales. By launching the new model, Toyota
aims to drastically increase the sales of this ecofriendly car.
In Japan, the sales target of the new Prius
PHV is set at 2,500 units a year. According
to the Japan Automobile Dealers Association,
sales of Prius PHV reached about 6,000 units
only in two months since it was launched inFebruary 2017. This momentum is an amazing,
compared with the previous model’s cumulative
sales of 22,000 units in five years.
However, a Toyota dealer official says,“the results are not at a satisfactory level inconsideration of Toyota’s sales force.” On theother hand, another official said, “it takes time
like the Prius hybrid.” The new plug-in hybrid
car will play an important role in the future
market.
In March 2017, the new Prius PHV wasreleased in Europe. Toyota is also planning
to introduce the vehicle in South Korea andTaiwan this year. In the U.S., the plug-in
hybrid car might face a hard fight in the market
because the sales of SUVs and pickup trucks
are booming there. (Daily Automotive News,May 18 issue)

JARA NEWS No. 112 June 2017 Page 3

Dismantling process flow chart
How the Car Dismantling machine works
1. Receiving andevaluating cars
Incomingvehicles testedon dynamometerto check engine
condition3. 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

13

Cu

Al

CopperAluminium

63.546

Tyres

Batteries

Doors

Seats

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 dismantlingprocessHarnesses

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
Windows261329

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 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

DoorsHarnesses

www.kobelco-jianji.com/

www.kobelco-usa.com/

www.kobelco-europe.com/

For China

For North America

For Europe