Japanese automotive supplier DENSO Corporation announced that it will change its organization and executive responsibility starting January 1, 2019, in order to boost its competitiveness in car electrification and self-driving technology.
“The auto industry has been undergoing a once-in-a-century paradigm shift due to electrification, automated driving, and connected driving. To cope with the paradigm, shift quickly, DENSO will review its organization to increase its competitiveness,” said the company in a statement one day after it announced plans to create a joint-venture with fellow Japan-based auto parts manufacturer Aisin Seiki Co., to develop and sell driving modules used for electric vehicles.
As part of these major changes, DENSO plans to establish a Research & Development division focusing solely on the technology of mobility systems, in which automated driving and connected driving will be its main areas of focus.
The company is also reorganizing other business units, including its thermal systems business group, which will develop a product planning division that focuses on improving the thermal efficiency of vehicles and automotive parts. Such items could include waste heat recovery systems and different metals.
With sales of diesel engines declining and electrified vehicle production increasing, Denso said to be changing its Powertrain Systems Business Group structure to ensure that it meets customer demands faster and more precisely, although no details were provided.
An electrified joint-venture
Regarding the joint-venture with Aisin Seiki, the new company named BluE Nexus will be established in April 2019 to build driving module packages, which consists of transaxles, motor-generators and inverters, all of them key components needed for both partially and fully electric vehicles.
Aisin and DENSO will combine their strengths in electrification to develop a wide range of driving modules and sell them to automakers in Japan and throughout the world. Moreover, BluE Nexus will calibrate them for the diverse needs automakers have for hybrid vehicles (HVs), plug-in hybrid vehicles (PHVs), and electric vehicles (EVs).
DENSO operates six production facilities in Mexico. Three plants are each located in the cities of Apodaca, Guadalupe and Salinas Victoria, in the Northern state of Nuevo Leon. Two other plants are located each in Silao and Irapuato, state of Guanajuato, and one more production site is located in Frontera, Coahuila.