The Japan Automobile Manufacturers Association, Inc. (Chairman: Masanori Katayama) confirms its adoption of a policy advocating that the business transactions of its member manufacturers be conducted fairly and equitably in compliance with applicable legal provisions.

Moreover, JAMA is working with the Japan Auto Parts Industries Association (JAPIA) across the entire automotive industry supply chain to ensure the competitiveness of Japanese manufacturing and to maintain a sound and sustainable trading environment.

JAMA’s Policy

• That original equipment manufacturers (OEMs) shall in principle assume all basic costs as well as all justifiable cost increases incurred by suppliers for their supply to the OEMs of raw materials and for the energy costs the suppliers incur in that process.
• That OEMs shall assume relevant labor costs incurred by their suppliers, premised on prior consultation with those suppliers.

Next Steps (to be announced at the end of this month)

• The release of a Voluntary Action Plan to Promote Fairness and Improve Productivity and Added Value in OEM-Supplier Business Transactions
• Measures to optimize the effectiveness of the above voluntary action plan

JAMA will continue to work together with JAPIA to ensure fairness in business transactions throughout the automotive industry supply chain, based on the principles of coexistence and mutual prosperity.

*****