The number of finished cars exported from Japan to foreign countries has been decreasing. In the car-importing countries or the main car-producing countries, the production of car parts has been increasing. As a result, it is a matter of common knowledge that the export of car parts from Japan to those countries has been on the decrease.
As for the latter, car parts imported from NIES has been increasing both in Japan and in the main car-producing countries. Consequently, the car industry including parts is about to face a new situation of the division of labor.
To distribute the main car-producing countries properly and to make the plan successful, a multilateral tie-up between capital, technology and sales should be made. Thus, the makers of cars and parts are able to expand the business sometimes independently and at other time in close cooperation with one another.
A distortion produced by the activities of each maker hampers the third level, fourth level and at times even fifth level processes. In consequence of this, the makers are forced to depend on rationalization, which leads to the rearrangement of the grouping of subcontructors. This can be called an aspect of hollowing.
The aim of this paper is to put stress on the rearrangement of the grouping of subcontructors and acquite a dynamic grasp of various phenomena in which the production systems and internationalization work together.