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DENSO and Aisan start strengthening competitiveness in powertrain and future growth areas

Auto News - Published on Thu, 23 May 2019

Image Source: Auto Tech Review
The second largest global mobility supplier DENSO and powertrain supplier Aisan have reached a basic agreement based on the board of directors meeting on May 20, 2019 to begin studying the possibility of increasing DENSO’s stake in Aisan, and also transferring part of DENSO’s powertrain business to Aisan. This initiative would help strengthen the companies’ competitiveness in powertrain and future growth areas.

The auto industry is facing a once-in-a-century paradigm shift. Although there are growing global expectations for electrified vehicles, it remains important to reduce the CO2 emissions and increase the fuel efficiency of conventional internal combustion engines. Under the basic agreement, DENSO and Aisan will integrate similar operations in the powertrain businesses of the two companies to improve competitiveness in this area. Limited resources will be shifted to new growth areas to strengthen cooperation and contribute to the future of mobility.

Details of the basic agreement

Studying the possibility of transferring parts of powertrain business from DENSO to Aisan - The two companies will start studying the possibility of transferring the entire business of developing, manufacturing, and selling some products such as fuel pump module in DENSO’s powertrain business to Aisan. Powertrain products will continue to be developed and manufactured while increasing the production efficiency and cutting costs.

Studying the possibility of increasing DENSO’s stake in Aisan to strengthen mutual cooperation - The two companies will start studying the possibility of DENSO’s acquisition of all Aisan shares owned by TOYOTA MOTOR CORPORATION. The increased stake in Aisan will strengthen cooperation to improve competitiveness in future growth areas.

DENSO and Aisan will study the details based on the basic agreement, with the aim of concluding the official agreement in autumn 2019. The business transfer and the increase in stake will be based on approval from the competition law authorities in respective countries and regions.

Source :

Posted By : Rabi Wangkhem on Thu, 23 May 2019
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