Engine sub-parts and engine components (code number 1 to 5 and 6
respectively), which are the most delicate precision items among car parts, are
recommended to be produced only in Japan. This extreme case occurs because
Japan has substantial precision machinery firms with advanced levels of
manufacturing technology, which provides low defect rates. As a result,
manufacturers in Japan are expected to attain a high level of utilisation. This is
indicated by the black bars on the histogram (see Figure 4).
Looking at the overall materials flow of parts/components, it can be noticed
that international logistics is not very widely activated. In fact, this activity is
considered to be a complementary function of the imbalance of each country's
industrial structure in this region. From this point of view, Japan will still
dominate this activity, and Thailand as well as Malaysia plays a role as the hub
of the ASEAN countries in some sense. Thailand must import engines from
Japan. However, this country can produce other components except engine subparts
and supply electronic instrument components and steering components
for Indonesia, Vietnam, Myanmar and Laos. Malaysia can produce electronic
instruments, pressed body components, steering components, and supply the
latter two items for Laos and Indonesia respectively. The rest of the countries
must be import oriented