Seat suppliers change focus in Japan - International Trends Asia Report

Automotive Industries,  August, 2002  

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Apart from being crosstown rivals, Araco Corp. and Takashimaya Nippatsu Kogyo Co. have traditionally had only one big thing in common--they both supply seats to Toyota Motor Corp.

Now they have another thing in common--along with the other 13 or so other companies that supply seats to the Japanese auto industry. All are in the process of rethinking the way they do business. The reason--to reduce costs.

Toyota, within the framework of its "CCC21" program (standing for Construction of Cost Competitiveness for the 21st Century), has called on suppliers to cut costs 30% by the end of fiscal 2005. And seat makers like Takashimaya Nippatsu and Araco are expected to comply, along with 330 other "Tier One" suppliers that deliver components to Toyota assembly plants throughout Japan.

One measure to bring down costs is to reduce basic seat types, though "basic" means different things to different carmakers. Toyota, for instance, currently purchases an estimated 25 different seat sets from its suppliers, reflecting the number of "platforms" in its model lineup. Over the next three years, the automaker plans to reduce this number substantially as it attempts to use seats interchangeably between B-, C-, C/D- and even D-segment models--from the 1,0L Vitz to the 2.0L Avensis.

Meanwhile, Toyota is stepping up efforts to develop components concurrently with key suppliers, even bulky components like seats. In the case of Takashimaya Nippatsu and Araco, both companies are linked to the automaker's "Caelum" and "Togo" three-dimensional -- CAD/CAM systems.

The result Araco says it can now develop a seat in 12 months, 50% faster than several years ago. That includes styling, design, prototype-making, fabric evaluation, comfortability testing, manufacturing simulation and trial production. In part due to concurrent engineering, Takashimaya Nippatsu has set an annual cost-reduction target at 10% (meaning either 10% lower cost or 10% increased value).

Working against this trend to bring down costs is a shift to multifunctional seats. Araco executive Mitsuyuki Noguchi, chief engineer of the luxury Century before assuming his current position, attributes this to a segment shift away from sedans into sport/utility vehicles and passenger vans. Nearly half of vehicles sold in Japan today are SUVs and passenger vans.

Many of these feature three rows of seats with revolving and foldable second and third rows to create flexible rear seating and extra storage space. As an example, rear seating in Toyota's new Allion van can be folded full-flat, creating a huge, rear storage area.

Designers face the added dilemma of trying to reduce variations (currently numbering around 100 per seat type) while consumers insist on new, more luxurious color and material options with increasingly sophisticated controls. Araco claims that 70% of seats it produces are black, ivory and gray.

ESTIMATED SEAT SALES IN 2001 (IN CAR SETS)

Araco                 1,400,000
T.S. Tech             1,117,000
Tachi-S               1,074,000 *
Takashimaya           1,002,000
Johnson Controls        907,000
Fuji Seat               761,000 **
Toyo Seat               393,000
Delta Kogyo             327,000
NGK Spring              280,000
Kanto Seat              190,000
Marubishi Industry      100,000
others                2,249,000 ***
Total                 9,800,000 ****

* 2000 statistics, ** includes Toyota models, *** included: Shigeru
Industry, Namba Press Kogya, Recar Japan and others, **** estimate

Source: JReports

RELATED ARTICLE: Japan's seat suppliers

Combined Araco Corp. and Takashimaya Nippatsu Kogyo Co. handle 70% of Toyota business, around 2.4 million seat 'sets' in the most recent fiscal year, giving them a one-fourth share of total demand in the Japanese market Moreover, both supply ONLY Toyota or its contract assemblers -- Kanto Auto Works, Ltd., Toyota Auto Body Co., Ltd. and Toyota Industries Corp. (formerly Toyota Automatic Loom Works, Ltd.).

Araco, the nation's top producer, supplies the Celsior luxury sedan, Harrier SUV, Estima passenger van and 15 other models. As supplier of the luxury Celsior end L5430 (export version of the Celsior sold through Toyota's Lexus channel), Araco produces what many regard as the most advanced--and expensive -- seat in Japan and perhaps even the world.

The unit apart from employing the finest leather and cushioning materials, is designed with a series of electric switches to adjust the seat's lumbar supports to the most comfortable position. Comfort is further enhanced by a patchwork of tiny air holes built into the cushions through which cool air flows into the front passenger compartment.

Meanwhile, Takashimaya Nippatsu is the main seat supplier for the Century, Crown, Soarer and Supra. All together, Takashimaya Nippatsu supplies some 20 different models.

Other makers supplying seats to Toyota include Tachi-S Co. Ltd. (main supplier to Nissan Motor Co.), Kanto Seat Co. Ltd. (for models produced by Kanto Auto Works) and Fuji Seat Co. Ltd. (main supplier to Toyota subsidiary Daihatsu Motor Co.).

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