Japanese Automobile Manufacturers:

Japan Automobile Manufacturers Association Table of Contents

Introduction: Meeting the Challenges Ahead 2

Number of Americans Employed by Japanese Automakers and Dealers 3

Map of JAMA Members’ U.S. Manufacturing Plants and Research Facilities 3-4

Locally Built Japanese-Brand Vehicles 5

JAMA Members’ Purchases of U.S. Auto Parts 6

U.S. Exports from Japanese Auto Plants in the U.S. 6

JAMA Members’ U.S. R&D and Design Centers 7-8

JAMA Members’ Environmental Contributions 9-12

New Engine Technology 9

Awards and Accolades 9

Hybrid Vehicles 10

Next-Generation Vehicles 11-12

Japanese Automakers’ Production, Employment, and Investment in the U.S. 13 - 14

Published by JAMA 2009 • www.jama.org

Japanese automakers own and operate 65 manufacturing plants and major R&D and design centers in the U.S. and employ thousands of Americans, some of whom are shown on the cover. The vehicles showcased on the cover include the LEAF, Prius, CR-Z, and the Aero Eco Hybrid Bus.

Page 1 Contributing to the Future of the American Automobile Industry Meeting the Challenges Ahead

As leaders in the world , we have been pioneers in innovation – focusing on the consumer, emphasizing quality and cost control while investing in cutting-edge technological and environmental research. However, like our competitors, our companies, workers, dealers, and consumers have been sorely tested by what is being called the most severe world recession since the Great Depression. The numbers in this brochure reflect that. Yet as we begin to emerge from the economic downturn, we believe our values have positioned us to continue to lead and prosper in a new, restructured and more disciplined market place.

For example, our commitment to the U.S. market has not wavered. Honda opened a new manufacturing plant in Greensburg, Indiana, in 2008, bringing the total number of Automobile Manufacturers Association (JAMA) company manufacturing facilities in the U.S. to a new high of 31. Our combined investments in our American vehicle, engine, and parts manufacturing facilities rose by more than a billion dollars to $33,674,000,000, a major contribution to local economies even in the face of these severe economic conditions. We have increased the number of our American employees devoted to research by 6 percent, a number now approaching 4,000 people working in 34 major U.S. research facilities. Unfortunately, our total employment fell during 2008 as the recession took its toll on the economy. At the end of 2008, we employed 392,635 workers in the U.S., down nearly 8 percent. The largest decrease came in our manufacturing operations. Manufacturing employment dropped 8 percent.

The American automobile industry is being remade, sculpted by the implosion of a market that could not support its costs and consumers who would not support the status quo. Companies that succeed in this new world must reflect the new market realities. Management must be alert to changing conditions, demands and trends and be lean enough – flexible enough – to meet them. There is a revived insistence on value for money, quality, and outstanding design in and trucks that will last. Consumers care about the environment and the safety of their families, and want technology to support their lifestyles in the 21st century.

We believe this new marketplace is the one consumers have been waiting for, and so holds great opportunity for automakers ready to satisfy them. We are continuing to invest, research and build in order to provide the vehicles our consumers demand. We continue to focus our production in North America, where we still make nearly two-thirds of the cars and trucks that we sell in the U.S. This brochure provides the details of the JAMA member company investments in the U.S., and hints about our dreams for the future.

Contributing to the Future of the American Automobile Industry Page 2 Japanese automakers (including distributors) and their Auto Production, dealers employed 392,635 Americans in 2008. Of these, the 31 manufacturing plants employed 57,027, while the automakers’ 34 major R&D and design centers employed Create 3,752. Dealers and distributors employed the rest. (Please see the map for facility locations and types and the chart below for detailed employment figures.)

Manufacturing

Honda Nissan Toyota Honda Mitsubishi Nissan(2) Subaru Toyota(3)

Toyota•GM The Manufacturing plant in Williamstown, West Virginia, began production in 2007 and is capable of producing Toyota Honda 5,000 trucks a year. Toyota

Hino Hino

Nissan Toyota

Toyota

Toyota Motor Manufacturing Kentucky, Inc., located in Georgetown, Kentucky, is the automaker’s largest manufacturing facility outside of Japan. Established in 1986, it builds the Avalon, Camry, Camry Hybrid, Solara, and Venza as well as four-cylinder and V6 engines and powertrain parts.

Number of Americans Employed by Japanese Automakers and Dealers in the U.S. 2004 2005 2006 2007 2008

Japanese-Brand Vehicle Makers’ Manufacturing Employees 55,795 57,370 59,999 62,126 57,027

Japanese-Brand Vehicle Makers’ R&D Employees 3,065 3,593 3,576 3,530 3,752

Japanese-Brand Vehicle Dealers’ Employees 331,098 337,086 339,986 337,468 310,575

Japanese-Brand Vehicle Distributors’ Employees 20,705 21,689 20,868 21,759 21,281

Total Employees 410,663 419,738 424,429 424,883 392,635

Note: There are 6,811 dealer franchises selling Japanese-brand vehicles. Source: Japanese Automakers

Page 3 Contributing to the Future of the American Automobile Industry Investment, and R&D U.S. Jobs R&D

Mitsubishi Toyota (2) Nissan Subaru Honda Isuzu Toyota Mazda Hino Toyota Honda Mazda • Ford Isuzu•GM Mitsubishi Subaru Honda Mitsubishi Honda Honda(2) Honda Toyota Hino Toyota Honda Subaru Toyota

Toyota Toyota Toyota Nissan Toyota Nissan Nissan

Honda Hino Toyota* Hands-on engineering is the principle that guides employees at Honda R&D Honda Americas, headquartered in Torrance, California. Established in 1975, the Nissan Toyota Honda facility conducts local market research and design activities and creates Nissan advanced technologies and products that add value to Honda and vehicles. Including its Torrance Headquarters, Honda R&D Americas now operates 15 R&D facilities in the U.S. Dealers

Map Key

Vehicle Manufacturing Plant Engine Manufacturing Plant

Parts Manufacturing Plant Creating a dealership that is informative, positive, engaging and even fun was the core of Mazda's Retail Revolution initiative begun in 2003 to transform R&D Center * Plant under construction the way people shop for cars. These dealerships, like the facility shown here in Please see pages 7, 8, 13, and 14 Midland, Texas, are distinguished by their bright colors, futuristic vehicle for more details on these facilities. Design Center displays, and interactive terminals that help answer customers’ questions.

Contributing to the Future of the American Automobile Industry Page 4 Locally Built Vehicles Account for 62% of U.S. Sales of Japanese-Brand Vehicles in 2008

In 1986, JAMA members exported about 3.4 million vehicles from Japan to the U.S. In 2008, they exported about 2 million vehicles here, a reduction of about 1.4 million vehicles. In 1986, JAMA members produced 617,000 vehicles in the U.S. In 2008, they produced nearly 3 million vehicles here, an increase of nearly 2.4 million vehicles.

Japanese automakers now supply 62% of their total U.S. sales from their North American plants, compared with less than 12% in 1986.

Rising Production in the U.S. Replaces Exports from Japan: 1986-2008

Source: Japan Automobile Manufacturers Association, Inc. Note: JAMA members’ production figures include their production for GM and Ford.

1986 Percent of Japanese 2008 Brand Sales Locally Manufactured

Sales of imported vehicles

Source: Calculated from sales figures as published in Ward’s Automotive Reports. Sales of locally manufactured vehicles

Page 5 Contributing to the Future of the American Automobile Industry Purchases of U.S. Auto Parts Drop to Below $40 Billion in Recession

The purchases of U.S. parts by Japanese automakers in Japan fiscal year 2008 (April 2008 - March 2009) fell to $39.26 billion from the previous year due to the economic recession, which has sharply reduced auto production and the need for, and purchase of, auto parts.

Source: Japan Automobile Manufacturers Association, Inc. Note: Data includes purchases of U.S. auto parts by JAMA members for vehicles built in both the U.S. and Japan. Exports Contribute to the U.S. Economy

Japanese auto companies export cars from their U.S. plants, in addition to meeting U.S. consumer demand. In 2008, Japanese manufacturers’ affiliates in the U.S. exported 275,127 American-built cars and trucks to countries around the world. These exports consisted of 17.6% of total new vehicle shipments from the U.S.

U.S. Exports from Japanese Auto Plants in the U.S. 2004 2005 2006 2007 2008

Car Exports from Japanese Plants in the U.S. 126,346 180,124 186,058 186,493 142,529

Truck Exports from Japanese Plants in the U.S. 40,162 89,592 89,817 114,395 132,598

Car & Truck Exports from Japanese Plants in the U.S. 166,508 269,716 275,875 300,888 275,127

U.S. Car and Truck Exports 1,163,031 1,225,649 1,442,497 1,606,114 1,563,342

Japanese Plants’ Percentage of U.S. Car and Truck Exports 14.3% 22.0% 19.1% 18.7% 17.6%

Source: Japanese Automakers and U.S. International Trade Commission Data Web Note: All exports include exports to Canada and Mexico.

Contributing to the Future of the American Automobile Industry Page 6 R&D and Design Centers Meet

Given the vast differences between Japanese and American vehicle markets, many of the products that JAMA members sell in the U.S. are designed and built in America. JAMA members’ R&D centers are responsible for tracking consumer trends and developing products that satisfy American tastes and needs.

Name of Company Headquarters, Division Offices Current Functions

Hino Motors Manufacturing Farmington Hills, MI 8 U.S.A., Inc.

Honda R&D Torrance, CA; Raymond & East Liberty, OH; Detroit, MI; 1, 2, 3, 4, 5, 6, 7 Americas, Inc. Denver, CO; Cantil, CA

Isuzu Manufacturing Detroit, MI; Los Angeles, CA 2, 3, 4, 6 Services of America, Inc.

Mazda North Irvine, CA; Flat Rock, MI 1, 2, 3, 4, 5, 6, 7 American Operations, Inc.

Mitsubishi Motors R&D of Ann Arbor, MI; Normal, IL; Washington, DC; 1, 2, 3, 5, 6 America, Inc. Cypress, CA

Nissan Technical Center Farmington Hills, MI; Sacramento, CA; 1, 2, 3, 5, 6, 7 North America, Inc. Canton, MS; Smyrna, TN; Gardena, CA

Nissan Design San Diego, CA 4 America, Inc.

Nissan Technical Center Stanfield, AZ 3 North America, Inc. Arizona Test Center

Subaru Research and Cypress, CA; Lafayette, IN; Ann Arbor, MI 1, 3, 4, 6 Development, Inc.

Toyota Motor Engineering Ann Arbor, MI; , MI; Gardena, CA; Berkeley, CA; 1, 2, 3, 4, 5, 6, 7 & Manufacturing Wittmann, AZ; Sacramento, CA; Cambridge, MA North America, Inc.

Calty Design Research, Inc. Newport Beach, CA; Ann Arbor, MI 4 (Toyota)

Key to Current Functions: 3) Evaluation of vehicles 6) Vehicle design 1) Technical support for procurement of parts for local production 4) Styling & general design 7) Prototype production 2) Evaluation of parts 5) Parts design 8) Technical support & marketing research

Source: Japanese Automakers

Page 7 Contributing to the Future of the American Automobile Industry American Consumers’ Requirements

Mazda North American Operations Mazda operates two R&D centers in the U.S. — one in Irvine, California (pictured here), and the other in Flat Rock, Michigan. Both study technology and market trends, evaluate whether Mazda products conform to North American market standards, and develop designs exclusively for North American consumers.

Honda R&D FC Sport Honda R&D Americas, based in Torrance, California, developed a hydrogen-powered, three-seat concept, which it debuted at the 2008 Los Angeles Auto Show. Shown here, the FC Sport emphasizes the design flexibility and potential of Honda’s fuel cell technology, which consists of a compact, high-efficiency fuel cell stack arranged in an innovative center-tunnel layout.

Honda R&D Ohio Center The Ohio Center of Honda R&D Americas is responsible for complete product development, testing and support of North American supplier development. An Automotive Safety Research Facility at the Ohio Center houses the high-resolution crash barrier block, the world’s first pitching crash test simulator, and other safety labs.

Hino Crew Cab In 2008, Hino’s R&D facility in Farmington Hills, Michigan, developed the Crew Cab pictured here. The truck specifically was designed for the U.S. market.

Toyota Calty Design Research Toyota’s Calty Design Research Facility in Newport Beach, California, provides solutions for Toyota, , and product development and supports North American production design, including color and trim. Activities include research, advanced design, and philanthropic outreach. Calty has contributed exterior styling for such production models as the FJ Cruiser, Tundra, Highlander, Scion xB, and Venza.

Contributing to the Future of the American Automobile Industry Page 8 JAMA Members’ Environmental New Technologies Over the years, Japanese automakers have distinguished themselves for developing high-quality products that are friendlier to the environment — an increasingly important concern for American consumers. Their dedica- tion to preserving the environment also extends to making sure the facilities they operate are in harmony with their natural surroundings.

New Engine Technology Ecological Drive Assist System Honda’s Ecological Drive Assist System enhances fuel economy and is fea- tured in the new Insight hybrid car. i-stop System Ecological Drive Assist System Mazda’s unique engine stop/start system, i-stop, uses combustion energy to restart the engine in just 0.35 seconds, about half the time of most other competing systems.

Dual Injector System (Not Pictured) Nissan has developed a Dual Injector System to improve fuel efficiency in gasoline engines. It will introduce the new system in production vehicles starting early in Japan fiscal year 2010.

Continuously Variable (Not Pictured) Next-generation Continuously Variable Transmission technology, developed by Nissan and its affiliate transmission supplier, Ltd., will appear in compact Nissan vehicles worldwide in the near future. Mazda’s i-stop System Awards & Accolades

JAMA members’ focus on the environment has not gone unnoticed. In 2008 and 2009, Japanese automakers earned recognition for their com- mitment to protecting the environment.

Recognizing Honda's leadership in the area of alternative fuels and hydro- gen-powered fuel cell technology, the Honda FCX Clarity was declared the 2009 World Green Car “2009 World Green Car.” The hydrogen fuel cell-powered FCX Clarity is available on a limited lease basis.

Subaru of Indiana Automotive received the U.S. EPA’s 2008 “WasteWise Gold Achievement Award for Climate Change,” which is awarded to companies that reduce greenhouse gas emissions through waste reduction.

For the fifth consecutive year, in 2009, the U.S. EPA awarded Toyota its “Energy Star” award for the company’s sustained commitment to Toyota Wins Energy Star energy efficiency and management of energy consumption.

Page 9 Contributing to the Future of the American Automobile Industry Contributions in the U.S. Hybrid Vehicles JAMA members first introduced hybrids in the U.S. market in the late 1990s. Since then, their sales steadily increased through 2007 when they reached just over 322,000, before declining somewhat in 2008 to nearly 282,000 due to the economic recession. JAMA members have introduced new hybrid models in 2009 and plan even more in the years to come.

Sales of Hybrid Vehicles in the U.S. Market

Honda Insight

Nissan Altima

Toyota Prius

Japanese Brand U.S. Brand Total Units for Year

Source: Ward’s Automotive Reports; some numbers are revised from the previous edition.

Contributing to the Future of the American Automobile Industry Page 10 JAMA Members’ Environmental Next-Generation Vehicles Having distinguished themselves by being the first to offer hybrid vehicles to consumers worldwide, Japanese automakers continue to work on new technologies to reduce carbon dioxide emissions and the world’s dependence on oil and give consumers an environmentally friendly means of transportation.

Honda FCX Fuel Cell Vehicles Clarity Honda FCX Clarity Honda began leasing the FCX Clarity hydrogen fuel cell vehicle in July 2008 in southern California. The combined sales plan for Japan and the U.S. calls for a few dozen units within a year and about 200 units within three years.

Toyota Fuel Cell Hybrid Vehicle Toyota also is steadily overcoming the technological hurdles Toyota Fuel Cell Hybrid associated with fuel cell vehicles. Japan’s Ministry of Land, Infrastructure and Transport has given Toyota vehicle-type certification for its Fuel Cell Hybrid Vehicle, which features a newly designed FC stack fuel cell that offers a 25% improve- ment in fuel efficiency and a cruising range of nearly 516 miles.

Mazda RX-8 Hydrogen Vehicles Hydrogen RE Mazda RX-8 Hydrogen RE In 2008, Mazda began validating the RX-8 Hydrogen RE’s driving performance on public roads in Norway. The demonstration is part of a special program to demonstrate hydrogen energy infrastructure, including a chain of hydrogen stations along a 360-mile stretch of highway in Norway.

Mazda Premacy Hydrogen RE Mazda Premacy Hydrogen RE Hybrid Hybrid Mazda’s latest eco-car, the Premacy RE Hybrid, features the automaker’s proprietary dual-fuel system, which enables the car to run on gasoline if hydrogen is unavailable. Its interior parts are made from Mazda’s plant-derived biotech materials.

Page 11 Contributing to the Future of the American Automobile Industry Contributions in the U.S. Electric Vehicles Nissan LEAF The Nissan LEAF, the world's first affordable, zero-emission car, goes on sale in the U.S., Japan, and in 2010. Laminated compact lithium-ion batteries that provide a range of more than 100 miles power the vehicle, a medium-size that com- fortably seats five adults. Nissan LEAF

Subaru Plug-in STELLA EV The Subaru Plug-in STELLA Electric Vehicle (EV), which is equipped with a high-performance lithium-ion battery, now is being sold in Japan. The Subaru Plug-in STELLA Electric Vehicle (EV) is based on the mini car.

Mitsubishi i-MiEV Mitsubishi has unveiled the production version of the i-MiEV new-generation electric vehicle. The vehicle, which is now avail- Subaru Plug-in able in Japan, is the culmination of the company’s 40 years of STELLA EV electric vehicle development. The company plans to continue its collaboration with private and public sectors to develop the infrastructure needed to promote the use of electric vehicles.

Plug-In Hybrid Toyota Plug-in Hybrid Mitsubishi i-MiEV Toyota is developing a plug-in hybrid vehicle that can be charged using external power sources based on its hybrid technology, which it has positioned as a core technology for environmentally considerate vehicles. A plug-in hybrid basically operates as an electric vehicle on short trips and as a conventional hybrid vehicle on longer ones. Toyota intends to introduce approximately 500 plug-in hybrid vehicles globally, primarily to fleet customers, to encourage market acceptance and promote understanding.

Toyota Plug-in Hybrid

Contributing to the Future of the American Automobile Industry Page 12 Japanese Automakers’ Production, Employment, and Investment in the U.S.

Name of Location (Status) Products Units Produced Production Employees Total Investment Company in 2008 Capacity ($ million)

Subaru Subaru of Indiana Lafayette, IN Legacy, Outback & Tribeca 183,249 240,000 3,101 1,224 Automotive, Inc. Toyota: Camry

Isuzu DMAX, Ltd. Moraine, OH Diesel Engines 70,058 200,000 561 585 (Joint Venture: GM)

Honda Honda of America Marysville, East Accord, CR-V, Element, 697,583 680,000 11,800 6,590 Manufacturing, Inc. Liberty & Anna, OH Acura TL & Acura RDX Engines 1,073,448 1,180,000 Honda Transmission Russells Point, OH Automatic Transmissions 687,725 800,000 1,100 400 Manufacturing of America, Inc.

Honda Manufacturing Lincoln, AL Odyssey, Pilot, Ridgeline 282,735 300,000 4,500 1,400 of Alabama, LLC & Accord Engines 282,659 300,000

Honda Precision Parts Tallapoosa, GA Automatic Transmissions 282,936 300,000 450 150 of Georgia, LLC

Honda Manufacturing Greensburg, IN Civic 6,851 200,000 1,000 550 of Indiana, LLC

Mazda Auto Alliance Flat Rock, MI MAZDA6 167,258 240,000 3,234 1,900 International, Inc. (Joint Venture: Ford) Ford: Mustang (92,299)ı

Mitsubishi North Normal, IL Eclipse, Galant, 58,357 120,000 1,419 1,683 America, Inc. Eclipse Spyder & Endeavor

Nissan Nissan North America, Smyrna & Altima, Frontier, Xterra, Maxima 312,178 550,000 4,765 3,183 Inc. (Smyrna & Decherd) Decherd, TN & Pathfinder Engines 564,762 950,000

Nissan North America Canton, MS Quest, Titan, Armada, Altima 232,879 400,000 3,375 1,940 Inc. (Canton) & QX56

Data for this chart is continued at the top of page 14, with combined totals at the bottom.

Page 13 Contributing to the Future of the American Automobile Industry Name of Location (Status) Products Units Produced Production Employees Total Investment Company in 2008 Capacity ($ million)

Toyota+ New United Motor Fremont, CA Corolla & Tacoma 271,202 400,000 4,729 1,353 ıı Manufacturing, Inc. (Joint Venture: GM) GM: Vibe* (70,839) (Toyota)

Toyota Motor Georgetown, KY Camry, Camry Hybrid, Avalon, 456,297 500,000 6,855 5,543 Manufacturing, Solara & Venza Kentucky, Inc. Engines 492,114 500,000 TABC, Inc. Long Beach, CA Trucks** 863 n/a 511 268 Catalytic Converters 1,933,899 n/a Steering Columns 171,388 n/a Substrates 2,704,928 n/a Bodine Aluminum, Inc. St. Louis & Troy, MO Cylinder Heads 1,678,405 n/a 977 578 Jackson, TN Engine Brackets 752,639 n/a Cylinder Blocks 1,208,658 n/a

Toyota Motor Mfg., Princeton, IN Sequoia, Sienna, Highlander 208,299 350,000 4,300 3,059 Indiana, Inc. & Tundra*** Toyota Motor Mfg., Buffalo, WV Engines 529,602 540,000 1,054 1,045 West Virginia, Inc. Transmissions 414,677 600,000

Toyota Motor Mfg., Huntsville, AL Engines 271,354 400,000 860 544 Alabama, Inc.

Toyota Motor Mfg., San Antonio, TX Tundra 90,050 200,000 1,850 1,352 Texas, Inc.

Hino Hino Motors Mfg., , CA Class 4-7 Commercial Vehicles 484 0 178 84 U.S.A., Inc. (California) Vehicle Components for 136,320 120,000 Toyota Vehicles

Hino Motors Mfg., U.S.A., Marion, AR Differential, Rear & 106,090 105,000 291 233 Inc. (Arkansas) Suspension-Related Parts for Toyota Vehicles

Hino Motors Mfg., U.S.A., Williamstown, WV Class 4-7 Commercial Vehicles 3,151 5,000 117 10 Inc. (West Virginia)

Total Vehicles 2008 2,971,436 4,185,000 57,027 33,674 Engines 2008 3,283,997 4,070,000

Source: Japanese Automakers; all data as of December 2008 Note: ı Units produced for Ford ı ı Units produced for GM * production ceased in August 2009. **Truck production ceased in July 2008. ***Tundra production ceased in August 2008. + Toyota Motor Manufacturing, Mississippi, Inc. (Blue Springs, MS) is under construction.

Contributing to the Future of the American Automobile Industry Page 14 Japan Automobile Manufacturers Association

www.jama.org

HEAD OFFICE NORTH AMERICA EUROPE

Jidosha Kaikan, 1-30, Shiba Daimon 1-Chome Representative Office U.S. Office European Office Minato-ku, 105-0012, Japan 143 Cecil Street #09-03/4 1050 17th Street, NW, Suite 410 Avenue Louise 287 • Box 9 Tel: 81-3-5405-6126 GB Bldg., Singapore 069542 Washington, DC 20036-5518, USA 1050 Brussels, Belgium Fax: 81-3-5405-6136 Tel: 65-6221-5057 Fax: 65-6221-5072 Tel: 202-296-8537 Tel: 32-2-639-1430 http://www.jama.or.jp (Japanese) Fax: 202-872-1212 Fax: 32-2-647-5754 http://www.jama-english.jp (English) Beijing Office http://www.jama.org Unit 1001B, Level 10 • China World Tower 2 No.1 Jian Guo Men Wai Avenue Beijing 100004 China Tel: 86-10-6505-0030 Fax: 86-10-6505-5856