Nobuo Fujieda, Director and General Manager of Technical Research and Development Div., Daihatsu Motor Co. Daihatsu specializes in "Compacts," including a mini car. Vehicle shown is the latest tall box model.

Daihatsu's model list consists of small and mini cars and commercial vehicles. They like to call them "compact," and proudly tout, "we do compact." Doing compact "in vehicles and cost" is no easy task. "Our mini car is no different from an ordinary sized one, both have four wheels, four doors, four seats, and state-of-the-art four-cylinder engines (on some models), and all-wheel-drive. Customers do not want a company to compromise on quality. They expect good fit and finish, comfort, and superior operating economy. Yet, a car's value is more often judged by its engine displacement. So the mini's price is proportionately lower."

Osakaites are known for their business acumen. They are hard negotiators, seek small hidden profits, and know how to cut cost. Fujieda said, "As a manufacturer, we were born and raised in a humble environment. We sweat and toil. It is our nature. We discovered our tooling at the ten-year-old Shiga factory was less expensive than comparable Toyota equipment of the time. We had negotiated hard to accomplish that task!"

On the other hand, Fujieda recognizes Toyota's superiority in leading-edge technology from which Daihatsu now benefits greatly. "However, we have our own methodology and know-how to accomplish our goal "creating and offering products that satisfy our customers and at the same time generate profits." One such recent example is Daihatsu's small engine expertise, adopted by Toyota for the design of the new ultra-light and compact DOHC 16-valve 1.0-L inline four cylinder engine, which powers the global small car Vitz/Yaris.

When Fujieda designed a high-performance (100 hp/L) twin-cam engine more than a decade ago, he discovered that a variable valve timing mechanism would greatly improve its performance, however, he was prevented from adopting it because of its high cost. The new-generation mini car would grow in length and width, to comply with the Japanese crashworthiness regulation while incurring some mass increase. The engine displacement would remain under the same 0.7 L. Fujieda's choice was VVT-i, an intelligent, variable-intake valve timing system. The VVT-i technology has advanced significantly and its cost has been reduced, thanks in a large part to Toyota's en masse application. Some Osakaites within Daihatsu did not look favorably on the additional feature, again because of its cost factor, however, Fujieda's design won company approval.

In the area of powertrain technology, Fujieda sees two manufacturers who produce both cars and motorcycles, namely Suzuki and Honda, as his toughest rivals. "They draw from their vast experience of motorcycle engines, which are light, compact, and powerful. They are very good in designing small car engines within tight cost limits and in a very short development time frame."

As for vehicle design, mass is a critical factor, especially in the the Japanese mini segment referred to as "Kei," which literally translates to "light." "My instructions to the design team was to make a car as light as possible. Anyone could make a heavy car. Only the best could do a light one," said Fujieda. Again Daihatsu benefits from Toyota's vast accumulation of weight-saving techniques and technology.

Daihatsu's rival Suzuki (they are the Big Two of Japan's mini segment, each vying to be Number One) does a superb job of reducing vehicle mass, with President Osamu Suzuki personally examining components and manufacturing processes with a fine-tooth comb. Fujieda concedes that Daihatsu's new-dimension minis have added some mass, however, this is due to his company placing a top priority in crash safety, which resulted in a mass increase.

It is no easy feat that Daihatsu launched four different body types simultaneously in the new-dimension mini car race, and several months later replaced its light commercial vehicle line. "Many within our company must have been flabbergasted that we actually accomplished that feat. But our main rivals did it, too. It is tough competition out there," said Fujieda. The Japanese light vehicle manufacturers' efforts have been handsomely paying off, as it is the only segment on the distraught Japanese market that has shown growth.

Daihatsu was among the first Japanese manufacturers to procure parts from overseas suppliers, specifically electronic sensors from the company known then as Delco. Fujieda says these parts are competitive in price and Daihatsu is satisfied with their performance and quality. However, when it comes to the systemization and modular-ization approach offered by mega- and major-suppliers, his company has not yet embraced such a concept. "We must maintain rigid quality control, therefore, we would not buy whole systems or modules."

On the other hand, Japanese factories have very limited space, and would be unable to accommodate the supplier's sub-assembly line within or near their own production facilities.