Speech4

New Year’s Message 2001

New Year’s Message from JAMA Chairman Hiroshi
Okuda

Speaking Notes for Yoshio Nakatani
– JAMA Canada Reception

Speech by JAMA Vice-Chairman Takao
Suzuki – JAMA Canada Reception

Notes for a Speech to the Canada-US
Business Association




Hiroshi Okuda, Chairman

Japan Automobile Manufacturers Association

Happy New Year! At the start of 2001 and at the opening of a new
century, let me wish you all the best and share some of my thoughts
with you.

The automobile was first introduced at the end of the 19th century
and went into mass production in the early part of the twentieth.
Spreading rapidly throughout the world as a practical, highly convenient
means of mobility and of transporting goods and people, it was a
defining symbol of the past century. One hundred years ago, only
10,000 units were manufactured in a year. Today, about 50 million
are produced annually, and about 700 million units are on the road
worldwide.

The Japanese automobile industry made a full-scale entrance onto
the world stage around 1970, a time that would be marked by a major
oil crisis and the recognition of environmental pollution as a critical
problem. It was during those years that consumers around the world
began to welcome the quality of Japanese automotive technologies,
and that Japan joined the ranks of the advanced auto-producing countries.
Japan’s automobile industry is now a global player in terms of technology,
production, and sales. Holding a key role as a core industry, it
has been an important contributor to Japan’s transformation into
an economic superpower.

Today, with the arrival of a new century, we should give thought
to the next hundred years and to the need to maintain economic prosperity,
as well as the vital and beneficial role of the automobile, so that
our children and grandchildren may enjoy a secure and promising
future. It is a time to stop and reflect, and I believe that it
is also an opportunity for us to take new lessons from the past,
to consider seriously what we can and ought to do for the future,
and then draw up a roadmap accordingly.

From my viewpoint, the first priority is to continue taking on
the challenge of technological innovation, because technological
breakthroughs will offer fundamental solutions to many of the problems
we will need to tackle in the coming years.



Recently, with the threat of global warming affecting all of mankind
and making energy issues all the more urgent, significant progress
has been achieved in the automotive sector with the emergence of
a whole host of advanced technologies, including those using hybrid
systems and fuel cells; and the conventional engine too has seen
revolutionary improvements. The day may eventually come when automobiles
are virtually free from energy-related constraints. In the meantime,
waste disposal and emission issues also need to be satisfactorily
addressed, and again it will be technology that will provide the
basic answers. Technological breakthroughs will in fact set the
stage for sustainable development in the 21st century.

A second major challenge is the international harmonization of
automotive regulations. In the last decade of the 20th century,
automakers worldwide became increasingly involved in global alliances
and cooperative relationships. Capital flow is now no longer confined
by national boundaries, and this may eventually lead to an era of
open competition in a single-market world. In preparation for such
changes, standards for vehicle structure and performance need to
be made uniform, although regional differences will survive to some
extent. There will be greater benefit to consumers worldwide if
open competition is carried out on the basis of shared international
rules.

A third area of focus is innovations in the vehicles themselves.
Much of the 20th century was spent in pursuit of material plenty,
and the automobile can be regarded as a prime example of this trend.
In the 21st century there will be very important progress in vehicle
hardware and, at the same time, tremendous advances in IT to support
vehicle use and operation. For example, IT will be able to understand
a driver’s needs and actually assist with driving; cars may even
appear that can help soothe depression. One of the priorities of
automobile manufacturing in this new century will therefore be to
“integrate” vehicles and drivers via the medium of IT.

These are only a few examples, but I think they make it clear that
the Japanese automobile industry must, at this juncture, thoroughly
consider the directions it will move in and the positions it should
take. Having an optimistic view of the future, making sure our feet
are firmly grounded in practical realities, and moving ahead to
broaden our everyday activities will be most crucial.

In response to the impact of corporate restructuring, Japan’s economy
until very recently was supported largely by government stimulus
measures and increases in exports. Last year, however, we began
to see optimistic signs for the economy, such as expanded investment
in facilities and equipment, particularly in the IT sector.

At present Japan’s automobile industry is also showing some promising
signs. The past year saw year-on-year growth in domestic sales for
the first time in four years, and in domestic production for the
first time in three years. We should take advantage of these trends
to ensure that a full-fledged recovery gets under way. The industry
will do its best to promote growth in, for example, technological
and product development. At the same time, we will continue to work
with the government on taxation issues and the relaxation of regulations.

Other concerns have to do with the automobile’s harmonious integration
with society. Here priority must be given to recycling. In view
of the positive results of JAMA’s approach thus far which has been
based on voluntary action plans, I believe that JAMA should play
a prominent role in establishing a new infrastructure for vehicle
recycling.

Environmental and safety issues are also critical, and our efforts
in these areas should be aimed at increased fuel economy, reduced
emissions, and improvements in vehicle safety. In the latter area,
JAMA should work to put intelligent transport systems, including
Japan’s Advanced Cruise-Assist Highway System, into practical application
as soon as possible. Also, we should maintain our public awareness
activities, including the sponsorship of traffic safety and accident-prevention
campaigns, and continue to encourage the development and dissemination
of cars for the disabled and other special-purpose vehicles.

In the overseas arena, we will carry on our efforts to establish
a dynamic global environment for international business operations.
One such effort is JAMA’s commitment to work in close cooperation
with its counterpart organizations worldwide towards the creation
of internationally harmonized vehicle standards.

The transition into the next one hundred years is just beginning,
and the first steps will be significant. For its part, JAMA will
do its utmost to address, on a cooperative basis, the issues confronting
our industry, so as to build a better future for the generations
to come.

On behalf of JAMA, let me say that we again look forward to your
support and encouragement in 2001.