DENSO to Strengthen Powertrain Business with Aisan
DENSO Corporation mulls to acquire more stakes in powertrain supplier Aisan Industry Co., Ltd., particularly those owned by Toyota Motor Corporation. DENSO is also studying the possibility of transferring part of its powertrain business to Aisan, which would help strengthen the companies' competitiveness in powertrain and future growth areas.
Under the agreement, DENSO and Aisan will study the feasibility of integrating similar operations in the powertrain businesses of the two companies to improve competitiveness in this area. Limited resources will be shifted to new growth areas to strengthen cooperation and contribute to the future of mobility.
The possibility of transferring the entire business of developing, manufacturing, and selling some products such as fuel pump module in DENSO's powertrain business to Aisan. Powertrain products will continue to be developed and manufactured while increasing the production efficiency and cutting costs.
DENSO and Aisan will study the details based on the basic agreement, with both aiming to finalize such deals towards the autumn of this year. The move by the two companies will be done as the automobile industry shifts to new business landscape to complement the growing expectations on electric vehicles and efforts to reduce carbon emissions and increase fuel efficiency of conventional internal combustion engines.