Toyota Motor Corporation and DENSO Corporation announced that they have agreed to begin talks toward consolidating the core electronic component operations of both companies within the DENSO electronics business unit.
Currently, advanced development and mass-production development for Toyota’s electronic components, as well as the production of such components, are conducted by both companies.
The considerations to be made under the agreement are to focus on consolidating mass-production development and production within DENSO so Toyota can focus in other aspects of its business.
In the automotive industry, advances in technologies related to electrification, automated driving, and connectivity are accelerating. With the growing application of electronic control of various vehicle components, the importance of electronic component operations is expected to increase further.
DENSO has long independently developed and mass-produced semiconductors for onboard automotive applications, and it develops and produces various electronic components around the world.
By consolidating mass-production development and production of electronic components under DENSO, which has a high level of expertise in the field, both companies aim to establish a speedy and competitive development and production structure.
Doing so also aims to maximize resource utilization, such as by shifting resources created by eliminating duplicate operations within the Toyota Group to new domains that will increase the value of future mobility, thus strengthening the competitiveness of the Toyota Group overall.
Some of DENSO’s manufacturing operations in Mexico that could benefit from this consolidation are the facility in Apodaca, Nuevo Leon, which manufactures instrument clusters, among other products, and a plant in Reynosa, Tamaulipas that makes audiovisual products and other automotive electronics components.