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

Sales goals and supporting measures areshared with attendees

JARA sees a 10% increasein parts procurement forFY2018
JARA (Japan Automotive Recyclers Alliance)
Corporation set a target of a 10 percent increase inits members’ procurement of rebuilt parts (RP) andgenuine parts (GP) for the fiscal year 2018. As
head of a new sales team, JARA’s president
Shosho Kitajima will lead company-wide efforts tomeet the goal.
The goal was announced during its “6thMeeting with RP&GP Parts Suppliers.” Althoughlast year’s procurement increased by 7.0 percent
compared with the previous year, they failed torealize the goal of a 10% increase. JARA
attributed the negative results to the fact that “wecould not grasp exact progress on a monthly basis,
as well as a lack of promotional campaign.” As aresult of this outcome and the lessons learned,
JARA aims to introduce various measures toachieve the goal.
In order to understand how progress towards

CO2 Reduction Effect

the goal is developing, the Automobile Total
Recycle System (ATRS) will collect the sales
status of each member company as well as theperformance of individual sales persons.
In order to respond to the increased demand forrebuilt parts, different companies need different
sales efforts. To continue these sales efforts, “weneed to provide a system in which a company
trying hard should get the benefits,” said Kitajima,President of JARA.
By using JARA’s call center, it aims to launchan active promotions campaign aimed at users ofrebuilt parts. “We are thinking of catch up needs ofeach company,” said Kitajima, suggesting that
JARA will continuously host seminars andmeetings in each region to strengthen the networkof contacts. (Daily Automotive News, Jan. 25,
2018 issue)

This year JARA offers users
use of its ATRS free of charge
JARA Corporation will offer use of its ATRS
free of charge for its members for a limited period
until December 31, 2018. JARA has experienced
stable performance since its merger with Toyota
Tsusho Corporation in 2014 and the free of charge
offer is one of its “return-to-member” measures.
“We, as a headquarters, want to support
members’ activities in these hard businessconditions,” said JARA President Sosho Kitajima.
The monthly charge for use of the system isnormally 25,000 yen but will be zero until
December 31, 2018, while the ELV mode use
charge, connection fee, and support fee remainunchanged. As a result, each member’s financial
burden will be reduced from the current 84,000
yen to 49,000 yen per month.
The company has been enhancing the functionsof ATRS so as to improve efficiency in daily
operations and parts production at each member
site. Last year, three new functions were(based on JARA System)

The use of Reuse Parts saved

2,200 tons of CO2 emissions
in December 2017
The reference figure represents the difference of carbon
dioxide (CO2) emissions at the vehicle repair usinggenuine (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.

Last year "Presentation of ATRS" wasconducted in each region

February 2018, No. 120

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
introduced: “Parts Taking Setting,” by which thesystem automatically indicates if the parts required
are classified as reuse or recycled, “Vehicle
Inspection Certificate QR Code Reading,” and“Genuine Parts Number Guide” functions.
JARA will further promote the system and its
new functions by hosting “Presentation of ATRS”
in each region. (Daily Automotive News, Jan. 10,2018 issue)

ELV acceptance rose in 2017 forthe first time in three years
J a p a n ’s E LV a c c e p t a n c e b y c o l l e c t i n gcompanies in 2017 increased compared to a year
earlier for the first time in three years. According
to the Japan Automobile Recycling Promotion
Center (JARC), end-of-life-vehicles (ELVs)
accepted by designated collection companies in2017 increased by 7.7 percent from the previous
year to 3,277,142 units. Higher prices for scrap
steel prices and steady sales of new cars
contributed to the yearly increase of ELVacceptance. For December 2017 alone, ELV
acceptance totaled 274,997 units, an increase of
9.2 percent on the same months in 2016.
The price of scrap steel surpassed 37,000 yen
per compared to a proper market value of 25,000
yen in the iron industry. As a result of these priceincreases, the purchase price of major electric
furnaces is roughly 10,000 yen higher comparedwith the previous year.
Two years ago, there were many cases ofbusinesses shutting downs and bankruptcies due tothe low market price of scrap steel.
“Unlike the two years ago, now we seldom
have heard of bad news, such as business closureand bankruptcy in the recycling industry,” said arecycler association executive.
Strong sales of new cars also contributed to theyearly rise in ELV acceptance. In 2017, newvehicle sales increased 5.3 percent from a year
earlier to 5,234,166 units, surpassing the 5 millionunit-mark for the first time in two years. In
general, an ELV appears in the market 2-3 months
after the launch of a new car. Figures show thatmonthly ELV acceptance increased every monthfor the last 13 consecutive months sinceNovember 2017.
JARC predicts acceptance of 3.05 million ELV
units in fiscal year 2017 ends March 31, 2018. On
the other hand, in terms of the medium- to longterm timeframe, strong performance of used
vehicle exports from Japan might restrict thisforecast. An industry leader warned, “This year wewill prepare foundations for the future business.”(Daily Automotive News, Jan. 18, 2018 issue)

JARA NEWS No. 120 February 2018 Page 2

Students presenting their work to visitors
to help improve their presentation skills

Automotive technical colleges
exhibit customized cars at
Tokyo Auto Salon
The Tokyo Auto Salon 2018, Japan’slargest customized car trade show, was heldon January 12-14 January at the Makuhari
Messe convention hall, Chiba Prefecture.
Several automotive technical colleges exhibited
their products at the trade show. The colleges
encourage students to present their own designs
and products at the event. Here, students
have the opportunity to interact visitors andexplain their designs, thereby improving theirpresentation skills. The 3-day event serves
as a spotlight on their designs, as well as anopportunity to grant a foothold to students who

Automaker's offensive mood may bediscouraged (Pictured in car dealer inHanoi)

Japanese automakers' dilemma
regarding new import legislationin Vietnam
Jap an e s e a ut oma ke rs i n Vi et nam areconcerned about the new import legislation
introduced by Vietnamese government atthe beginning of this year. The details of
this legislation have not been made public.
However, the import of vehicles into Vietnam
has been suspended. The Japanese Ministry ofEconomy, Trade and Industry (METI), alongwith the United States, is going to attempt
to persuade the Vietnamese government toannounce the details of the new legislation assoon as possible, as well as to consider revising
the legislation.
Under the new legislation –Decree 116

will play a role in the future of the industry.
Students from the Tokyo Automobile
University School students developed a restored
version of the Toyota Sprinter Trueno AE86.
Restoration is not included in the school, whichmeans that the students had to accomplish thisthrough trial and error. When they encounteredan obstacle, students switched roles with others
to promote fresh ideas Hereby they developed
teamwork and creative problem-solving skills.
N i h o n A u t o m o b i l e C o l l e g e ( N AT S )concentrated on exhibiting their customized
cars, because “By interacting with visitors faceto-face, the students can communicate more
directly, which affords them the opportunity to
explain their products to visitors.
This is beneficial in developing theircommunication skills for when they graduate
from college and join the workforce.”
Toyota Technical College Tokyo emphasizeda women’s perspective. The school has been
exhibiting customized cars every year, andfeature designs by female students belonging to
its body craft department. For many students,
this is the reason for their application to thisspecific school. A student is quoted as saying;“I chose this school because I can learn designwork.”
Students from the Nakanihon Automotive
College exhibited a remade version of acustomized car, which was originally developedby college teachers 13 years ago. Both thestudents and teachers state, “We were engaged
in a practical working process that cannot beand 125– importers need to apply for an
automobile importation business license fromthe Vietnamese Ministry of Industry and Trade.
In addition, safety inspections are required foreach imported lot (one vessel), or each vehicle
model type. Tariffs on the import of automotive
parts not manufactured in Vietnam areexempted. However, this exemption is limited
to “parts for use in more than 3,000 vehicles
per model, or parts for use in more than 8,000
vehicles produced every 6 months in Vietnam.”This is an extreme requirement, which only
few automakers are likely to reach.
Vietnam belongs to the ASEAN Economic
Community (AEC), which promotes free
trade in the ASEAN region. From January
1, 2018, 30 percent of automobile importduties (applicable to passenger vehicles)
were abolished. Vietnam, however, braces
such zero import duties since other countries(such as Thailand) are putting pressure on theVietnamese domestic automotive industry.
Parts supply chains in Vietnam are relativeweak.
Because of recent developments, Japanese
automakers were forced to suspend the importof vehicles to Vietnam. Toyota suspended
the export of its Yaris and Hilux models, andMitsubishi Motors and Mazda have stopped
Thai production of the Pajero Sports and theBT50, respectively. Honda has also suspended
export from Thailand.
METI has requested the Vietnamese
government to revise the legislation concerned.

Toyota Technical College Tokyo's female
students designed this customized car.
Numerous customized cars – designed
from women's perspective – are on display
at the event
found in a text book.” As can be seen above,
the Tokyo Auto Salon provides students with aplace where they can learn practical skills.
Shizuoka Professional College of Automobile
Technology had a unique approach. First, thebody design department’s students createdvarious design potions. Then, all the students
voted for their favorite custom car design. By
this means, even students who are not interested
in the customized car show, had the opportunity
to attend the event.
In terms of creating and manufacturing
products, it is important for students to be
involved in the car production process from thestart. (Daily Automotive News, Jan. 19, 2018issue)
Minister Hiroshige Sekou met with Vietnamese
Trade and Industry Minister Tran Tuan Anh lastNovember at the APEC Ministerial Meeting
and requested that the legislation to be revised.
In addition, last December, the Japanese
government repeated the request to Mr. Anhduring his visit to Japan to participate in theWTO meeting. However, it seems that theVietnamese government is reluctant to revise
their decision.
In 2017, new vehicle sales in Vietnam
amounted to 272,750 units, down 10.4 percent
from the previous year. Consumers refrained
from buying cars, considering the decreaseof special consumption tax and the importduty abolishment. Therefore, automakers
expect a rise in demand this year. However,the new import legislation may discourage
the automakers’ offensive mood. An earlyrecovery from this situation is expected. (Daily
Automotive News, Jan. 20, 2018 issue)

JARA NEWS No. 120 February 2018 Page 3

Dismantling process flow chart
How the Car Dismantling machine works
1. Receiving andevaluating cars
Incoming
vehicles 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

BatteriesDoorsSeats

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 removingparts
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