(Please click the map for OEM plant locations.)

  This report covers trends among Japanese parts manufacturers in the U.S. and Canada, detailing plans for increased production capacity, the establishment of new companies, and the strengthening of business structures (featured content starting from the nine months leading to July 2017).

  In 2016 automobile sales in the U.S. (passenger vehicles, light trucks) saw a year-over-year (y/y) increase of 0.4% to 17.55 million vehicles. Per model, sales for passenger vehicles saw a y/y decrease of 8.1%, but light trucks saw y/y growth of 7.2%. Between January and July 2017, 9.87 million vehicles were sold for a y/y decrease of 2.9%.Specifically, 3.75 million passenger vehicles were sold for a y/y decrease of 11.7%, while light trucks saw a y/y increase of 3.5% to 6.12 million vehicles. This indicates an ongoing shift in demand from passenger vehicles to light trucks, such as pickups and SUVs.

  In 2016, automobile production (passenger vehicles, light trucks) in the U.S. saw a y/y decrease of 0.1% to 11.91 million vehicles. Passenger vehicles saw a y/y decline of 15.0%, and light trucks fell 4.7% y/y. From January to July 2017, 6.44 million vehicles were produced for a y/y decrease of 6.7%. Passenger vehicles saw a y/y decrease of 18.1%, and light trucks declined 0.1% y/y.

  However, production may return to the U.S. in the mid-term based on demands from President Trump. GM and FCA invested USD 1 billion in domestic plants and Ford announced it would invest USD 1.6 billion over four years. Toyota and Mazda established a joint venture with equal stakes and plan to open a plant by 2021 with an annual production capacity of 300,000 vehicles. VW announced it will invest several billion dollars in a U.S. plant, while Daimler announced it will make an investment of USD 1.3 billion in production facilities. Moreover, Japanese, American, and European OEMs are pushing development of next-generation technology such as the production of electric vehicles, as well as autonomous driving and AI.

  In response to these trends, Japanese parts manufacturers are expanding production lines and upgrading equipment at existing plants, as well as establishing new companies and plants to support the various needs of existing and potential clients. Particularly conspicuous are the widespread efforts of companies to respond to demand accompanying the tightening of environmental and fuel regulations. To strengthen business organizations, suppliers have been engaging in activities like acquisitions to get advanced technology, capital and technology partnerships, and alliances.

  H-One plans to develop fundamental technology related to weight reduction and safety at its existing research and development center to strengthen its research and development organization. Sumitomo Rubber opened its new U.S. Technical Center research and development facility on the grounds of its existing plant.

  In Canada, Hanwa has invested in Canadian companies that are developing and producing high-purity lithium carbonate and plans to market the material for lithium-ion battery use.

Related Reports:
U.S. Market Analysis: Market share for SUVs hits 40% (Apr. 2017)
LMCA Client Alert: Trump Trade Policy (Jan. 2017)

<Japanese Supplier Reports>
• Mexico and Brazil (Sep. 2017)
• Europe (May 2017)
• India (Jun. 2016)