Toyota Motor & Denso to consolidate electronic component operations
Category: #world  By Saipriya Iyer  Date: 2018-06-05
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Toyota Motor & Denso to consolidate electronic component operations

Toyota Motor Corporation & Denso Corporation have reportedly agreed over the considerations to merge their core electronic component operations within Denso Corp.   

Toyota has announced that it will discuss the transferring of auto electronic component production from Hirose unit to Denso Corp. by the end of next year. Reportedly, Denso Corp. is likely to take over production of auto parts used in Toyota cars by 2022.

The strategic business decision is aimed at optimizing resource utilization and eliminating the duplication of production operations within the Toyota Group. Speculations have been raised that both the firms will create a speedy & competitive production structure across the automotive industry over the coming years.

Sources familiar with the development have revealed that the move will help Denso Corporation to become a leader across electronic component sector. The firm would reportedly apply concepts of mass production for delivering high-quality & cost-effective auto electronic components to Toyota Motor Corp.

Considerations such as integration of development sites dispersed between Denso Corp and Toyota would be made so that Toyota Group can set up a new organizational structure. It will also help in combining business operations from advanced development of auto electronic parts to their production, thereby leading to rapid development.

The automobile sector is facing new challenges as a result of technological innovations witnessed in electrification, self-driving, and connectivity.  It has been predicted that with escalated use of electronic control unit of various automotive components, the scope of electronic component operations will expand.

Denso’s high level of expertise as an auto component manufacturer and Toyota’s ability for large-scale vehicle production will help in establishing a competitive development & production structure. Experts view that the deal will assist both the automotive giants to grow their business across various other sectors such as manufacturing of hybrid and electric vehicles.  



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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