Toyota to Transfer Core Electronic Component Operations to Denso, Auto News, ET Auto
On April 1, 2020, the production of electronic components from Toyota’s Hirose plant will be consolidated into Denso. The land, production infrastructure (including buildings, equipment and software) and other elements of the Hirose factory will be transferred to DENSO.
In addition, the development functions for electronic components will be consolidated within Denso. Drawings, development equipment and other relevant items will be transferred to DENSO.
Currently, Toyota’s electronic component operations are carried out by both Toyota and Denso. In the future, these development functions and production operations will be consolidated within Denso.
In June 2018, the two companies entered into a basic agreement to consolidate the core electronic components operations of Toyota and Denso within Denso, and began detailed studies.
By consolidating these operations within Denso, which has a high level of expertise in the field of electronic components, a rapid and competitive development and production structure will be established.
In doing so, the aim is also to maximize the use of resources, for example by shifting the resources created by eliminating duplicate operations within the Toyota Group to new areas that will increase the value of future mobility, thereby enhancing the competitiveness of the Toyota group as a whole.
Initial discussions focused on consolidating production operations by the end of 2019 and development functions from 2022, but in order to ensure a smooth handover and create the new structure more quickly, the two companies agreed. to consolidate both development and production in April 2020.