Toyota, Denso Look to Consolidate Electronics Parts Operations
Japan’s Toyota Motor Corp. recently announced that it has struck a deal with its primary parts manufacturer Denso Corp. to consolidate both companies’ core electronics component operations within Denso.
Toyota said that it will schedule meetings with Denso to discuss handing production of electronics components from its Hirose Plant to the latter, targeting the end of 2019 as the start of the transfer. Both are hoping that by 2022, Denso will have taken over the mass production of electronic components used in Toyota’s vehicles.
As one of the world’s largest auto component manufacturers, Denso build parts ranging from air conditioning systems to semiconductors. Toyota is Denso’s biggest customer, accounting for nearly half of its annual sales. Likewise, Toyota is Denso’s biggest stakeholder, owning 24 percent of the supplier’s shares.