June 23, 2020

JAMA to Launch a First-Ever Intra-Industry Mutual Aid Program supporting funds procurement to safeguard human resources, skills, and technologies in the automotive industry
Japan Automobile Manufacturers Association, Inc. (JAMA)

The Japan Automobile Manufacturers Association is launching a program to extend financial support to companies in the automobile manufacturing sector which have been impacted by the COVID-19 crisis.

At a joint conference on April 10 held by JAMA and three partner organizations—the Japan Auto Parts Industries Association (JAPIA), the Japan Auto-Body Industries Association (JABIA), and the Japan Automotive Machinery and Tool Manufacturers Association (JAMTA)—JAMA Chairman Akio Toyoda raised the matter of making “mutual efforts to match capital with” the paramount need to preserve and protect human resources and essential technologies within the industry, exercising discernment predicated on industry expertise.

On the basis of funds deposited by JAMA in a designated financial institution, the program will enable the issuance of credit guarantees so that companies in early need of financial support can quickly obtain loans from their banks (see the diagram below for details).

JAMA will take the lead in introducing this initiative in order to respond promptly to priority financial needs at the present time. We aim to implement this support as soon as possible, in collaboration with JAPIA, JABIA, and JAMTA.

Meanwhile, we will continue to make every effort to overcome the COVID-19 crisis and fulfill our role as an engine of Japan’s economic recovery, by supporting each other based on united efforts within our industry.

Summary Outline of the Automotive Intra-Industry Mutual Aid Program

Responsible entity Japan Automobile Manufacturers Association, Inc.
Fund recipients - Initially, recipients will be JAMA/JAPIA/JABIA/JAMTA member companies impacted by the COVID-19 crisis. (Expansion of program scope to include non-member auto-related companies is under consideration.)
- Recipients will be determined on the basis of various criteria, e.g., possession of development, production, or manufacturing technologies and products essential to Japan’s auto industry and manufacturing infrastructure.
Application process Individual companies are to contact their relevant representative organization (see below) which will provide information on the details of the application procedure and required accompanying documents.

Procedural Flow of the Mutual Aid Program

Funds remittance scheme

Organizations to be contacted for application to the program:

-Japan Automobile Manufacturers Association, Inc. (JAMA) @ tasukeai@mta.jama.or.jp
-Japan Auto Parts Industries Association (JAPIA) @ support@japia.or.jp
-Japan Auto-Body Industries Association Inc. (JABIA) @ support@jabia.or.jp
-Japan Automotive Machinery and Tool Manufacturers Association (JAMTA) @ jamta@jamta.com

Primary program contact: Japan Automobile Manufacturers Association, Inc. @ tasukeai@mta.jama.or.jp

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