Japan-based automotive original equipment (OE) factories and component suppliers have formed a new alliance to prepare for the future digitization of components and to establish common industry standards.
The newly formed auto design alliance has been named the Japan Automotive Model-Based Engineering (JAMBE) center and will promote model-based development (MBD). JAMBE will share digital models for all automotive parts and components so that an entire car can be designed via computer. By doing so, virtual cars can be driven on the computer, making it easier to test out component issues or discover where air turbulence will appear when driving. Compared to physical test driving, this method will save both time and money.
Mazda has been using this method since the 2000s; it helped them cut the time needed to develop a more fuel-efficient engine in half. Later on, Toyota and Honda also began using this method. However, for small and medium-sized component factories with fewer computer resources, this method is difficult to use. Now with the newly formed JAMBE center, small and medium-sized enterprises (SME) can also take advantage of this method.
In addition to Toyota and Honda, JAMBE members also include Japanese OEs Nissan, Mazda, and Subaru, as well Denso, Panasonic, Mitsubishi Electric, and Aisin Seiki. Some Japan-based SME car component suppliers will also be included.
JAMBE has two goals in order to quickly eliminate the differences between automotive and component manufacturers, improve the overall production efficiency of the automotive supply chain, and welcome the electrification and self-driving future of the automotive industry.
The first is to popularize the use of new technologies. Small and medium-sized component factories do not have the financial resources or technology to keep up with future car trends. Based on the MBD, JAMBE presents each component digitally and builds a virtual car for designers to decide which components are prone to failure so that they can reduce risk. This method saves time and is more efficient than building a physical car.
The second is to establish industry standards to help component factories meet the different OE requirements, save time, and grow rapidly.
In response to global automotive electrification development, the Japanese automotive supply chain has broken traditional norms in recent years and has a lot of momentum, according to auto supply chain sources. These changes are attributed to pressure from both internal and external forces.
External forces include the active pursuit of future cars by Europe, the US, China, and South Korea. The Japanese automotive supply chain has been deeply rooted in traditional business culture and its transformation has been slow. It continues to lead market share in the internal combustion engine (ICE) car market; however, there is an imminent need for faster transformation.
Internal forces include Japan's active pursuit to reduce greenhouse gas emissions and plans to achieve carbon neutrality by 2050. As such, the government has been actively promoting battery electric vehicles (BEV). Toyota, the leading Japanese OE, has repeatedly criticized this move as too aggressive, but the government view remains unchanged. If the Japanese automotive supply chain does not undergo rapid transformation, it is very likely that it will be weakened by the government's policy and thereby be giving up its own market to automakers outside of Japan.
JAMBE's platform-based operations are a major breakthrough for Japan's conservative supply chain, say industry sources. While this platform is open to domestic Japan-based companies, it is still closed to overseas component supply chains.
Europe-based OEs operate on open platforms, with most being group-style operations with many car models that can be used with them. Volkswagen Group is the best representative of this model. Its modular electric toolkit (MEB) was specifically developed to build BEVs. The standardization of components has allowed them to quickly benefit from economies of scale after mass-producing BEVs.
Tesla is the best representative in the startup camp. After the successful sale of the Model 3, Tesla built the Model Y on the same platform. Not only did this improve production efficiency, but it also resulted in another hot-selling car model. The Chinese automotive supply chain is also digitizing for mass production.
