DENSO to Invest $1.6 Billion to Strengthen Development and Production of Automotive Electrification Products and Systems
- Investment, new Electrification Innovation Center and Hirose Plant will shape the future of mobility -
KARIYA, JAPAN, Apr, 05 2019 - (JCN Newswire) - DENSO, the world's second largest mobility supplier, will invest approximately 180 billion yen (US$1.6 billion) over the three years - from FY2018 to late FY2020 - to support its aggressive development and production of electrified automotive products, systems and technologies. To achieve its long-term business goal to create and inspire new value for the future of mobility, DENSO is focused on increasing its performance in the area of electrification.
"DENSO is committed to advancing automotive innovation and anticipating the changing needs of our customers in the transportation industry. Electric vehicles are increasingly becoming the norm throughout the world, and to meet the rising global demand for automotive electrification technologies and products, DENSO will strengthen its ability to develop and produce them," said Yukihiro Shinohara, senior executive office of DENSO.
To accelerate business execution around electrification, DENSO is establishing the Electrification Innovation Center at DENSO's Anjo Plant in Anjo, Aichi, Japan, in May 2020. The Electrification Innovation Center will conduct advanced R&D, develop and test prototypes, and launch mass produce newly developed automotive electrification products, systems and technologies.
In addition, now that DENSO and Toyota Motor Corporation have officially agreed to consolidate their electronic component operations within DENSO, Toyota's Hirose Plant will be transferred to DENSO in April 2020. DENSO will use the Anjo and Hirose Plants to establish safe, efficient and sustainable manufacturing processes for electrification-related components. The superior production lines established at the Plants will be rolled out to DENSO's manufacturing companies and affiliates worldwide.
DENSO has long developed and produced key products for electric vehicles, including inverters and motor generators used in hybrid vehicles and battery packs for mild hybrid vehicles, and it helped pioneer the Prius. Recently, DENSO has partnered with startups to develop software-based solutions to advance innovation in electrification, as well as automated driving, connectivity and shared economy.
DENSO Corp., headquartered in Kariya, Aichi prefecture, Japan has approximately 220 subsidiaries in 35 countries and regions (including Japan) and employs approximately 170,000 people worldwide. Consolidated global sales for the fiscal year ending March 31, 2018, totaled US$48.1 billion. Last fiscal year, DENSO spent 8.8% of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges.
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