JAPAN AUTO INDUSTRY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00287R000600050002-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 40
• Document Creation Date: December 22, 2016
• Document Release Date: May 12, 2010
• Sequence Number: 2
• Publication Date: January 17, 1982
• Content Type: MEMO

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Lcntrul Intcih,;cncc A cncv
DIRECTORATE OF INTELLIGENCE
MEMORANDUM FOR: Michael Dr i ggs
Deputy Assistant Secretary for Automotive
Industry Affairs
Department of Commerce
SUBJECT: Japan Auto Industry
1. Attached is the additional information you requested
concerning the Japanese automobile industry. More specifically,
the package contains three related, though unintegrated, reports:
1. Growing Financial Strength of Japan's Auto
Producers.
11. Japanese Automotive Production Capabilities.
III. Japanese Automotive R&D.
This information should prove helpful in your assessment of
the competition facing the US auto industry.
2. The attached memoranda reflect information
available as of 14 January 1983. If you have any questions,
please call Chief, Civil Technology and 25X1
Industry Division
Attachments:
As Stated
Duplicate of C05513672: RIP [Sourced
Copy]
GI M 83-10013
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SUBJECT: Japan Auto Industry
OGI/TID/I I(17 January 1982)
Distribution: (Each Copy With Attachment)
Original - Addressee
1 - DCI
1 - DDCI
1 - DCI Registry
1 - ExDir
1 - C/PES
1 - DDI
1 - ADDI
1 - DDI Registry
1 - D/OGI
1 - DD/E
1 - C/TID
1 - C/TID/IA
1 - C/TID/CF
8 OGI/PS
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1. Growing Financial Strength of Japan's Auto Producers
Japan's automobile producers now hold the greatest amount of
financial power and flexibility in the world auto industry.
Japanese automakers have successfully generated excess cash
resources, reduced debt and continued capital investments with
little financial dependence on external sources. This financial
strength gives Japanese companies several capabilities:
o to increase investment in R&D for new product and
process technologies;
o to take advantage of market upturns and hold reserves
to cushion downturns;
o to move production off-shore with the lowest capital
costs;
o to invest in new diversified product areas such as
aerospace, housing, and machinery.
The following information is derived from an evaluation of
Japanese company reports. We believe that the collective
financial power of Japanese automakers is probably greater than
is reflected in these annual reports. Since Japanese auto
companies are only final assemblers of components from highly
integrated groups of independently reported subsidiary
operations, the annual reports can underestimate the financial
power of the main firm. Toyota and Nissan, for example, each
have more than 200 subsidiaries, and the value added at Toyota
represents only about 30 percent of the total value of the
vehicle. Furthermore, unconsolidated financial reporting allows
the producers to conceal a variety of transactions.
Moreover, the auto groups themselves operate as
members of even larger industrial/financial groups which produce
additional access to broad financial, strategic, material, and
Indicators of Financial Growth
The financial strength of Japan's automakers has increased
steadily over the past decade. With a high quality, fuel
efficient product line and an aggressive marketing strategy,
Japanese firms have been able to maintain sales during both
market downturns of the past decade (1974-75 and 1980-81)
(Table 1). These high sales volumes, in conjunction with their
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strategies
returns on
2). These
reduce
invest
(Graph
to reduce manufacturing costs, have provided high
sales and capital over the past decade (Graphs 1 and
substantial returns
long-term debt, further
in the most technologically advanced capital equipment
3). Toyota, in fact, has been debt free since 1978.
To reduce long-term debt and obtain new sources of capital,
Japanese auto firms are increasingly seeking equity funds
(Graph 4). The equity is owned primarily by Japanese financial
institutions, rather than individual shareholders (Table 2). The
Japanese firms' financial positions are further strengthened
because financial institutions have been unconcerned about the
operating characteristics of the companies and a quick return on
investment. Thus , the Firms are allowed to use the capital to
Flexibility of Financial Strength
Even during the recent world auto slump, Japanese firms
done better than their major competitors on the financial
front. Most Japanese auto firms have maintained positive
flows, despite the current slowdown in sales at home
constraints on export volume (Graph 5). Net working
general measure of liquidity, has also remained high
case of Toyota, increased (Graph 6). The combination
cash resources and a low debt has protected Japanese firms
the kind of financial pressures now facing the US and West
from
Japanese automakers are currently using their financial
strength to prepare themselves for the uncertain market
environment of the next few years. A large proportion of each
company's financial resources continue to be used to strengthen
their technological capabilities and manufacturing
efficiencies. Increases in R&D and capital expenditures confirm
the plowback of these resources into the development of the next
generation of products and processes to meet future world markets
(Graph 7 and 8). Some firms, such as Nissan and Honda, are using
a substantial proportion of these funds to establish production
facilities overseas. The opportunity costs remain low because
the Japanese have been able to finance the majority of these
expansions with internal operating funds, not external debt.
The Japanese are also using their strong financial position
to invest in areas outside the firm (Graph 9, See also Balance
Sheets in Appendix). These investments have been made in
subsidiaries and affiliates as well as non-affiliated
companies. To subsidiaries and affiliates, the investments are a
have enabled the producers to
reducing costs, and continue to
cash
and growing
capital, a
or, in the
of excess
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way to provide cheap capital funds, especially for R&D, and a
means to integrate vertically. Investments in non-affiliates
provide auto companies a means of diversifying their financial
base and reducing risks through diversification of product lines
(i.e., countercvclical investments). Toyota, for example, is
rapidly moving into production of modular housing. Other
companies are venturing into machinery, industrialized equipment,
and aerospace--all largely financed from the vehicle sales
Strong Financial Outlook
Industry analysts believe the financial power of the
Japanese will tend to increase, relative to their competitors,
over the next decade. For one thing, the Japanese are not
burdened by large debt, and should be able to use their
diversified investments to counter fluctuations in the automotive
market. US and European producers, on the other hand, are
increasing their level of debt-and capital obligations; in these
circumstances a substantial share of and future increases in
revenues will have to be used to finance debt.
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Japan: Auto Sales in Selected Years
(stated in 1,000 vehicles)
1982*
1981
1980
1978
10,970
11,179
11,042
9,269
7,841
5,010
5,131
5,075
4,509
4,132
Foreign Sales
5,956
6,048
5,967
4,717
3,700
Percentage of which
United States
33 38 43 47 3i
1-?:astern Europe
19 20 21 21 2~1
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GRAPH 1
NET RETURN ON SALES
1972 1974
1976
YEARS
1978 1980 1982
Legend
TOYOTA
NISSAN
HONDA
TOYO KOYGO
ISuzu
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-10+-
t970
RETURN ON TOTAL LONG TERM CAPITAL
1972
r
1974 1976 1978
YEARS
T
19ao
19x2
Legend
TOYOTA
NISSAN
HONDA
TOYO KOYGO
Isuzu
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GRAPH 3
LONG TERM DEBT AS PERCENT OF LONG TERM CAPITAL
INDEXED TO BASE YEAR
W
Z
1974 1976
YEARS
1978 1960 1982
Legend
TOYOTA
NISSAN
HONDA
TOYO KOYGO
ISUZU
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GRAPH 4
INDEX OF SHAREHOLDER EQUITY
1972 1974 1976 1978 1980
YEARS
Legend
TOYOTA
NISSAN
HONDA
TOYO KOYGO
Isuzu
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Table 2
Common Stock Holdings
(Percentnne of Shares Held)
1982
1981 1980
1979
1978
1977
1976
1975
1974
1973
1972
1971
197"
Toyota
By Financial
Institutions
62.7
61.5 61.1
61.0
60.0
58.5
60.0
58.7
58.1
58.1
0
0
U
By Other Corp.
22.0
24.2 24.3
24.1
23.9
24.9
25.1
25.5
25.7
25.2
0
0
0
Other
15.3
14.3 14.6
14.9
16.1
16.6
14.9
15.8
16.2
16.7
0
0
rl
Total
100.0
100.0 100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
n
n
n
Nissan
By Financial
Institutions
57.0
58.8 61.4
61.1
660.4
58.7
57.7
57.2
57.2
0
0
0
0
By Other Corp.
28.0
28.9 30.3
30.3
30.6
29.9
31.0,
31.9
32.5
0
0
0
0
Other
15.0
12.3 8.3
8.6
9.0
11.4
11.3
10.9
10.3
0
0
0
n
Total
100.0
100.0 100.0
100.0
100.0
100.0
100.0
100.0
10n.0
0
0
n
0
Honda
By Financial
Institutions
46.0
43.9 42.0
39.4
36.7
37.4
37.3
35.5
32.5
0
0
0
0
By Other Corp.
20.3
21.7 20.7
21.7
20.8
21.9
22.3
23.1
24.7
0
0
0
0
Other
33.7
34.4 37.3
38.9
42.5
40.7
40.4
41.4
42.8
0
0
0
0
Total
100.0
100.0 100.0
100.0
100.0
100.0
100.0
100.0
100.0
0
0
0
n
Toyo Kogyo
By Financial
Institutions
NA
42.6 41.0
55.7
49.5
48.4
49.0
49.9
49.6
50.5
0
0
0
By Other Corp.
NA
16.5 17.1
19.8
16.4
17.1
17.5
17.6
18.2
18.6
0
0
0
Other
NA
40.9 41.9
24.5
34.1
34.5
33.5
32.5
32.2
30.9
0
0
0
Total
NA
100.0 100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
0
0
0
Isuzu
By Financial
Institutions
NA
30.2 30.9
31.7
31.9
30.1
29.4
29.0
29.5
29.5
0
0
0
By Other Corp.
NA
18.8 19.6
20.0
20.3
17.5
18.9
18.5
18.1
17.9
0
0
0
Other.
NA
51.0 49.5
48.3
47.8
52.4
51.7
52.9
52.9
52.6
0
0
0
Total
NA
100.0 100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
0
0
0
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PRIMARY OPERATING CASH FLOW
t
------------------
1970 1972 1974
1976 1978 1980 1982
YEARS
Legend
TOYOTA
NISSAN
HONDA
TOYO KOYGO
ISUZU
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NET WORKING CAPITAL
1970 1972 1974 1976 1978 1960 1982
YEARS
Legend
TOYOTA
NISSAN
HONDA
TOYO KOYGO
ISUZU
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GRAPH 7
CAPITAL EXPENDITURES
1972 1974 1976
YEARS
Legend
TOYOTA
NISSAN
HONDA
TOYO KOYGO
ISUZU
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RESEARCH AND DEVELOPMENT EXPENDITURES
i
Legend
TOYOTA
NISSAN
------------------------------------------------ HONDA
-- TOYO KOYGO
0 -}---
1976
--F--
1977
1978 1979
YEARS
1980
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GRAPH 9
INVESTMENTS AS A PERCENTAGE OF TOTAL ASSETS
1974 1976
YEARS
Legend
TOYOTA
NISSAN
HONDA TOYO KOYGO
ISUZU
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II. Japanese Automotive Production Capabilities
We estimate current Japanese annual automotive production
capability under normal operating conditions (straight time) to
he 11.2 million vehicles (see table 1). Normal operation is
based on two eight hour shifts, 247 days per year. All
subcontractors' assembly capacity is included in this estimate.
We estimate that Japanese auto makers are capable of increasing
production beyond normal operations to a maximum annual total of
13.9 million vehicles.
Observed Practices: Production Rates
Japanese auto in ustrv has operated at up to 15 percent above
normal operating conditions (straight time). Generally a
production target for each assembly plant is set by the company's
management in cgordination with the sales division's projected
product demand. ll Basically they can increase straight time
operating rates the following ways:
o extending each work shift by up to two hours and reducing
maintenance periods between shifts correspondingly.
o extending the work week to up to seven days per week.
We estimate the Japanese are currently able to produce a
maximum of up to 13.9 million vehicles annually if they made
maximum use of longer shift and work week option. Our estimate
assumes the mix of shift and work week schedules and allows for a
1. Japanese auto plants are flexibly designed to react quickly
to changes in the composition of vehicle demand. Due to the
commonality of parts between light trucks and passenger cars much
of the capacity can he changed in three to six weeks to produce
different models or vehicle types; e.g. an existing light truck
facility can be changed to produce the same amount of passenger
cars at the facility Passenger car and light truck capacity
accounts for 90 percent of total production capacity
(see table 3).
In Practice there has been little or no
25X1
25X1
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Production at these rates is limited by the strain of longer
working hours placed on the workforce. The more intense the
production rate, the shorter the period of time the rate can he
sustained.
Wage premiums and bonuses encourage Japanese
autoworkers to accept longer work hours. In fact, straight time
wages account for only 55 percent of total income. Production
bonuses for meeting monthly production targets account for
another 25 percent, and overtime premiums account for the
Future Capability:
We estimate Japanese annual automotive vehicle production
capability will increase by 1.3 million vehicles to a total of
12.5 million vehicles in 1985 (see table 4) based on normal
operating (straight time) conditions. Using the same production
scenerio presented in the previous section we estimate the 1985
maximum annual Japanese production capability will be 15.9
million vehicles (see table 1). Our estimates that appear in
table 3 are based on the following announced plant expansions:
o Toyo Kogyo accounts for more than half of Japan's
expansion. Its expansion plans include three new assembly
plants in Kyushu, '.-Tofu, and Nishinoura, each with a rated
capacity of 241) thousand cars per year.
o Isuzu plans a three year project to increase its annual
productive capacity by 300 thousand vehicles when its new
Fujisawa plant is completed in 1985.
o Suzuki's new plant at Kosai is scheduled to increase its
capacity by 140 thousand mini cars by 1984.
o Fuji's total capacity is to be increased by 100 thousand
vehicles when its Ohizumi plant is completed in 1983.
o Nissan Deisel's new plant at Gunma increases capacity by
20,000 vehicles per year, replacing some obsolete capacity
as its Kawaguchi facilities.
o 'litsuhishi, Daihatsu and Honda plan to increase production
capacity by expanding existing facilities.
Our review of Japanese auto industry reports did not reveal any
plans for plant retirements. As far as we can determine, neither
T
oyota nor `Nissan have announced plans to expand domestic
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Iq
Next 1 Page(s) In Document Denied
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Table 3
Japanese 1982 Production Nix
Percent
Share
Cars Lt.Trucks
tied/Ileavy
Buses
Toyota
Nissan
21
6
1
"its ubishi
35
10
*
Honda
85 ,
15
0
0
Toyo 1:ogyo
19
10
Suzuki
16
84
0
0
isuzu
,uji
Pa ilia tsu
31
66
3
*
}lino
Nissan Diesel
Total
64
26
8
2
Less than one percent of total production.
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III. Japanese Automotive R&D
According to company data, the five major Japanese
automakers are spending roughly $1.5 billion annually on research
and development (R&D). Although this figure includes some
expenditures that went to production facilities instead of R&D,
they do not include the R&D expenditures of some 250 component
suppliers to the industry for the components they produce such as
the automotive divisions at Nippondenso, Mitsubishi Electric, and
Aisan. At this time no estimate can be provided as to the extent
that these suppliers contribute to total automotive research and
development in Japan, but we believe their contribution of the
major auto parts suppliers is substantial. In addition,
companies' R&D efforts also benifit from imported foreign
technologies, such as front-wheel drive technology, and
government supported research programs through direct grants, low
Over the past three years, Toyota, Nissan and Honda have
allocated approximately 60 percent of their research and
development (R&D) budgets to develop front-wheel drive and weight
reduction technologies. The remaining 40 percent has been spent
on technologies aimed at improving the fuel efficiency of engines
and on safety research. As a result of these efforts, by 1986
their average fuel economy is expected to increase up to 20
percent, and 80 percent of small car production is expected to be
Near Term Technology
Based on our discussions with industry experts, we believe
that near term product developments in the Japanese auto industry
will be evolutionary improvements of existing technology in
electronics, aerodynamics and materials rather than revolutionary
developments of new technologies. Japan has taken an aggressive
approach toward increasing the efficiency of their small cars by
improving engine design using multi-valved cyclinders, ceramic
ignition parts, lean burn carborators and swirl combustion
chambers. The Japanese are also continuing to broaden their
product range of both mini-cars and higher priced models. In
addition, they are working to extend their application of: (1)
electronic engine and transmission controls, (2) turbo-chargers
for use in small engines, (3) aerodynamics, (4) electronic
display s stems, and (5) materials to reduce vehicle weight
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Major improvements in manufacturing technology are also
being aggressively developed by the Japanese automakers according
to industry experts. Toyota and Toyo Kogyo are at the forefront
in moves to increase productivity. With well honed management
techniques already in place, the Japanese are placing greater
emphasis on the application of robotics, CAD/CAM and flexible
manufacturing systems. Industry experts estimate the Japanese
will increase productivity 20 percent in the late 1980's by
increasing the use of automation in the manufacturing process.
Toyo Kogyo and Toyota, for example, are using their assembly
facilities at Hofi.i and Tawahara respectively as test facilities
for a series of new automated stamping presses. The process will
virtually eliminate labor in the entire stamping to assembly
process. Once the Japanese are satisfied with the process, it
will be employed in virtually all assembl facilities 1111 1
Longer Term Focus
Longer term R&D efforts focus on gas turbine engine
technology, ceramic diesel engines, and composite materials.
Industry experts we have consulted with believe that most of
these technologies will not have serious commercial application
until the late 1980's at the earliest. The Japanese, however,
are making significant protress in applying ceramic materials to
automotive engines and have successfully road tested diesel
engines with ceramic parts. Ultimately, the goal of this
research is an engine with heavy use of ceramic parts that would
improve fuel economy by increasing an engine's thermal efficiency
and reducing overall car weight by eliminating the need for
cooling systems. Toyota has recently announced the development
of an aluminum piston reinforced with alumina-silica ceramic
fibers. The introduction of these composite pistons is another
significant step toward the use of ceramics in engines. Japanese
ceramic materials are high quality, but available information
suggests that fabrication technology needed to apply ceramics in
automobile engines is not as refined as the highly publicized
road tests would indicate. If they can solve their problems.
engine with ceramic components by 1990
25X1
25X1
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Reported Automotive
Research and Development Expenditures
(Stated in Million US $)
1982
1981 1980
1979
1978
1977
1976
Toyota
616
570 533
427
467
312
238
Nissan
477
464 416
341
334
252
199
Toyo Kogyo
155
138 119
91
88
73
60
Honda
185
201 172
145
139
91
66
Isuzu
97
95 95
89
86
64
51
Exchange rates
used
to convert Yen
into
Dollars
are as
follows;
1982 = 250.0,
1981 =
227.5, 1980 =
217.3, 1979 =
229.7,
1978 = 201.4,
1977 =
256.5, 1976 =
292.5
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o Net Return on Sales
o Return on Total Long-Term Capital
o Long-Term Debt as Percent of Long-Term Capital
o Long-Term Debt Indexed to Base Years
o Primary Operating Cash Flow
o Net Working Capital
o Index of Shareholder Equity
o Investments as a Percentage of Total Assets
o Toyota Motor Corpoation
o Nissan Motor Co., LTD.
o Honda Motor Co., LTD.
o Toyo Kogyo Co., LTD.
a Isuzu Motors Limited
III. Summary Balance Sheets
o Toyota Motor Corporation
o Nissan Motor Co., LTD.
o Honda Motor Co., LTD.
o Toyo Kogyo Co., LTD.
o Isuzu Motors Limited
Exchange Rates
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Data for Graphs
Net Return on Sales*
(percentage)
1982
1981
1980
1979
1978
1977
1976
1975
1974
1973
1972
1971
1970
Toyota
Ni
3.7
3.8
4.3
3.6
4.4
5.1
5.0
2.7
2.9
__
5.2
____
4.2
3.8
5
2
ssan
H
d
2.7
2.9
3.2
2.8
3.6
4.2
3.0
1.3
3.3
4.1
3.4
3.6
.
3
7
on
a
T
K
1.6
2.2
2.2
1.7
2.1
2.3
2.1
2.1
3.1
3.8
3.7
3.8
.
5
1
oyo
ogyo
I
7.6
1.7
1.5
0.9
0.4
0.2
0.2
(0.3)
1.0
1.8
2.4
3.0
.
4
1
suzu
4.3
1.2
0.7
2.0
2.4
1.3
1.7
(2.5)
(0.6)
(0.9)
(1.8)
(0.2)
.
0.9
* (Profit/Sales Revenue)
Return on Thtal Inng Tenn-Capital**
(percentage)
1982
1981
1980
1979
1978
1977
1976
1975
1
_
_
974
1973
1972
1971
1970
Toyota
Ni
10.8
12.1
12.1
12.2
15.5
17.8
19.0
10.7
_
10.6
20.0
17.3
15
4
20
8
ssan
H
d
7.6
9.4
10.6
9.1
12.6
14.8
10.7
4.2
10.2
12.9
10.4
.
9
2
.
9
6
on
a
T
5.9
8.9
8.1
5.9
7.0
6.6
5.1
4.9
5.8
8.0
8.0
.
9
0
.
15
0
oyo Kogyo
I
11.6
6.9
6.3
3.2
2.5
0.4
0.4
(0.6)
1.9
3.1
3.3
.
3
5
.
4
3
suzu
8.4
3.2
2.1
7.7
9.2
4.4
5.4
(6.8)
1.6
2.0
(3.2)
.
(0.3)
.
2.0 _
**(Net Profit/Long-term debt + Equity)
Note: Long-term debt excludes retirement allowances included in Japanese financial reports.
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 Sanitized Copy Approved for Release 2010/05/12 : CIA-RDP85T00287R000600050002-1
Data for Graphs (cont'd.)
1"q-Term Debt as Percentage of Long-'I'enn Capital*
1979
1978
1977
.1976
1975
1974
1973
1972
1971
1911)
Toyota
0.0
0.0
0.5
0.0
0.1
0.8
2.7
5.0
3.6
5.0
7.9
11.0
11.8
Nissan
17.5
12.9
16.3
14.8
18.1
21.0
27.9
31.8
27.6
30.0
40.0
47.9
46.5
Honda
29.4
20.6
24.8
31.0
29.3
38.1
48.9
47.7
45.8
47.2
52.9
52.5
53.4
Toyo Kogyo
36.5
50.5
51.6
59.7
65.8
68.9
70.3
70.4
66.5
66.1
64.4
63.2
61.9
Isuzu
32.4
65.0
47.2
46.5
50.0
53.5
53.5
56.2
51.0
48.1
44.9
42.9
50.o)
*(Long Term Debt/Long Term debt + Equity)
Note.: Long-term debt excludes retirement allowance included in Japanese financial reports.
Above Indexed to Base Year
(1970)
1982
----1981-- 1980
1979
1978
1977
1976
1975
1974
1973
1972
1971
1970
Toyota
0.000
0.000 0.042
0.000
0.000
0.068
0.229
0.424
0.305
0.424
0.669
0.932
1.000
Nissan
0.376
0.277 0.351
0.318
0.389
0.452
0.600
0.684
0.594
0.645
0.860
1.030
1.000
Honda
0.550
0.386 0.464
0.581
0.549
0.713
0.916
0.893
0.858
0.884
0.991
0.983
1.000
Toyo Kogyo
0.590
0.816 0.834
0.964
1.063
1.113
1.136
1.137
1.074
1.068
1.040
1.021
1.000
Isuzu
0.637
1.277 1.228
0.927
0.914
0982
1.051
1.104
1.001
0.945
0.882
0.843
1.000
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 Sanitized Copy Approved for Release 2010/05/12 : CIA-RDP85T00287R000600050002-1
Data for Graphs (cont'd.)
Primary Operating Cash Flow*
(millions of Dollars)
1982 1981 1980 1979 1978 1977 1976 1975 1974 19731972 197] 1970
Toyota 431.9 (80.6) 525.7 339.3 229.4 275.6 428.1 76.9 (90.8) 264.4 248.0 (71.2) (0.6)
Nissan 4.1 115.5 257.4 96.0 215.0 180.7 21.0.9 19.4 5.3 88.2 75.5 (38.5) (1.7)
Honda (17.8) (3.8) 12.9 (16.1) (36.6) (3.7) (8.0) (8.1) (7.3) 48.5 41.4 15.5 8.9
rlbyo Kogyo NA (125.5) (72.0) 76.2 31.6 16.7 27.8 52.1 (73.3) (66.1) (68.9) 23.5 29.4
Isuzu NA (80.3) (150.5) 101.9 39.8 36.6 57.0 (53.5) (52.5) (29.1) (28.4) (2.2) (20.0)
*(Net Profit + Depreciation) - Capital Spendirq
Note: Negatives for Honda reflect large growth in plant and equipment.
Net Working Capital**
(millions of Dollars)
1982 1981 1980 1979 1978 1977 1976 1975 1974 1973 1972 1971 1970
Toyota 1548.7 889.7 1387.3 1117.7 1176.7 858.6 529.7 227.0 216.1 364.0 240.9 105.6 109.1
Nissan 484.7 315.4 470.0 234.7 243.7 189.9 69.1 40.2 41.0 131.5 124 7 136.8 125.7
Honda 78.4 1.7 47.2 38.3 102.1 158.4 229.6 230.4 223.1 191.5 176.3 137.6 100.9
Toyo Kogyo 116.9 195.2 25.3 334.8 463.8 415.2 359.9 334.9 282.4 352.2 334.9 336.4 267.9
Isuzu 69.7 (102.6) (19) (53.3) (28.7) 4.7 1.2 (54.9) 14.1 82.8 84.0 98.9 38.9
**(current assets - current liabilities)
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 Sanitized Copy Approved for Release 2010/05/12 : CIA-RDP85T00287R000600050002-1
Data for Graphics (cont'd.)
Index of Shareholder Equity*
1982 __ 1981 _ 1980 1979 1978 1977 1976 1975 1974 -1973--- 1972 1971 1'17O
Toyota 10.978 10.087 9.522 7.592 7.788 5.309 3.640 2.766 2.542 2.477 1.694 1.259 1.00()
Nissan 9.721 9.064 8.213 6.946 6.766 4.593 3.108 2.656 2.606 2.466 1.694 1.241 1.000
Honda 7.511 7.731 6.630 5.311 5.715 3.718 2.675 2.451 2.348 1.958 1.604 1.242 1.000
Toyo Kogyo NA 2.805 2.464 1.815 1.952 1.522 1.349 1.334 1.424 1.507 1.326 1.119 1.000
Isuzu NA 3.280 3.263 3.053 3.146 2.193 1.753 1.513 1.788 1.851 1.640 1.534 1.000
*(Shareholders Equity/Equity in Base Year)
Capital Expenditures - See Flow of Funds Statements
R&D Expenditures - See Table in R&D Chapter
Investments as a Percentage of Total Assets**
1982 1981 1980 1979 1978 1977 1976 - 1975 1974 1973 1972 1971 1970
Toyota 20.0 23.2
Nissan 26.0 25.4
Honda 17.6 18.1
Toyo Kogyo NA 5.6
Isuzu NA 20.0
**(Investment/Total Assets)
21.3 19.3 18.5 19.8 20.4 19.1 21.9 21.5 16.5 10.6 11.2
22.2 23.3 22.2 21.4 21.1 19.9 19.6 19.1 17.1 15.8 16.0
15.8 18.8 17.1 17.4 15.9 15.6 14.1 1.4.4 13.5 8.7 10.3
5.8 5.4 4.5 4.6 6.4 6.7 3.6 4.9 4.8 4.1 4.4
18.5 17.8 18.0 16.7 16.3 16.0 12.9 12.0 11.8 11.4 11.6
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 Sanitized Copy Approved for Release 2010/05/12 : CIA-RDP85T00287R000600050002-1
T O Y O T A M O T O R C O R P O R A T I O N
Flow of FLrds Statnnent
(Millic.is of O'lla:s)
1982
1981
1980
1979
1978
Tc.tal Sales
15,398
15,411
15,236
12,202
12,996
8,919
6,827
5,586
4,629
4,508
3,646
2,747
2
179
Percent Sales in OS
20.1
22.0
21.7
21.2
21.1
21.2
20.9
18.6
17.9
19.8
20.8
21.9
,
19.2
.` XLM S OF FINIS:
Net Incune
566
583
661
444
577
455
341
149
134
249
1
2
0
Leas: Cash Divide:.is
101
106
94
79
86
45
30
26
26
25
5
25
1
4
19
113
20
Dec la red
Retai:,ed Ea::,i:gs
465
477
567
365
491
410
311
123
108
224
127
85
93
Delreciation
628
532
486
392
372
239
237
283
226
209
223
169
ill
Total Intec,al Fads:
1,093
1,009
1,620
752
863
649
548
406
334
433
355
254
204
Wig Thin Debt
0
0
0
0
0
0
0
0
0
0
9
19
25
New Capttal Issue
396
0
150
0
0
146
78
0
0
82
2
6
0
Total External Fads:
396
0
150
0
0
146
78
0
0
82
11
25
25
1Ll1AL SOURCES OF FINIS:
1,489
1,009
1,770
752
863
795
626
406
334
515
366
279
229
WE OF F1NLS:
Capital Exle:ditures
762
1,196
621
497
720
418
150
355
451
193
132
344
Misc. Investment
20
250
404
162
44
102
150
25
15
209
141
16
225
20
and all ether
Reduction in Debt
863
795
626
406
334
515
366
279
229
Ltbc:ease/Dec:ease
99
275
326
25
(135)
105
78
91
In Working Capital
(
)
(24)
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 Sanitized Copy Approved for Release 2010/05/12 : CIA-RDP85T00287R000600050002-1
N I S S A N M O T O R CUM PAN Y,
Flow of FLds ;tati,mm~t
i. T U.
(MilIt u:s ut LJ:,llacs)
1982
1981
1980
1979
1978
1977
1976
1975
1974
19 73
1972
1971
1970
Total sales
12,795
12,257
12,607
10,043
11,154
7,892
6,055
4,780
4,342
4,295
3,305
23,79
1,859
Itrtcei~t Sales i:, US
21.0
22.4
23.8
21.2
19.6
16.8
15.2
16.9
13.6
15.7
14.4
15.9
11.1
xnzc~;s (F Fv412; :
Net h,:une
344
378
402
285
401
333
179
63
142
175
113
85
69
Less: Cash Dividc:,ls
92
81
84
65
61
38
30
29
30
26
22
19
18
DL--- la - ad
Retaii,od Earnings
252
297
318
220
340
295
149
34
112
149
91
65
51
U:,ceciatiun
446
391
392
313
310
193
176
181
183
181
156
100
82
Total Interval Finds:
698
688
710
533
650
488
325
215
295
330
247
165
133
tc.:g T m Debt
599
38
248
94
150
83
88
217
77
79
89
142
124
New Capital Issue
317
176
18
172
15
112
2
7
5
93
21
0
0
Total Extert,al Futils
826
214
266
266
165
195
90
224
82
172
.110
142
124
USE OF FtNLS:
Capital Expenditures
787
653
538
502
495
345
144
224
319
268
194
223
153
Misc. Investment
384
329
123
168
139
88
132
99
57
108
76
63
75
aid all chter
Reductiun it, Debt
luDkL USE OF
F1NI5
Increase/Ibcrea;e in
li,rkirg Capital
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 Sanitized Copy Approved for Release 2010/05/12 : CIA-RDP85T00287R000600050002-1
11ONDA
MOTOR COMPAN Y,
Fluty of Fuds Stalan,cct
(Mi1l less c.f IL11a:s)
LTD.
1982
1981
1980
1979
1978
1977
1976
1975
1974
1973
T,,tal sales
i e"t sal(-; i;, I6
6,176
38.0?
5,911
38.5
4,923
41
4
4,016
44
4
4,219
2,607
1,929
1,718
1,253
1,197
1
121
942
680
.
.
38.8
34.3
27.0
24.0
9.7
11.0
,
7.1
3.1
1.0
9CiddL}_S (IF FINIS:
Net Ic. -ui e
97
133
109
70
87
61
less: Cann Dividends
Det? la : al
30
30
26
23
25
17
41
I5
36
12
39
12
46
12
42
11
36
10
34
9
Retau,ei Ear:,i gs
67
103
83
47
62
44
I7elreiiatic.c,
l
162
135
127
108
100
60
26
24
27
34
31
26
25
Tota
Extd_:,al Fads:
229
238
210
155
45
39
35
41
40
31
25
162
104
71
63
62
75
71
57
50
14:y Teen Debt
148
68
42
162
New Capital Issue
6
112
73
0
Total Exte_n,a1 Funds
155
180
115
162
142
10
66
35
34
302
175
168
142
204
85
137
92
84
WE OF FlllIS:
Capital Expeiditu_a;
277
272
222
194
223
124
Misc. I:,vestme:,t and
81
106
1
59
46
94
83
81
38
40
51
51
all ,tte:
49
26
29
35
9
48
Raiurt iul, i:, Cebt
25
27
30
24
19
2
16
11
13
TUrAL LSE CF
FWLE
168
142
2U4
85
137
92
84
In re/Ir
.ease in
1di_lciny Capital
23
3
58
14
30
23
to
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 Sanitized Copy Approved for Release 2010/05/12 : CIA-RDP85T00287R000600050002-1
T O Y O
K O G Y O COM PAN Y,
[.T D.
Flow of Fuds Statc neat
(Millions of [2.llacs)
1982
1981
1980
1979
1978 1977
1976
1975
1974
1973
1972
1971
1970
Total Sales
NA
5,112
4,745
3,636
3,408 2,449
2,012
1,660
1,771
1,665
1,159
805
616
Pe: e:,t Sales iu [h
NA
24.1
23,.6
24.3
20.2 16.3
7.7
10.8
10.2
16.4
9.9
4.0
19XI CPS CE FINIS:
Net In,une
NA
34
72
32
13 4
4
(6)
18
31
28
24
25
less: Cash Dividends
NA
16
14
9
10 8
7
8
14
15
14
12
13
De,-, lased
Retaio'ed Fa:uicgs
NA
18
59
23
3 (4)
(3)
(14)
2
16
14
12
12
De ceciatiou
NA
144
119
98
110 77
60
77
77
71
52
44
43
Total Interval Finds
NA
162
177
121
113 73
57
63
79
87
66
56
55
[-(,:g Te:m Debt
NA
213
132
91
155 151
165
260
160
203
164
137
109
New Capital Issue
NA
23
63
0
0 0
0
0
0
0
0
0
1
Total Exte:ual Funds
NAA
242
195
91
155 151
165
260
160
203
,
164
137
109
USE OF FINIS:
Capital Exltaiditures NA
356
264 54
92 64
36
20
170
168
148
45
38
misc. I:,ves t ire n t NA
12
32 11
(21) (51)
0
77
(16)
11
19
4
6
a:d all other
Reduction in Debt
TIJIAL LSE OF
FINIS
I.?rc:ease/1) c:ease in
3 &rkirg Capital
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I S U 2 U M O T () R S L I M I T E I)
Flw of h'ritds Stat nel,t
(MlI1ll.:s of 1),11a:s)
1978 1977
1976 1975
1974
1973
1972
1971
1970
Total Sales
NA
3,197
3,165
2,766
2
842 1
827
1
Pe_,`er,t Sales i:, us
STXPCES Cr Ft1LE:
Net Ir,cune
Less
C
NA
MA
37
23
55
,
,
67 24
,453 1,191
25 (29)
1,115
959
661
588
552
:
ash Dividends
NA
17
18
18
23 0
7
9
(12)
(1)
5
lix-IA.ed
(3 0
0
0
0
2
8
Retair,ed Eart,i:gs
Deireciat iot,
Total Iotertal Fuds
NA
NA
MA
20
82
102
5
84
89
37
61
44 24
55 46
25 (29)
51 46
7
37
9
33
(12)
30
(3)
29
(3)
7
98
99 70
76 17
44
42
18
3U
2
2a
Log Term Debt
New Capital Issue
Total External Fads
NA
NA
204
0
310
0
72
0
4U 37
0 0
47 62
0 0
58
.0
76
0
51
39
36
:
NA
204
310
72
4U 37
47 62
58
76
0
51
60
99
0
36
NA
306
399
160
139 107
123 79
102
118
69
129
60
USE OF FUNDS:
Capital Expatditures
NA
200
257
148
Misc. I:,vesttne:,t
and all other
NA
92
110
27
82 33
55 24
19 70
10 42
96
31
71
16
47
2
30
4
52
(1)
Red uc t k r, i:, Debt
NA
78
63
59
67 45
34 31
31
39
TOTAL USE Oe
NA
306
399
FUME
160
139 IU7
123 79
102
118
IL, Crease/Iivcrease it,
NA
(64)
(31)
7
Flu:kitg Capital
(
4)
(65) 5
60 (64)
(56)
(8)
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T O Y O T A M O T O R C O R P O R A T 1 0 N
Summary Balance Sheet
(Mi111u:,s -f Ih,11a:s)
A:SL'rS
Cu::ec,t As2ts
4,375
3,569
4,262
3,310
3,418
2,46'1
1,8b2
1,340
987
1,284
905
601
526
Fixed Assets
4,177
4,420
3,672
2,964
3,075
2,106
1,602
504
1
1
438
1
281
,
,
,
1,002
846
610
I:,ves tme:,t s
1,714
1,861
1,686
1,214
1,199
907
707
544
530
551
315
153
12B
P,,pe:ty,Pla:,t, 6 6luipmei,t
la,d
2,464
2,560
1,985
1,750
1,876
1,200
895
961
910
730
688
6
Bu ildi:
s
417
442
439
366
371
233
95
93
86
75
60
93
483
y
Ma:-hi:be
,
t E
i
t
762
714
529
504
528
329
279
291
269
250
218
52
7
39
_y
qu
rt,,
p
Other
963
972
656
632
713
407
325
338
410
331
360
19
38
159
322
432
361
248
264
231
196
179
145
74
50
3
61
221
57
L,ta:gihle Fixed Assets
0
0
0
0
0
IUI'AL ASSETS
8,553
7,989
7,934
6,274
6,493
LIABILII'IBS
Cu :e:,t Liabilities
2,827
2,680
2,875
2,192
2,242
1,621
1,332
1,113
771
920
664
496
417
Lz,a-I>::m Liabilities
4413
437
438
356
368
255
221
213
159
152
129
116
96
Spe. ial Reserves
32
45
65
92
56
159
168
194
278
308
303
233
145
Stc..kft,lde: F:luity
5,254
4,828
4,557
3,633
3,727
2,541
1,742
1,324
1,217
1,185
811
602
479
7UCAL LIABILITY AND F1,31Jrry
8,553
7,989
7,934
6,274
6,493
4,576
3,463
2,844
2,426
2,565
1,907
1,447
1,136
Cc1um:6 may at aid due tc, :,,Lm,di:g.
Sanitized Copy Approved for Release 2010/05/12 : CIA-RDP85T00287R000600050002-1
 Sanitized Copy Approved for Release 2010/05/12 : CIA-RDP85T00287R000600050002-1
H O N D A M O T O R C O., L T D.
Summary Bala?ce Sheet
(Milli&,,s