Hiroshima-based auto parts manufacturer faces "serious impact" from additional tariffs

2025-04-05

The Trump administration in the United States implemented a measure to impose an additional 25% tariff on imported automobiles at around 1:00 p.m. on the 3rd, Japan time.

At an automobile parts manufacturer in Kure City, Hiroshima Prefecture, executives gathered at a meeting to consider future responses, such as whether to pass on the additional tariff to the sales price of parts.

Benda Kogyo, which was founded 60 years ago and has its headquarters in Kure City, Hiroshima Prefecture, accounts for approximately 90% of the group's total sales from parts for automobile manufacturers including Mazda.

On the morning of the 3rd, before the Trump administration's additional tariff measures were implemented, the company's executives gathered in a conference room in the company to watch related news and gather information.

The company exports automobile parts to the United States from its bases in Korea and China.

From noon onwards, executives at overseas bases also participated online in a meeting to discuss future responses.

During the meeting, they discussed whether to pass on the additional tariff to the sales price of parts and further expanding sales channels to areas outside the United States, such as India and Europe.

Benda Kogyo's president, Kazunari Yashiro, said, "We believe that this will have a serious impact, not only on parts that are directly exported to the US, but also on parts that are indirectly exported to the US by Japanese automakers. Tariffs will be imposed on each country, so there is no effect in dispersing our production bases, and we are very concerned about the impact."

The company has been working on various initiatives to respond to the changes in the environment surrounding the automotive industry.

As the automotive industry moves toward electrification, the company believes that demand for its main engine-related parts will decrease, so it has been prototyping parts used in electric vehicles, but in the future it is also considering entering industries other than automobiles, such as robots, semiconductor equipment, and medical equipment.

In seven years, the company hopes to increase sales in these new fields to half of its total.

President Yashiro said, "We are not the only ones affected. As the automobile industry faces a once-in-a-century transformation, we would like to move forward with both existing and new fields, rather than relying on a single approach as in the past. We would like to overcome difficulties while finding optimal solutions."

Hiroshima Governor Yuzaki told reporters, "Transaction costs have risen significantly, and this will have an impact not only on Hiroshima Prefecture but globally. I think we will need to consider providing financial support to companies that are responding and taking measures to mitigate the impact."

Regarding the automobile industry, where additional tariffs have been imposed, he said, "Mazda's largest sales destination is the United States, so we expect this to have a huge impact. We will work with the national government and financial institutions to consider what kind of support we can provide while watching how Mazda and its suppliers respond."

Governor Yuzaki then pointed out, "High tariffs have the effect of lowering the world's GDP as a whole, and will have a major impact on America itself. If the United States' response does not change, Japan and Europe will need to firmly advance the free trade system."

[Mazda: "We take this as a major impact"] Regarding the Trump administration's move to impose an additional 25% tariff on imported cars on the afternoon of the 3rd (Japan time) in the US, Mazda commented, "We take this tariff measure to have a major impact on the entire Japanese automobile industry and on our business activities. First of all, we will work hard to reduce costs and fixed costs that we can control, and will prioritize protecting our business partners, dealerships, and employees, while minimizing the impact on customers and taking the most appropriate measures."

Auto parts manufacturers accelerate technological development to improve vehicle safety and comfort

2025-02-02

As the race to develop software to improve vehicle safety and comfort intensifies, technological development is also accelerating among auto parts manufacturers.

CES, the world's largest technology trade fair, was held in Las Vegas, USA until the 10th, and saw the exhibition of next-generation cars equipped with the latest software that will enable autonomous driving and other features.

As the importance of software grows, auto parts manufacturers are also working to develop related technologies. Among these, Valeo, a major French parts manufacturer, exhibited a system that supports automakers' software development.

For example, if you have the generative AI draw a picture of Mount Fuji and install it into the system, it will instantly be reflected on the driver's seat display and can be set as the background.

Development director Derek de Bono said: "The car's role in transporting people has remained the same since 100 years ago, but the way we transport people has changed. We need to change with them as habits and needs change."

Germany's Continental also exhibited a system that uses facial recognition to automatically unlock the doors and trunk when the car owner approaches. Security measures are also in place, such as sounding an alarm if anyone other than the owner approaches.

In addition, Germany's Bosch has introduced software that controls the brakes to make snowy roads less slippery, and each company is working on developing new products.

Production of three Toyota vehicles with fraudulent certification will continue to be suspended after July, restart date undecided

June 14, 2024

Toyota Motor Corporation has decided to continue to suspend production of three vehicle models that were found to be fraudulent in national certification tests, which were scheduled to end on June 28, after July. The timing for restarting production has not yet been defined.

It was revealed that Toyota Motor Corporation had cheated on the certification test associated with the government's type designation application, and after receiving instructions from the Ministry of Infrastructure, Transport and Tourism to suspend shipments, Toyota Motor Corporation suspended production of three models , including the Yaris Cross, which is produced at its subsidiaries in Miyagi and Iwate prefectures, starting June 6.

Toyota had decided to suspend production until June 28, but decided to continue suspending production for July as well.

The service will be suspended until at least July 31st and there is still no set date for its resumption.

Additionally, in response to this fraud, Toyota announced that it has suspended testing and other procedures to obtain new model designations for new models scheduled to be released in the future.

As a result, the launch of the new Crown model, which was scheduled to be launched in the middle of this year, has been postponed.

Toyota, Honda, Nissan global sales fall in April due to struggles in Chinese market

May 30, 2024

Last month's global car sales fell below the same month of the previous year for Toyota, Honda, and Nissan, due to sales struggles in the Chinese market.

Last month's global sales announced by the eight major Japanese automakers were 797,097 units for Toyota, down 0.5% from the same month of the previous year, while Honda and Nissan each fell 1.8% and 5.7%, respectively.

The three companies increased sales in European markets, but struggled with sales in China, where EVs (electric vehicles) are becoming more popular.

With regard to the Chinese market, Mitsubishi Motors decided to withdraw from the market in October last year, Honda together with a company is moving forward with the voluntary retirement system and the plan to start operating only electric vehicles throughout the year. Japanese manufacturers are reviewing their strategies.

Among other automakers, Suzuki was up 9.9%, Mazda was up 1.4%, and Subaru was up 7.9%, all of which were up compared to the same month last year, while Mitsubishi Motors and Daihatsu each saw declines of 5.3% and 33.8%, respectively.

Daihatsu will resume shipments of all models produced for the domestic market before frauds were discovered

April 20, 2024

Due to the fraudulent issuance of Daihatsu Motor Co.Ltd. The Ministry of Infrastructure, Transport and Tourism lifted the order to suspend shipments of three models, including the Move Canvas, on the 19th, saying it was confirmed they were in compliance with the standards. With this, Daihatsu will be able to ship all models that were produced to the domestic market before the fraud was discovered.

In December last year, Daihatsu suspended operations at all four of its car plants in Japan due to the issue of Daihatsu illegally obtaining national certification, but production has resumed sequentially starting with models for which the Ministry of Infrastructure, Transport and Tourism has confirmed compliance with the standards and the order to suspend shipments has been lifted.

In these circumstances, the Ministry of Infrastructure, Transport and Tourism

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On the 19th, as it was confirmed that it was in compliance with the rules, the instruction to suspend shipments was suspended.

The company says it will coordinate with parts manufacturers and others to resume production and shipments of these models.

With this measure, Daihatsu will be able to ship all models that were produced to the domestic market before the fraud was discovered.

Daihatsu says, "We will reiterate our top priority on safety and quality, and strive to deliver products to our customers as soon as possible."

On the other hand, some models that have already been discontinued are still undergoing confirmation testing by the government.

"Tesla plans to cut more than 10% of its global workforce" Western media

April 16, 2024

American electric vehicle maker Tesla plans to cut more than 10% of its global workforce, Western media reported. It is believed that the aim is to improve profitability in response to the decline in sales volume against the backdrop of competition from Chinese EV manufacturers.

Western media reported on the 15th that Tesla CEO Elon Musk informed employees in an internal email that he would reduce the number of employees worldwide by more than 10%.

According to the Wall Street Journal, in an email to employees, Musk said that he needed to cut costs and increase productivity, and said, "We have done a thorough review of our organization and made the difficult decision to reduce our workforce by more than 10% globally.

Tesla had more than 140,000 employees at the end of last year, and 10% is about 14,000 people, which would be a major reduction in personnel if implemented.

Tesla is believed to be aiming to improve profitability in the three months to last month, with new car sales in the three months to last month lower than the same period of the previous year for the first time in about four years against the backdrop of competition from Chinese EV makers and slowing growth in EV demand.

Daihatsu will resume production from its Copen plant at all plants in Japan

April 12, 2024

Due to the problem of the fraudulent acquisition of national certification by Daihatsu Motor Co.Ltd.The company has announced that it will resume production of the "Copen" small car, which had been suspended, at its headquarters plant in Ikeda City, Osaka, from the 7th of next month. With this, all automotive plants in the country will be put into operation.

In December last year, Daihatsu Motor Co.Ltd. suspended operations at all four car plants in Japan due to the problem of Daihatsu Motor Co.Ltd. illegally obtaining national certification, but production resumed sequentially starting with models that were confirmed to meet the standards through testing by the Ministry of Infrastructure. transport and tourism and the order to suspend shipments has been suspended.

In this context, Daihatsu Motor Co.Ltd. has announced that it will resume production of two models ofthe Copen small passenger car, for which the order to suspend shipments has been lifted at its headquarters plant in Ikeda City, Osaka, from the 7th of next month.

With this, all automotive plants in the country will be put into operation.

In addition, production of the Taft small car will resume at the Oita plant of its subsidiary Daihatsu Kyushu from the 6th of next month.

In response to this problem, Daihatsu Motor Co.Ltd. announced a new management policy on the 8th of this month, and clarified that the parent company, Toyota Motor Corporation, will be responsible for everything from development to certification for its overseas small car business to prevent recurrence.