JAMA Chairman Masanori Katayama outlines the industry-wide efforts needed to ensure that the auto and mobility sector remains a core pillar of Japan's economy.
Co-prosperity across the supply chain
Next, Chairman Katayama addressed the topic of fairness in business transactions. At the end of May, JAMA revised its Voluntary Action Plan to Promote Fairness and Improve Productivity and Added Value in OEM-Supplier Business Transactions.
JAMA is also coordinating with the Japan Auto Parts Industries Association (JAPIA) to ensure that increases in the cost of raw materials, energy, and labor are reflected in prices.
During September, which has been designated as Price Negotiation Promotion Month, JAMA is urging member companies to strengthen their efforts, including sending out letters indicating a willingness to negotiate with suppliers and going a step further to hear their concerns actively.
At the press conference, Chairman Katayama emphasized the need for continual improvement in promoting fair transactions.
Chairman Katayama
We recognize that a crucial issue is ensuring fairness across the entire supply chain, not merely the transactions between OEMs (carmakers) and Tier 1 suppliers.
On July 18, we held a meeting between all JAMA and JAPIA chairmen and vice chairmen to discuss this point. We agreed to strengthen our cooperation further by promoting fair transactions and making the auto industry more competitive.
As a specific example of our efforts, on August 21, we co-hosted a seminar on fair transactions for the member companies of both associations.
Around 500 people attended the event, which featured presentations by legal professionals covering the key points for complying with the Subcontract Act and other regulations.
We plan to continue these joint seminars with JAPIA, expanding both the content and participating companies.
In terms of promoting fair transactions, the most important thing is diligent, ongoing efforts by individual member companies. We recently decided to update our partnership-building declaration made by member company leaders. It aims to create co-prosperity throughout the supply chain, to incorporate commitments to “conducting explicit negotiations” and “working to pass on relevant increases in the costs of labor, raw materials, energy, etc.”
To ensure that such efforts are spread across the supply chain, we will continue to collaborate closely with related organizations, working as one to drive constant improvement and make Japan’s auto industry even more competitive.
Regarding a voluntary emergency review of subcontractor transactions, which was conducted based on recommendations and requests from the Fair Trade Commission, Chairman Katayama indicated that the results included some errors and sections that required corrections related to legal interpretations.