1

News from JAMA Asia-Pacific Edition

JAPAN AUTOMOBILE MANUFACTURERS ASSOCIATION, INC. Asia - Pacific Edition082004 JAN

V o l u m e

Top NewsEfforts Now Turn to Improving Fuel Quality

One year has passed since the start-up of the Asian Free Trade Area in January 2003, and as its advantages become evident, efforts are being made voluntarily to further advance the process of free trade. One example took place last July at the informal special ASEAN Economic Ministers meeting, when the parties reached agreement on an industrial integration initiatives for 11 sectors, including the automotive industry. Japan's auto industry heartily welcomes these moves.

In previous issues of this newsletter, we have touched upon the importance of harmonization of standards as one topic related to future market integration. In this issue, we would like to raise another important concern: the problem of fuel quality.

Improvement in fuel quality is, of course, important from the perspective of the impact of fuel properties on air pollution. The harmonization of the specifications for these particles throughout ASEAN will greatly facilitate integration of motor vehicle markets in the region.

To deal with the problem of urban air pollution caused by exhaust from increasing motorization, ASEAN countries need to take urgent steps to clean exhaust gases. In addition to new technologies that have improved engines and after-treatment devices, improving the situation regarding fuel properties, which are emitted from cars on the road, is also a major concern. The issue involves a number of factors, but items that warrant the highest priority include removing lead from gasoline and reducing the sulphur content of gasoline and kerosene.

JAMA support to the regionJAMA is currently engaged in exchange of information on fuel properties with the Technical Committee of the ASEAN Automobile Federation. In addition, we are conducting workshops on improving fuel quality, and working to promote understanding regarding the importance of obtaining a consensus on fuel quality in line with exhaust emissions regulations the among the respective governments, automotive industry and petroleum industry in the region. At the JPEC sponsored "Asian Petroleum Technology Symposium" to be held in Bangkok in January 2004, JAMA, a co-sponsor, will be on hand to distribute information on fuel quality technology and to exchange views.

JAMA is fully committed to joining with its counterparts in the AAF to raise the awareness of ASEAN governments, the petroleum and automotive industries, and ordinary citizens toward the importance of improving fuel quality.

News from JAMA Asia-Pacific Edition

Second Phase of Experts Dispatch Program Starts up in Philippines and Malaysia

2

The second phase of the ASEAN Experts Dispatch Program got under way from Autumn 2003. Here are the first progress reports.

In the PhilippinesThis time, all team members conducted surveys covering 50 items, with the results reported on a diagnostic sheet. Because the results of the first phase showed greater improvements were achieved with each repetition, it was agreed that the second phase should also adopte the same pattern. To meet the objectives of the program’s second phase, which will involve methods of instructions to enable companies to enact “kaizen” methods on their own, the following guidelines are to be adopted into on-the job training procedures.

Seek to correct the companies’ weak points through diagnoses by as many people as possible. Provide instructions in a way that will satisfy the company management. Create an atmosphere where instruction can be effective. Make sure that the team receiving instruction is fully satisfied with course contents. Use quantitative figures to display progress toward reaching personal objectives. Get learners to implement their own action plan for kaizen. Always track the action plan with follow-up support.Assign improvements with recognizable goals that are clearly apparent to anyone. Impart the effort to improve in order to realize objectives among all employees, instituting systems of evaluation and awards. Set standards for all processes, and establish a foundation for them to be continued in the future.

In order for the instructors to effect ongoing knowledge transfer, counterparts were assigned at MVPMAP, with one person at each large company

entrusted to effect knowledge transfer in a precise manner that would ensure the right information would reach the largest number of people. Companies at which top management attended the training sessions realized outstanding reforms, and were easily able to achieve their objectives. To harness the energies and efforts of the companies’ entire workforce, everyone was informed of awards. Workers were also given awareness that great overall gains could be achieved through their own efforts at improvement.

In Malaysia On November 21, 2003, the second Steering Committee Meeting (SCM) was held at Automotive Federation Malaysia. Chairman Madame Aishah welcomed three JETRO assigned experts: Mr. Takuhiro Itotani (Plastic), Mr. Yasuhiro Oki (Metal) and Mr. Haruyuki Yamaguchi (Maintenance). As opposed to the 45 companies that participated in the Phase 1 program, so far 12 companies have been approved for participation. The JETRO experts began making once-weekly visits from November 10. In consideration of Ramadan, the Muslim holy month of fasting, special arrangements were made for the experts to complete their visits during morning hours. One of the key objectives of Phase 2 is the “On the Job Training Program.” The two governments are looking forward to the day when Malaysia’s own “Kaizen Instructors” take over from the JETRO team and begin working with companies to boost parts manufacturers’ competitiveness. On December 4, the SMIDEC, AFM and JETRO signed a formal Memorandum of Understanding in the presence of Datuk Kerk Choo Ping, Malaysia’s Deputy Minister of International Trade and Industry.

Next issue: Reviews of the program’s progress in Thailand and Indonesia.

1.

2.

3.

4.

5.

6.

7.8.

9.

10.

3

News from JAMA Asia-Pacific Edition

SERIES: The Future of Motoring

Exciting New Technologies on the HorizonPart II: Car Telematics

“Telematics,” a term coined by combining the words “telecommunication” and “informatics,” is a new concept closely linked to the development of Intelligent Transport Systems. Just as cell phones have brought voice communications to drivers, Telematics promises to harness a wide range of information technology to transform people’s motoring lifestyles of the future. Navigation systems, which paved the way for introduction of new technology, are already well established in the market. According to the Japan Electronics and Information Technology Industries Association (JEITA), by the end of 2002 such equipment had already been installed in well over 12 million vehicles in Japan alone. Beyond car navigation, rapidly growing capabilities of the IT sector are making available services related to information (weather and traffic conditions, business-related news, etc.); commerce (shopping information); e-mail communications;

and even entertainment. One example is VICS, a system utilizing multiplexed FM signals to broadcast road traffic data to drivers. Introduced from April 1996, VICS users are now approaching seven million. As electronics technology advances, Telematics can be expected to support a number of increasingly sophisticated automobile-oriented services. Vehicle navigation in real time, for example, will be able to help drivers find restaurants and shopping en route to their destination, and a parking space when they arrive. As cars become even more intelligent, so-called “remote maintenance services” - which monitor the status of a car’s oil pressure and other conditions and advise when servicing or parts replacement is needed - can be expected to grow. Roadside emergency services, meanwhile, will give drivers additional peace of mind from such concerns as breakdowns, accidents and crime. This introduction to Telematics will be continued in the next issue.

Difference between the Intelligent Transport System and Telematics

Source; August ’03 issue of the Japan Automobile Manufacturers Association’s “JAMAGAZINE.”

Automobiles

ITS Automobile Convenience

Telematics

General Services

CrossoverTelematics

More pleasant motoring lifestyle

Information Technology Support●Entertainment●Information●Communications●Commerce

Autombile Services●Navigation●Emergencies●Driving management●Remote maintenance●Intelligent cars

Automobiles(Automobile manufacturers)

Peripheral players(Communications carriers, electronics manufacturers, etc.)

Types of Telematics Services

Source; August ’03 issue of the Japan Automobile Manufacturers Association’s “JAMAGAZINE.”

Head OfficeJidosha Kaikan, 1-30, Shiba Daimon 1-Chome, Minato-ku, Tokyo, 105-0012 JapanPhone: +81-3-5405-6126Fax : +81-3-5405-6136Internet: http://www.jama.or.jp/JAMA relocated on January 1, 2004.

Singapore Representative Office143 Cecil Street #09-03/04 GB Bldg., Singapore 069542Tel: +65-6221-5057 Fax: +65-6221-5072

4

JAPAN AUTOMOBILE M A N U F A C T U R E R S ASSOCIATION, INC.

News from JAMA Asia-Pacific Edition

Adopting the overall theme “The Challenge: Driving Toward a Better Future,” the 37th Tokyo Motor Show was held from October 24 to November 5, 2003. During the 13 days of the show, according to organizers, 1.42 million people visited the 42,000 square-meter Makuhari Messe on the outskirts of Tokyo to attend events and view exhibits operated by four governments, 263 companies and one organization.

The show received heavy coverage by the print and broadcast media. During the two Press Days, some 12,300 members of the press attended, including 4,700 representing overseas media organizations. The large turnout of Asian-based reporters was attributed to the rapid growth of the Chinese automotive industry.

“Hands-on” attractions thrill young and old In addition to the latest new models offered by Japanese and foreign car and motorcycle manufacturers, exhibitors presented detailed displays of their development efforts to improve performance, enhance safety and make their vehicles more environmentally friendly. Visitors were able to marvel at exotic concept cars that proposed designers’ bold and imaginative visions for motoring lifestyles in the not-so-distant future.

The 2003 show also marked several major firsts: Because JAMA merged with the show’s former organizing body, the Japan Motor Industrial Federation, in May 2002, JAMA served as organizer for the first time ever. The show was also opened to non-automotive companies for the first time, attracting exhibits by such companies as Sony Computer Entertainment, Tomy Co., Fuji-Xerox and Japan Airlines. To nurture young people’s interest in automotive technology and boost attendance, JAMA waived admission charges for children under 12, and instituted a half-price system for students up to and including high school age.

To highlight their efforts at environmental protection and driving safety, show planners shifted their strategy away from visitors merely “looking” at the cars to more opportunities for hands-on participation. Visitors were able to test drive prototype vehicles powered by fuel cells or alternative fuels. Special traffic safety demonstrations included a driver aptitude test and device that allowed the visitor to safely experience a low-speed crash to demonstrate the effectiveness of seat belts.

Message from SingaporeThere is no doubt that year 2004 will be a bright future for Asia’s automobile manufacturing industry. As the ASEAN market continues to expand, great development opportunities are identified in China. Although the emergence of China’s automobile manufacturers would intensify the industry’s

competition, it has also provides an impetus for great development opportunities at the same time. From the past stages of developing nations in ASEAN, we could tell that China’s business activities are at its vibrant stage. In 2003, China's export to ASEAN countries has risen more that 30% compared to previous year. Let us look forward, once again, to Asia in becoming the world’s fastest growing hub.

Tokyo International Motor Show Attracts Over 1.4 Million Visitors