The purpose of establishing such an organization was to enable the industry to address a whole host of issues as a unified entity. The imminent liberalization of capital was a particularly pressing matter, and other areas of concern included traffic safety, exhaust emissions, and international trade issues, since JAMA's activities would also include the promotion of exports.

The new association's membership did not incorporate all the members of the two previous organizations. Many members of the Midget Motor Manufacturers' Association of Japan entered into a new cooperative relationship with JAMA, while other companies (especially chassis manufacturers) did in fact merge into the new entity.

The fifteen founding member manufacturers of the new organization were: Aichi Kikai, Isuzu, Kawasaki, Suzuki, Daihatsu, Toyota, Toyo Kogyo, Nissan, Nissan Diesel, Hino, Fuji Heavy Industries, Bridgestone Cycle, Honda, Mitsubishi Heavy Industries, and Yamaha.

The first chairman of the Japan Automobile Manufacturers Association was Katsuji Kawamata, president of Nissan Motor Co., who had also served as chairman of the Automotive Industrial Association, JAMA's predecessor.

The Progress of Growth
Based on the improvements made in the Japanese automobile industry since 1955 in response to a growing domestic market, production expanded dramatically beginning in 1965. In relation to the production of other automobile-manufacturing countries, Japan ranked sixth in 1962, surpassing Italy the following year to take fifth place; surpassing France in 1964 to take fourth place; surpassing the United Kingdom in 1966 to take third place; and surpassing West Germany in 1967 (the year that JAMA was founded) to rank second in the world after the United States, whose production Japan would also surpass in 1980 to become the world's largest producer of automobiles.

Despite this tremendous rise in output, Japanese automobile production differed from that of other countries in terms of the type of automobiles produced (a high percentage of cars with small engine displacement), production infrastructure (multiple-model, small-lot production and small factory size), and the fact that there continued to be mixed, non-stop production of cars and trucks.

These unique characteristics are explained by the development of the automobile industry within the context of Japan's postwar reconstruction process, and by geographical factors as well as road conditions prevailing in Japan.

Japan Becomes a Leading Economic Power
The growth in infrastructure and the development of the parts and materials industries, which began in 1955, were major contributing factors to the rapid expansion of the Japanese automobile industry in the latter half of the 1960s. With a steadily increasing gross national product between 1955 and 1965, Japan was quickly moving forward to join the ranks of the most industrialized nations of the world. In terms of GNP, Japan exceeded the U.K. in 1966 and West Germany and France in 1967, to become the world's second largest economic power after the United States in 1970.

At the same time, the position of the Japanese automobile industry within the national economy also advanced. By 1972 it had become one of Japan's leading industries, producing 10% of the country's total manufacturing output.

Introduction of New Production Technologies
With steady growth in the domestic and export markets, the implementation of new technologies to increase productivity became a top priority for manufacturers beginning in 1965. High-speed automation was introduced when the use of special-purpose transfer machines was extended to each stage of production. To optimize the integration of automation within the production process, new factories were built between 1965 and 1974 to accommodate the new technologies. These developments laid the groundwork for the subsequent introduction of robot technology and also boosted the ability of workers to perform multiple tasks.

Improvements in production line management were implemented with the introduction of digital technology. From about 1970, the use of digital technology for specific tasks was expanded when all these operations went on line, leading in a short while to computerization of the entire manufacturing process, from the earliest stage of product development through final production, including on-line management of the supply of parts and materials.

Also during the 1970s, the steady introduction of new robot technologies gradually eliminated the need for humans to perform dangerous work in manufacturing operations.

As a result of these major technological innovations implemented throughout the production process, new problems confronted the industry in terms of the impact of the changing work environment on workers' morale and productivity. Extensive research and development was carried out by manufacturers in an effort to address these issues.

The Era of Personal Car Ownership
With the rapid growth of motorization in Japan, there was a dramatic increase in the percentage of passenger car sales in Japanese automobile sales overall. Passenger car production exceeded truck production in 1968, and the following year passenger car sales finally exceeded sales of trucks.

The figures speak for themselves. During the 10 years from 1967 to 1976, the number of four-wheeled vehicles owned by Japanese jumped from the 10 million plateau to in excess of 30 million, an increase of more than 20 million. In the 1950s, the United States experienced a 10-year car ownership boom of similar proportions, more than 20 million vehicles. When you consider that Japan's population was about half that of the U.S., the immensity of this consumption explosion begins to settle in.

The Background of Personal Car Ownership
Looking back at the progress of motorization in Japan from the immediate postwar years, we see a transition in passenger car use from mainly commercial use (in the transportation business) beginning in 1945, to business- and government-owned "corporate" use beginning in the mid-1950s, to personal use from about 1965.

The proportion of personal-use car ownership was 14% in 1962, 39% in 1967, and 50.6% in 1970, confirming the flourishing of what was known in Japan as the "my car era".

This dramatic increase in car ownership was a result of the rise in living standards accompanying the rise in personal income. The most popular consumer items in the mid-to-late 1950s - televisions, washing machines and refrigerators - gave way to the "3C" phenomenon -cars, (air) conditioners and color TVs - in the 1960s and '70s. At the same time, the boom in personal car ownership was greatly enhanced by increased opportunities for leisure travel, the development of Japan's road network, and a sharp rise in the number of new driver's licenses issued.

Road improvements from the mid-1960s to the mid-1970s lay the groundwork for the subsequent accelerated development of Japan's road infrastructure. National highways had covered a mere 181km in 1964, but that figure increased to 1,519km by the end of 1974. Meanwhile, the number of driver's licenses issued for driving passenger cars went from 9.02 million in 1965 to 22.89 million in 1974.

All these developments led to growing demands by car users for improved vehicle performance, which manufacturers made every effort to satisfy.

Comfortable, Convenient Cars at Affordable Prices
Passenger cars in the 600cc-1200cc range based on the "people's car" concept became very popular beginning in the mid-1960s. Basic requirements for these cars were, first, that they be less expensive than the standard size cars purchased for "corporate" or high-income personal use; and, second, that they offer better performance and greater comfort and style than midget cars, which were also popular.

Manufacturers did their best to meet the discerning needs of car buyers by introducing popularly-priced models with the comfort and feel of higher-end "deluxe" passenger cars. These cars were a huge success. Sales surged from 97,000 units in 1965 to 780,000 units in 1970, increasing their share of the passenger car market to 44% in 1974.

New Developments in Passenger Car Production
During the same period, small high-performance cars were being marketed which reflected new trends in Japanese automotive technologies (one outstanding example of such trends was the development of the rotary engine by Toyo Kogyo).

The dream of developing larger-sized passenger cars that could compete with foreign-made cars was also becoming a reality at this time. In 1965 Nissan marketed the Nissan President 4000, the largest domestic passenger car, and Toyota followed suit in 1967 with the production of the Toyota Century 3000.

Market Trends for Trucks and Buses
As a result of the growth of the truck market, the use of trucks had swiftly expanded to become the dominant mode (over trains) in the transportation of goods. The number of trucks in use exceeded 10 million by late 1974, with sales totaling 1.5 million units for that same year. Also, the number of buses in use doubled from 102,695 in 1965 to 222,430 in 1974.

Trends in the Motorcycle Industry
Japan's motorcycle production became number one in the world, surpassing France's production levels, beginning in the latter half of the 1950s. In 1960, production totaled almost 1.5 million units; by 1974, that number had grown to 4.5 million units, or a 43.2% share of the 10.45 million units produced globally. Motorcycles in use reached 80 units per 1,000 people in 1965, surpassing Italy's rate of use to be on a par with West Germany. While two-wheeler ownership continued to rise, high-speed motorcycles designed for maximum performance in events such as "motocross" were becoming popular beginning in the late 1960s. In response to this trend, motorcycle manufacturers added powerful new models to the line-up in this special two-wheeler class.

Two-wheeler exports grew rapidly in the late 1960s and early '70s, reaching 3.24 million units in 1974 for a total value of nearly $1.5 billion, firmly establishing the manufacture of motorcycles as one of Japan's top export industries. A large proportion of motorcycle exports were KD units assembled locally, because Japanese manufacturers had been steadily expanding local production facilities since 1965.