The Trump administration has now started charging an additional 25 percent tariff on all auto imports as scheduled. One parts maker in Japan is resorting to new investment to counter the impact.
Autec, based in Aichi, central Japan, produces metal components used in engines, exhaust systems and elsewhere. They are used in many cars destined for the United States. The firm is worried that the tariff could prompt automakers to switch to US suppliers.
Last month, Autec began discussing how to improve its competitiveness so that its customers stick with it. The company decided to make investments in production equipment.
Autec executive Ogawa Daisuke said: “For carmakers, it’s not just price but also quality that matters. We aim to cut costs by improving productivity while at the same time enhancing quality. We hope that will stop automakers changing to American suppliers in response to the Trump tariff.”
Autec plans to automate its metal presses to improve efficiency. It will also introduce a quality control system that uses artificial intelligence.