Toyota Motor & Denso to consolidate electronic component operations
Category: #world  By Dhananjay Punekar  Date: 2018-06-05
  • share
  • Twitter
  • Facebook
  • LinkedIn

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.  



About Author

Dhananjay Punekar

Email: [email protected]   

Dhananjay Punekar

Dhananjay Punekar presently develops content for a slew of portals, including Market Size Forecasters and Algosonline. A post graduate in mathematics and business administration, he worked in Infosys BPO Limited prior to switching his professional genre. As a content wr...

Read More

More News By Dhananjay Punekar

AstraZeneca gets import & marketing approval for Durvalumab in India
AstraZeneca gets import & marketing approval for Durvalumab in India
By Dhananjay Punekar

AstraZeneca Pharma India, a division of pharma & biopharma giant AstraZeneca plc, has received a green signal from the Indian drug regulating agency DCGI (Drug Controller General of India) for its drug Durvalumab c...

BP exits deal with Woolworths, retail firm looks out for alternatives
BP exits deal with Woolworths, retail firm looks out for alternatives
By Dhananjay Punekar

BP Plc, a UK based oil & gas firm, has decided to terminate its USD 1.8 billion acquisition deal with Australian retail giant Woolworths. For the record, the British oil & gas company had signed a pact to purch...

Sarepta obtains positive results on DMD therapy, shares skyrocket 50%
Sarepta obtains positive results on DMD therapy, shares skyrocket 50%
By Dhananjay Punekar

The shares of Sarepta Therapeutics Inc., a medical research & drug development firm, climbed up by 50% after the firm released initial results derived from clinical treatment on patients suffering from Duchenne mus...