Common Challenges, Common Future Japanese Auto Manufacturers Contribute to

the Competitiveness of Europe’s Motor Industry

JAPAN AUTOMOBILE MANUFACTURERS ASSOCIATION, INC.

2007

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Foreword 3

Production in the European Union 4

Research & Development 6in the European Union

EU Production and Exports by Japanese Automakers 8Investment and Employment

News from Our Members 9

Japanese Automakers Buying EU Parts 10

Automotive Ties between Europe and Japan 11

Contents

Common Challenges, Common Future

Japanese Auto Manufacturers Contribute to the Competitiveness of Europe’s Motor Industry

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Japanese Automakers in the EU

Japanese Automakers in the EU Help toStrengthen the Competitiveness of the EuropeanAuto Industry

For more than twenty years, Japanese automobilemanufacturers have been contributing to the vitality ofEurope’s automotive industry by designing andbuilding cars in the European market to meet therequirements of local consumers.

The figures for 2006 speak for themselves:

• Cumulative investment by Japanese automakers inEuropean production and research-and-developmentfacilities reached 15.9 billion Euros.

• Japanese automakers in the EU produced over1.5 million units.

• Japanese automakers operated a total of 16 manu-facturing plants and 13 R&D centres in the EUand purchased 13.19 billion Euros’ worth of EU-madeparts.

• Directly in those operations and indirectly in salesand distribution, Japanese automakers’ activitiesinvolved the employment of over 162,000 people acrossEurope.

• EU-made Japanese models exported from the EU totalled121,713 units.

Japanese automakers are thus making a significantcontribution to the strength of Europe’s motor industry.Working collectively through JAMA in Brussels, theyfully support the recommendations put forward by theEuropean Commission’s CARS 21 initiative to promotethe sustainable development and global competitivenessof the European automotive industry.

With respect to environmental impact and automotivesafety, JAMA members are continuously advancingvehicle technologies to further reduce CO2 and otherexhaust emissions and to enhance safety. At the sametime, they advocate the adoption of an integratedapproach in addressing both issues - an approach thatinvolves not only the manufacturers but all stakeholdersconcerned, including government and vehicle users.

JAMA members also fully endorse the Commission’sgoal of “better regulation” through the simplification andinternational harmonisation of automotive standards.Against the backdrop of expanding globalisation, theseinitiatives will bolster the European auto industry andthereby benefit the EU economy overall.

In support of such efforts and in order to contributefurther to the global competitiveness of the Europeanautomotive industry, Japanese auto manufacturers areworking to enhance their partnership with Europe nowand in the years ahead.

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Production in the European Union

Japanese manufacturers have beenbuilding and producing cars in Europe tomeet the market needs of Europeancustomers.

Japanese manufacturers currently have 16 production facilities in 10 EU countries.

In 2006, Japanese manufacturers produced1.51 million vehicles in the EU.

EU production by Japanese manufacturersmore than doubled since 1996.

Over 37,356 jobs have been directlycreated by our members’ productionactivities in the EU.

Over 15.9 billion Euros have been investedby our members in the production facilitiesin the EU.

Common Challenges, Common Future

Japanese Auto Manufacturers Contribute to the Competitiveness of Europe’s Motor Industry

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Units Units Total Manufacturer Company Location Equity Shares Products Produced Produced Employees Investment

(Start of Operation) in 2005 in 2006 (million)

UNITED KINGDOM

Nissan Nissan Motor Sunderland (1986) Nissan Europe 100% Primera, Micra, 315,297 301,211 4,350 2360 GBPManufacturing (UK) Ltd. Almera, Micra C+C, (€ 3,478)

NOTE, QASHQAI

Toyota Toyota Motor Burnaston (1992) TME 100% Avensis, Corolla 264,300 282,000 4,100 € 2,700Manufacturing (UK) Ltd.(TMUK) Deeside Engines 174,600 370,000 700

Honda Honda of the Swindon (1992) Honda Motor Europe 86.32% Civic 3D, 5D 186,835 184,412 4,700 GBP 1330UK Manufacturing Ltd. Honda Motor 13.68% CR-V, (€ 1,960)(HUM) Engines

FRANCE

Toyota Toyota Valenciennes (2001) TME 100% Yaris 180,600 250,000 3,950 € 897Motor Manufacturing Engines 191,600 194,000France S.A.S. (TMMF)

ITALY

Mitsubishi Pininfarina S.p.A. (PF) Bairo (Torino) (1999) MMC 0% Colt CZC, Pajero, Pinin 1,600 9,114 530 N.A.

SPAIN

Nissan Nissan Motor Barcelona Nissan 99.74% X83 (Nissan Primastar, 193,605 205,937 4,190 € 2,786Iberica S.A. Madrid Renault Trafic and Opel (including

(1983) Vivaro), Navara, Pathfinder, Avila plant)Atleon, F91A (Nissan Cabstar

Renault Trucks Maxity)

Suzuki Santana-Motor S.A. Linares (1985) 0% Jimny 8,027 5,156 638 N.A.

PORTUGAL

Toyota Salvador Caetano Ovar (1968) TMC 27% Dyna, Hiace 3,900 4,000 325 € 39.7I.M.V.T. S.A. Optimo

Mitsubishi Mitsubishi Fuso Tramagal (1996) Mitsubishi Fuso 99% Canter 8,605 9,267 417 € 48.2Fuso Truck

Europe S.A. (MFTE)

THE NETHERLANDS

Mitsubishi Netherlands Car Born (1991) MMC 85% Colt, 115,797 N.A. 1,612 € 1,483B.V. (NedCar) MME 15% Smart forfour (86,926)* (73,430)* (1991-2005)

HUNGARY

Suzuki Magyar Suzuki Esztergom (1992) Suzuki 97.5% Ignis, Swift, 136,341 163,963 4,800 N.A.Corporation SX4

POLAND

Isuzu Isuzu Motors Tychy (1999) Isuzu 40% Diesel Engines 236,518 143,621 749 Yen 26,000Polska Sp.zo.o. € 159

Toyota Toyota Motor Walbrzych (2002) TME 94% Transmissions 331,400 561,000 2,020 € 540Manufacturing Engines 101,500 307,000Poland Sp.zo.o. (TMMP)

Toyota Toyota Motor Jelcz Laskowice TME 60% Diesel Engines 45,000 114,000 1,000 € 200Industries (2005) TIC 40%Poland Sp.zo.o. (TMIP)

CZECH REPUBLIC

Toyota Toyota Peugeot Kolin (2005) TMC 50 % Aygo 34,600 100,000 3,000 €1,300Citroën Automobile (at full production)Czech (TPCA)

GERMANY

Mitsubishi MDC Power GmbH Kölleda-Kiebitzhöhe MMC 0% Gasoline Engines 108,647 113,024 275 €260

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Production Facilities in European Union

MMC - Mitsubishi Motors CorporationMME - Mitsubishi Motors Europe B.V.NMISA - Nissan Motor Iberica S.A.TMC - Toyota Motor CorporationTME - Toyota Motor EuropeTIC - Toyota Industries Corporation

(The Euro values relate to exchange rates in June 2007)

* Mitsubishi brand

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Research and Development in the European Union

Japanese automakers have conductedtheir R&D and design activities inconjunction with their productionactivities in Europe.

Japanese automakers have currently 13 R&D and design centres in the EU.

R&D and design activities in the EU willhelp to meet the specific market needs ofEuropean customers.

3,177 jobs have been created by ourmembers’ R&D and design activities in the EU.

Common Challenges, Common Future

Japanese Auto Manufacturers Contribute to the Competitiveness of Europe’s Motor Industry

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R&D Facilities in the European Union

1. Technical support for procurement of parts for local production

2. Evaluation of parts

3. Evaluation of vehicles

4. Styling and general design

5. Parts design

6. Vehicle design

7. Prototype production

8. Marketing research

9. Development of Formula 1 racing cars

Key to Functions:

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Manufacturer Company Headquarters, CurrentDivision Offices Employees Functions

UNITED KINGDOM

Honda Honda R&D Europe (U.K) Ltd. Swindon, UK 80 1,2,3,5,6,7

Honda Honda Racing Development Ltd. Bracknell, UK 70 9

3 Honda Honda GP Ltd. Brackley, UK 550 9

4 Nissan Nissan Design Europe Ltd. London, UK 56 4,5,6,7

GERMANY

Honda Honda R&D Europe (Deutschland) G.m.b.H. Offenbach, Germany 80 3,4,6,8

Isuzu Isuzu Motor Germany G.m.b.H. Gustavsburg, Germany 128 1,2,5

Mazda Mazda Motor Europe G.m.b.H. Leverkusen, Germany 90 3,4,6,7,8

Mitsubishi Mitsubishi Motors R&D Europe G.m.b.H. Trebur, Germany 68 1,2,3,4,5,6

Toyota Toyota Motor Sports Germany G.m.b.H. Koeln, Germany 650 9

Subaru Subaru Test & Development Center (STCE) Ingelheim am Rhein, Germany 7 2,3

FRANCE

Toyota Toyota Europe Design Development S.A.R.L. (ED2) Nice, France 40 4,5,6,7,8

UNITED KINGDOM

BELGIUM

Toyota Toyota Motor Europe n.v./s.a. Zaventem, Belgium

Bernaston, UK440 1,2,3,5

UNITED KINGDOM

SPAIN

BELGIUM

GERMANY

Nissan Nissan Technical Centre Europe Ltd.

Cranfield, UK

918 1,2,3,5,6,7Barcelona/Madrid, Spain

Brussels, Belgium

Bruhl, Germany

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EU - Production

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Export to the EU

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EU Production and Exports by Japanese Automakers

Investment and Employment

Since 1992, EU production has steadilyincreased and reached 1.51 million vehiclesin 2006.

Since 2001, the EU production of Japanese manufacturers hasexceeded imports from Japan.

Japanese models produced in the EU arealso exported outside the EU. These exportshave totalled 121,713 vehicles in 2006.

The exports outside the EU have contributedto the EU trade balance.

Common Challenges, Common Future

Japanese Auto Manufacturers Contribute to the Competitiveness of Europe’s Motor Industry

Japanese automakers have made significantinvestments in various EU countries.

By creating high skill jobs, Japaneseautomakers have contributed to thedynamism of the EU economy.

162,246 jobs have been created by the activitiesof Japanese automakers in the EU.

40,533 directly, with 37,356 in production and 3,177 in R&D.

121,713 indirectly in headquarters, partsdistribution centres, distribution, financial services and sales.

Company Target date Investment Location Job Creation Investment for production target (million)

Toyota Motor 2009 Increase car Walbrzych 260 € 119Manufacturing Poland production capacity anticipate (Yen 19,700)

Investments in the pipeline

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News from Our Members

HondaHonda of the UK Manufacturing Ltd.,(HUM) plansto reach its full production capacity of 250,000 units per year within 2007. The employment at HUM will be increased by 700 to 4,900 employees with a new shift added. HUM has two production lines and currently produces Civic 3-door and 5-doormodels, and the CR-V. The all-new third generation CR-V has been launched in January 2007. It ispowered by either a 2.0-liter petrol engine or a 2.2-liter i-CTDi diesel engine. The CR-V, in its sportier styling, combines a SUV’s practicality with more car-like driving dynamics. With the performance and quality, the CR-V model in Europe has moved to a premium SUV segment.

ToyotaIn February 2007, Toyota launched the start of theUK production of Auris at the Toyota MotorManufacturing (UK) LTD. On February 26, The RtHon. Gordon Brown MP, Chancellor of the Exchequervisited the Auris assembly line and met with workersand senior management from Toyota’s UK and Europeoperation before being driven off the end of theproduction line to symbolize the official start of theproduction of Toyota’s all-new C-segment hatchback.

Nissan“NMUK IN SUNDERLAND SHIPS SECOND MODELTO JAPAN” On May 17, 2007 Nissan’s SunderlandPlant has started exporting its second model to Japanin the space of just ten weeks. In March, QASHQAIbecame the first Sunderland-built model in over adecade to be exported back to Nissan’s home market.Now, the plant’s Micra C+C convertible will join it ondealer forecourts across the country.

SuzukiMagyar Suzuki Corporation Ltd. has achieved thetotal of one million in its automobile productionvolume on 6 October 2006. Since Magyar SuzukiCorporation Ltd. started producing 1.0L and 1.3L“Swift” in October 1992, they have produced “WagonR+”, “Ignis”, “New Swift”, and “SX4” for the Europeanmarkets as well as the Hungarian domestic marketand achieved one million in 14 years. The onemillionth car of production was “New Swift”. MagyarSuzuki Corporation Ltd., which is the main supplysource for the European markets, is in full production atthe moment and they plan to increase the productioncapacity from 160,000 in 2006 to 300,000 in 2008.

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Purchasing European parts by Japaneseautomakers has steadily increased andreached 13.19 billion Euros in 2006. This is more than three times the amountrecorded in 1996.

In the European production plants ofJapanese automakers, European suppliersdeliver more than 80% of the values ofthe parts.

JAMA members open their contact pointsto potential suppliers in order to pursueglobal maximized purchasing.

European suppliers with high outsourcingand looking for a long-term relationshipare worthy partners for Japanese vehiclemanufacturers.

JAMA-CLEPA (European Association ofAutomotive Suppliers) BusinessConference has provided excellentopportunities to create strong businessrelationships between Japaneseautomakers and European suppliers.

JAMA-CLEPA Conferences

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Common Challenges, Common Future

Japanese Auto Manufacturers Contribute to the Competitiveness of Europe’s Motor Industry

Japanese Automakers Buying EU Parts

Date Place European JapaneseParticipants Participants

March 1995 Paris 450 150

May 1996 Berlin 500 170

Nov 1997 London 530 170

April 1999 Amsterdam 450 100

Nov 2000 Strasbourg 360 140

April 2002 Stuttgart 480 120

April 2004 Göteborg 380 120

Nov 2005 Torino 480 110

May 2007 Dresden 450 130

Nov 2008 TBD (plan)

Source : JAMA.

05 06

4.32

7.53

7.93

9.51

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6.78

6.48

5.89

5.12

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Unit: € billion

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Automotive Ties between Europe and Japan

as at 1st July 2007

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JAMA European officeAvenue Louise/Louizalaan 287 1050 Brussels BelgiumTelephone: + 32 2 639-14-30Facsimile: + 32 2 647-57-54

JAMA Tokyo (Head Office)

Jidosha Kaikan, 1-30, Shiba Daimon 1-chome, Minato-ku, Tokyo 105-0012, JapanTelephone: + 81-3-5405-6126 Facsimile: + 81-3-5405-6136http://www.jama.or.jp/

JAMA North American office

1050 17th Street N.W. Suite 410 Washington, D.C. 20036 - 5518, U.S.A.Telephone: + 1 202 296-8537Facsimile: + 1 202 872-1212http://www.jama.org

JAMA Singapore representative office

GB Building, 9th Floor #09-03/04 143 Cecil StreetSingapore 069542Telephone: + 65 62 21-5057Facsimile: + 65 62 21 - 5072

JAMA Beijing office

Unit 1001B,Level 10, China World Tower 2 N°1 Jian Guo Men Wai AvenueBeijing, 100004 ChinaTelephone: + 86 10 6505-0030Facsimile: + 86 10 6505- 5856

JAMA Associate Offices

JAMA Germany

Am Weckhasen II53175 Bonn, Germany Telephone: + 49 228 766 82-74 Facsimile: + 49 228 766 82-75

JAMA of Canada

Japan Automobile Manufacturers Association of Canada Suite 460, 151 Bloor Street West Toronto, Ontario, Canada M5S 1S4 Telephone: + 1 416 968 0150 Facsimile: + 1 416 968 7095

How to contact JAMA Please visit our English website:

www.jama-english.jp

July 2007

Japan Automobile Manufacturers Association, Inc.

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