Japan’s seven major automakers should collaborate more closely on standardizing parts and components to cut costs and stay competitive against low‑cost Chinese rivals, according to Koji Sato, the former Toyota CEO who now chairs the Japan Automobile Manufacturers Association (JAMA).
Sato, who stepped down as Toyota CEO at the end of March, brings a background in development and engineering to the proposal. He knows firsthand how much money goes into non‑customer‑facing parts — wiring harnesses, infotainment hardware, climate control systems, suspension components, battery modules — that can add thousands of dollars per car in design, development and production costs.
Shared parts, separate brands
Under the plan, each automaker would keep control over final product development and design. But a list of “Japan standard” parts would be shared across brands, reducing duplication and streamlining supply chains.
“Right now, the most important theme facing the Japanese auto industry is improving ‘international competitiveness,’” Sato told Automotive News. “We aim to strategically create ‘areas of cooperation’ to improve efficiency, thereby accelerating coexistence in the essential ‘areas of competition.’”
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The idea isn’t new for Sato. He made a similar plea to Toyota’s supplier base in his final address as CEO at the company’s annual meeting in March, urging them to urgently improve productivity.
JAMA has also flagged other areas needing work: talent recruitment, logistics overhaul, simplifying Japan’s complex automobile taxes, infrastructure for autonomous driving, access to raw materials, and commercializing a circular recycling economy.
Chinese competition is squeezing everyone
The pressure from Chinese automakers has been brutal.
Europe’s industry is reeling despite tariff protections, and other markets have watched established players lose ground as Chinese brands adapt products quickly to local tastes. Chinese firms rely heavily on vertical integration and internally developed systems that deploy fast across model lineups — a different approach from the collaborative model Sato is pushing.
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Getting all seven Japanese brands — Honda, Mazda, Mitsubishi, Nissan, Subaru, Suzuki, and Toyota — to agree on standards could slow things down. Product cycles might not align with new system adoption. And Toyota’s sheer size compared to its rivals means its standards could end up forming the backbone of any JAMA standard, giving the biggest player outsized influence.
Still, all seven automakers have seen profitability setbacks lately. That gives Sato’s proposal a willing audience. JAMA hasn’t set formal deadlines, but says the first batch of standardized materials or components should appear within the next year or two.
There’s something quietly radical here: Japan’s automakers, famous for their internal rivalries and proprietary engineering cultures, are being asked to cooperate on the boring stuff underneath the sheet metal. If they pull it off, it could reshape how they compete with China — not by out‑innovating on every bolt, but by saving money on the parts nobody sees.
