Association, Inc.

Issue No. 3, 2006

Two Decades of Contribution to the Competitiveness of the European Auto Industry

This year marks the 20th anniversary of the start of Japanese automakers’ production activities in Europe with the ‘greenfield’ launch of manufacturing operations in the United Kingdom in 1986.  Over the past two decades, JAMA member companies have invested €14.8 billion in European production and R&D facilities, in the belief that automobiles should be built where they are sold in order to best meet local consumer needs.

European consumers have responded enthusiastically: with their 17 manufacturing plants and 11 R&D centres in the EU, Japanese automakers’ production in the region in 2005 totalled 1,369,556 units, the highest volume ever, representing 8% of total EU vehicle output for the year.  They also now purchase more than €11.24 billion worth of European-made parts annually and create employment for over 200,000 people across Europe.

2005 Performance

JAMA Contributions to the European Economy: A few Facts
Number of EU production facilities 17
Number of EU R&D centres 11
Location of production facilities (number of Member States) 10
Total production (2005, in units) 1.369m
Japanese brands sold in EU that are manufactured in EU 70%
Direct (manufacturing and R&D)/indirect job creation 38,500/163,000
Investment made in the EU by Japanese manufacturers €14.8 b
Purchasing of European parts €11.24 b
Export to outside the EU (in units) 384,220

JAMA members are fully committed to continue building mutually beneficial relations with European parts manufacturers to widen the local benefits of its members’ operations in Europe and to optimise parts purchasing policies.

Through increased parts purchasing from European suppliers, Japanese automakers play an important role in strengthening the competitiveness of European suppliers.  Today, more than 80% of the parts used in the European production plants of Japanese auto manufacturers are delivered by EU parts manufacturers.  This equates to €11.24 billion in 2005, or a 10% increase on 2004.

Relations between Japanese manufacturers and European suppliers will continue to be strengthened, notably through the JAMA-CLEPA Business Conference which has provided a unique forum over the last 10 years for the creation of strong business relationships.  

Japanese auto manufacturers are thus making a solid contribution to Europe’s automotive industry and its economy.  Furthermore, the scale of their investment in the EU is steadily expanding, underscoring their commitment to the present and future needs of the European market.

For more information: Jama brochure 2006