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Japanese auto swells R&D to catch up technological innovation

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Tinuku ~ The R&D costs of seven Japanese auto giants swelled to catch up Europe, the United States, South Korea and even China. Japan does not want to be left behind by technological developments in the automotive industry. The research and development spending of seven Japanese auto giants swelled, although revenues continued to decelerate.

Tinuku Japanese auto swells R&D to catch up technological innovation

Automotive manufacturers in Japan have spent around 2.85 trillion yen in fiscal year 2017 or as record highs. They began to crawl to achieve autonomous driving technology that is getting left behind Europe, the United States, South Korea and China. This expenditure is up 7 percent compared to fiscal year 2016.

Honda Motor, Suzuki Motor, Mazda Motor and Subaru spend the most funds. Mitsubishi Motors increased spending on R&D by more than 20 percent, while Toyota Motor and Nissan Motor maintained their record-breaking fundamentals of fiscal year 2015.

The Japanese automaker's profits are shrinking around 10 percent by 2016 or 3.86 trillion yen due to low technological innovation, outstripping competition with startups, North America's main market slowdown and rising outsourcing costs amid labor shortage in Japan.

However, these companies are willing to increase research and development investment to produce environmentally friendly cars, autonomos and other new technologies. A source said Toyota is expected to increase R&D spending by 1.05 trillion yen.

"Instead of giving short-term profit a top priority, we will continue and continue to invest in the future," said Akio Toyoda, President of Toyota.

The heavier the financial burden due to R&D investment should make every car manufacturer need to do more efficient development. One key is to leverage the skills and talents of other companies.

By 2016 Toyota created an artificial intelligence R&D unit in the United States led by external experts, they have also partnered with Nvidia. Collaboration is to accelerate the development of technology.

Honda developed an autonomous drive system with Waymo affiliated with Google. Takahiro Hachigo, President of Honda, said the company is focusing on "open innovations" that borrow knowledge from other industries.

Brand competitors outside of Japan also increased R&D spending. Volkswagen spent 13.6 billion euros in 2016 and rose 0.4 percent in 2017. They also plan to spend 9 billion euros on electrification technology. In the United States General Motors has allocated 8.1 billion US dollars, up 8 percent this year.

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