Denso enters negotiations with Niterra to transfer select product operations

Denso Corporation announced that it has concluded a memorandum of understanding on starting negotiations for the transfer of selected internal combustion engine parts operations to Niterra Co., Ltd.

Per the Toyota-owned company, the move to transfer select internal combustion engine parts operations to Niterra is based on the shifting pace in the automotive industry. Electrification, Denso pointed out, is picking up pace and many companies are trying to evolve internal combustion engines.

Denso explained that under the said circumstances, “the automotive parts industry is expected to work to develop products for electric vehicles, while at the same time maintaining the competitiveness of the industry as a whole through various means including promoting business integration for products for internal combustion whose market is expected to shrink in the future. We will continue to meet the needs and expectations of our customers around the world and also we are expected to contribute to the realization of carbon neutrality.”

In view of the abovementioned factors, Denso has begun negotiations o transfer business operations for its spark plug and exhaust gas sensor products (Oxygen Sensor and Air-Fuel Ratio Sensor) to Niterra.

“Niterra Co., Ltd. boasts some of the world’s leading technologies in its field, and by transferring operations related to these core internal-combustion-engine products to them, Denso aims to enhance the product appeal of internal combustion engines parts by combing technologies and manufacturing capabilities. In addition, Denso will accelerate the development of products for electric vehicles in preparation for full-scale electrification, and will also work on the development of energy management systems which will become increasingly important for electric vehicles. Through these efforts, Denso will be able to offer products that are appealing to customers in terms of both performance and price in the entire automotive market, including internal combustion engines and electric vehicles, and contribute to the early realization of a carbon-neutral society,” Denso wrote in a press release.

Photos from Denso

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