Jun, 19 2019 18:54 JST

Source: Hitachi, Ltd.

Hitachi Automotive Systems to Accelerate Its Transformation Toward Operational Excellence and Industry Leadership

Signs a put-option agreement to acquire Chassis Brakes International, to create an industry leader in automotive safety solutions

TOKYO, Jun, 19 2019 - (JCN Newswire) - Hitachi Automotive Systems, Ltd., a wholly owned subsidiary of Hitachi, Ltd. (TSE: 6501), has granted KPS Capital Partners, LP a put-option agreement for the acquisition of 100% of Chassis Brakes International B.V. Staff representatives will be consulted as per applicable law, and completion will be subject to antitrust approvals.

The proposed transaction would not only strengthen Hitachi Automotive Systems' chassis and safety systems capabilities, but also enhance the company's motion control capabilities across the whole vehicle, supporting further development and integration of electrification, AD/ADAS technologies and software that contribute to a safer and more sustainable society. Chassis Brakes International's highly experienced global management team, who possess significant knowledge of successful business transformation, will help drive further operational excellence, including quality standards, operating tools and processes, and digitalization.

At the same time, Hitachi Automotive Systems would be investing in a growth segment. The market for safety systems is projected to be sustainable relative to total vehicle production, regardless of the shift from conventional to electric vehicles and the growth of autonomous driving, while the shift from conventional brakes to electrically controlled brakes is projected to accelerate. The combined business would have strong growth potential and be positioned to shape the direction of advanced safety systems via advanced engineering and system design capabilities.

Chassis Brakes International is one of the world's leading suppliers of automotive safety solutions, leveraging a comprehensive portfolio of braking technologies. The company, which is headquartered in Eindhoven, The Netherlands, operates 12 world- class, state-of-the-art manufacturing facilities as well as 11 engineering centers and sales offices in Europe, Asia, India, North America and South America and has nearly 5,500 employees. Chassis Brakes International focuses on developing safer, cleaner, smarter solutions that will support mega-trends impacting the automotive industry, such as connectivity, electrification and autonomous driving. The company had over EUR900 million in sales for the year ended 31 December 2018.

Hitachi Automotive Systems President and CEO, Dr. Brice Koch, said, "The proposed transaction will bring significant further momentum to our transformation toward industry leadership, including by securing top global talent and operational excellence. In addition, by capturing a global leadership position in safety systems, it is in line with our commitment to strengthen core businesses such as power train, chassis and safety systems through operational excellence, alliances and M&A, thereby operating with greater focus and gaining enhanced scale benefits. Having taken steps to refine and focus our business portfolio through divestments during the past year, we are now reinvesting these proceeds to further strengthen our core businesses and build our global presence."

The proposed transaction is consistent with the strategy outlined in Hitachi's new mid- term management plan (MTP), which will contribute to a sustainable society through Hitachi's Social Innovation Business. Positioned within Hitachi's Smart Life Sector, the transformation of the automotive systems business is one of the key initiatives outlined in the new MTP. Contributing to a sustainable society and improvements to people's quality of life, the proposed acquisition of Chassis Brakes International would create a platform for advanced safety systems that will help to reduce road accidents, while also contributing to improved comfort and a reduction of vehicle emissions.

Chassis Brakes International's Chief Executive Officer, Dr. Thomas Wunsche, said, "The automotive megatrends such as autonomous driving, electrification and emissions reduction are driving major changes in mobility. The proposed transaction will enhance Chassis Brakes International and Hitachi Automotive Systems' highly complementary geographic footprints and technological expertise. This exciting combination would enable us to better serve our combined customer base and meet the upcoming challenges of the automotive industry through efficient operations as well as safer, cleaner and smarter innovations and solutions."

About Hitachi Automotive Systems, Ltd.

Hitachi Automotive Systems, Ltd. is a wholly owned subsidiary of Hitachi, Ltd., headquartered in Tokyo, Japan. The company is engaged in the development, manufacture, sales and services of automotive components, transportation related components, industrial machines and systems, and offers a wide range of automotive systems including engine powertrain systems, electric powertrain systems and integrated vehicle control systems.

For more information, please visit the company's website at http://www.hitachi- automotive.co.jp/en/.


About Hitachi, Ltd.
Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, delivers innovations that answer society's challenges, combining its operational technology, information technology, and products/systems. The company's consolidated revenues for fiscal 2017 (ended March 31, 2018) totaled 9,368.6 billion yen ($88.4 billion). The Hitachi Group is an innovation partner for the IoT era, and it has approximately 307,000 employees worldwide. Through collaborative creation with customers, Hitachi is deploying Social Innovation Business using digital technologies in a broad range of sectors, including Power/Energy, Industry/Distribution/Water, Urban Development, and Finance/Social Infrastructure/Healthcare. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.


Contact:
Hitachi Ltd
Corporate Communications
Tel: +81-3-3258-1111
Source: Hitachi, Ltd.
Sectors: Automotive

Copyright ©2019 JCN Newswire. All rights reserved. A division of Japan Corporate News Network.

Related Press Release


Hitachi Young Leaders Initiative Inspires Youth Leaders to Become Change Makers through Digital Transformation
July 09 2019 16:04 JST
 
"Hitachi Origin Park (tentative name)" to Open in Hitachi City, Ibaraki Pref., in 2021
July 03 2019 17:05 JST
 
Announcement of Share Transfer of Hitachi Automotive Systems Subsidiary to Hitachi Transport System
June 27 2019 17:34 JST
 
Hitachi Automotive Systems Stereo Camera Adopted in Suzuki's EVERY Light Commercial Vehicle and EVERY WAGON Light Passenger Vehicle
June 26 2019 17:05 JST
 
Hitachi and Virtusa Partner to Advance AI in Financial Services
June 04 2019 08:29 JST
 
Hitachi Receives 106 Elevator Order for Large-scale Office Buildings in Hyderabad, India
June 03 2019 10:07 JST
 
Hitachi Receives Order for 174 Elevators, Escalators and Moving Sidewalks for Suvarnabhumi International Airport in Thailand
May 30 2019 15:39 JST
 
Hitachi Signs Contract with HIMED Xuzhou City, Jiangsu Province, China to Deliver Particle Therapy System
May 30 2019 15:16 JST
 
Hitachi and Hitachi Transport System Roll out Vehicle Sharing Service to Benefit Thailand's Logistic Sector
May 29 2019 16:55 JST
 
Hitachi Rail STS Starts Proof of Concept of a New Digital Ticketing Solution for the Public Transportation Operator in Italy
May 29 2019 14:56 JST
 
More Press release >>

Latest Press Release


More Latest Release >>