News

DENSO Talks Mobile Security at SAE 2014 Convergence

Press Releases

SOUTHFIELD, Mich. – Global automotive supplier DENSO is joining technology leaders worldwide at the SAE 2014 Convergence, to address evolving electronics technology. SAE Convergence is held Oct. 21-22, 2014 at COBO Center in Detroit, Michigan.

Panel Session: A Secure Personal Mobility Experience
Roger Berg, vice president of North America Research and Development at DENSO International America, Inc. (DIAM), is participating in a panel discussion on Tuesday, Oct. 21 at 2:00 p.m. in Grand Ballroom B, located on Level 2. The focus will be on automotive systems becoming more-interconnected and how critical it is for safety and cyber-security to be assured.

SAE Convergence Sponsor
DENSO also is the SAE 2014 Convergence lanyard sponsor.

Earlier this year, DENSO expanded its Silicon Valley, California office to further support advanced research and development activities in multiple areas of technological innovation, such as mobile security. As part of its substantial innovation efforts, DENSO created a dedicated team in the Silicon Valley office that will aggressively pursue investments into entrepreneurs and startup companies; Berg helps lead these activities in Silicon Valley.

About DENSO Corporation:
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electronics and information and safety. Its customers include all the world’s major carmakers. Worldwide, the company has more than 200 subsidiaries and affiliates in 38 countries and regions (including Japan) and employs nearly 140,000 people. Consolidated global sales for the fiscal year ending March 31, 2014, totaled US$39.8 billion. Last fiscal year, DENSO spent 9.0 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges. For more information, go to www.globaldenso.com, or visit our media website at www.densomediacenter.com.

About DENSO in North America:
DENSO employs more than 17,000 people at 33 consolidated companies and affiliates throughout North America. Of these, 28 are manufacturing facilities located in the U.S., Canada and Mexico. In the U.S. alone, DENSO employs more than 14,000 people in California, Alabama, Michigan, North Carolina, South Carolina, Tennessee, Kentucky, Georgia, Iowa, Ohio, Arkansas, and Pennsylvania. DENSO’s North American consolidated sales totaled US$7.9 billion for the fiscal year ending March 31, 2014.

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DENSO to End Production at DENSO Automotive Systems Australia

Press Releases

KARIYA (Japan) – DENSO Corp. today announced that it has decided to end production at DENSO Automotive Systems Australia in line with the withdrawal of its customers’ from auto production in Australia. DENSO will determine when production will end based on its customers’ schedules.

DENSO started operations in Australia in 1972 and has manufactured several automotive products, including climate control units and radiators, for local customers. In line with the decisions made by its customers to withdraw from the auto production in Australia, DENSO has decided to end its local production. The company will continue with its aftermarket business and services.

DENSO will provide the maximum support necessary, including transitional support and job placement assistance to employees affected by this decision.

“Due to our customers’ decisions to end production, we had no choice but to make this very difficult decision,” said Nobuaki Katoh, president and CEO of DENSO Corporation. “I would like to express my deepest appreciation to our employees and the local community for their support of DENSO in Australia for the past 42 years.”

Profile of the Company

Name DENSO Automotive Systems Australia Pty. Ltd.
President Russell Jopson
Location Victoria, Australia
Establishment 1989
Employees Approximately 400 (as of March 2014)
Business Description Manufacture and sales of automotive climate control units,
radiators, instrument clusters, etc.

 

About DENSO Corporation:
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electronics and information and safety. Its customers include all the world’s major carmakers. Worldwide, the company has more than 200 subsidiaries and affiliates in 38 countries and regions (including Japan) and employs nearly 140,000 people. Consolidated global sales for the fiscal year ending March 31, 2014, totaled US$39.8 billion. Last fiscal year, DENSO spent 9.0 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges. For more information, go to www.globaldenso.com.

About DENSO in North America:
DENSO employs more than 17,000 people at 33 consolidated companies and affiliates throughout North America. Of these, 28 are manufacturing facilities located in the U.S., Canada and Mexico. In the U.S. alone, DENSO employs more than 14,000 people in California, Alabama, Michigan, North Carolina, South Carolina, Tennessee, Kentucky, Georgia, Iowa, Ohio, Arkansas, and Pennsylvania. DENSO’s North American consolidated sales totaled US$7.9 billion for the fiscal year ending March 31, 2014.

Connect with us on Facebook: www.facebook.com/DENSOinNorthAmerica

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U-M Connected and Automated Vehicle Initiative Announces Founding Corporate Partners

Press Releases

ANN ARBOR, Mich. – A select group of companies will be the founding partners in the University of Michigan’s Mobility Transformation Center (MTC), a major public-private R&D initiative that aims to revolutionize the movement of people and goods in society the university announced Friday.

Spanning such sectors as auto manufacturing, suppliers, ITS, insurance, telecommunications, data management, and mobility services (see list below), the MTC’s Leadership Circle will join with government and academic partners to lay the foundations for a commercially viable system of connected and automated vehicles.

Plans call for implementing a working system in Ann Arbor by 2021.

“We are on the threshold of a transformation in mobility that the world hasn’t seen since the introduction of the automobile a century ago,” said Dr. Peter Sweatman, director of the MTC. “Only by bringing together partners from these sectors as well as from government will we be able to address the full complexity of the challenges ahead as we all work to realize the opportunities presented by this emerging technology. I am thrilled with the diversity and global reach of the new ecosystem of companies and agencies we have created. Our Founding Leadership Circle provides a unique nucleus for collaboration, deployment, and rapid learning in connected and automated mobility.”

Connected vehicles, commonly known as V2V, have been tested extensively by the University of Michigan Transportation Research Institute (UMTRI) in the USDOT’s Safety Pilot Model Deployment in Ann Arbor. The results have been used to support the recent Advanced Notice of Proposed Rule Making announcement by the National Highway Traffic Safety Administration (NHTSA). Connected vehicle technology, including vehicles that can communicate with one another and with the surrounding infrastructure (V2I), has the potential to avoid the majority of serious crashes when extensively deployed.

With the help of the Michigan Economic Development Corporation (MEDC), MTC is building on this two-year deployment of approximately 3,000 vehicles to create a major V2V deployment of 9,000 vehicles in Ann Arbor. The Center is also working with the Michigan Department of Transportation (MDOT) and industrial partners to provide sufficient V2I infrastructure in SE Michigan to support an unprecedented deployment of 20,000 connected vehicles.

“This is the next big thing for the state that put the world on wheels,” said MDOT Director Kirk T. Steudle. “We are thrilled to join our partners in private industry and the University of Michigan in supporting groundbreaking research to keep our state in the lead in building the safest and most efficient vehicles in the world.”

In addition to their definitive role for safety, connected vehicles will accelerate the deployment of one of the most exciting concepts in transportation today: vehicle automation. To make the most of this convergence, MTC is developing an off-roadway facility for testing connected and automated vehicles.

Occupying 32 acres on U-M’s North Campus Research Complex, the Mobility Transformation Facility (MTF) is a unique off-roadway cityscape with the broad range of complexities that vehicles encounter in urban and suburban environments. Scheduled to be completed this fall, it includes 4 lane-miles of roads with intersections, roadway markings, traffic signs and signals, sidewalks, benches, simulated buildings, streetlights, parked cars, pedestrians and obstacles such as construction barriers. This facility was designed and constructed in partnership with MDOT and is available to Leadership Circle members to work collectively on big system issues as well as on specific technological developments.

With the goal of accelerating progress in the development and implementation of connected and automated technology, Leadership Circle members will work together to identify emerging opportunities as well as the barriers to realizing them, anticipate and help shape key standards and regulations, and help guide the direction of the research.

“The collective potential of our founding Leadership Circle for innovation and constructive public-private engagement is immense,” said Sweatman. “Working together, this new group of partners will provide a voice of reason in this exciting technological landscape, while moving forward with a sense of urgency for accelerated deployment.”

MTC’s research program will draw on a wide range of expertise from the University of Michigan’s schools and colleges.

“We have key strengths in engineering and science, but the challenges ahead are not just technical,” said Sweatman. “We will engage faculty from across campus to address interrelated legal, political, regulatory, social, economic, and urban planning issues.”

Founding members of the Leadership Circle are each committing a total of $1 million over three years to create a vibrant R&D ecosystem, and to support the MTC and its programs. A broader range of companies will engage in the work of the Center as Affiliates.

“With more than 375 public and private automotive R&D centers representing organizations from around the world, extensive manufacturing facilities, and an exceptional pool of talent, Michigan is uniquely positioned to spark the transformation of mobility worldwide,” said Nigel Francis, senior vice president at the Michigan Economic Development Corporation, Automotive Office. “The MTC is playing a critical role in catalyzing the diverse technologies, talent, and resources from this region and beyond needed to accelerate progress and usher in a new era of mobility.”

The founding members of the MTC Leadership Circle are:

Delphi Automotive PLC
Contact:Kristen Kinley; kristen.kinley@delphi.com; 248-535-3930
DENSO Corporation
Contact:Julie Kerr; julie_kerr@denso-diam.com; 248-372-8260
Econolite Group, Inc.
Contact: Persephone Oliver; poliver@econolite.com; 714-299-5254
Ford Motor Co.
Contact: Susannah Wesley; swesley8@ford.com; 313-594-7903
General Motors Co.
Contact: Daniel Flores; daniel.flores@gm.com; 313-418-2374
Honda Motor Co., Ltd
Contact: Jessica Howell; jessica_howell@hna.honda.com; 313-410-3487
Iteris, Inc.
Contact: Abbas Mohaddes; akm@iteris.com; 949-270-9400
Nissan Motor Co., Ltd
Contact: Wendy Payne; Wendy.Payne@Nissan-USA.com; 248-826-4166
Robert Bosch LLC
Contact: Linda Beckmeyer;,linda.beckmeyer@usbosch.com; 248-876-2046
State Farm Mutual Automobile Insurance Company
Contact: Angie Rinock; Angie.rinock.i4v5@statefarm.com; 269-207-8006
Toyota Motor Co.
Contact: Cindy Mahalak; cynthia.mahalak@tema.toyota.com; 734-788-3214
Verizon Communications, Inc.
Contact: Marie McGehee; marie.mcgehee@verizon.com; 908-229-1894
Xerox Corp.
Contact: Carl Langsenkamp; carl.langsenkamp@xerox.com; 585-423-5782

 

Join the conversation: #GoDriverless. For more information on the University of Michigan’s Mobility Transformation Center, please visit www.mtc.umich.edu.

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Judgment on the Rescission of the Supplementary Tax Assessment Order Based on the Application of the Anti-Tax Haven Taxation Rule

Press Releases

KARIYA (Japan) – On June 28, 2010, DENSO Corp. received a supplementary tax assessment order from the Nagoya Regional Taxation Bureau, pursuant to the provisions of the Special Taxation Act concerning tax havens. The supplementary income assessment was approximately 11.4 billion yen (US$108.3 million) and the additional tax payment was approximately 1.2 billion yen (US$11.4 million), including the local government taxes, covering DENSO’s Singapore subsidiary for the fiscal years ending March 2008 and 2009. DENSO, dissatisfied with the supplementary tax assessment order, has been filing a complaint with the Nagoya District Court for the rescission of the supplementary tax assessment order. On Sept. 4, DENSO received the judgment for this assessment.

Development of the Case:

  • June 28, 2010: DENSO received a supplementary tax assessment order
  • Aug. 26, 2010: DENSO filed an objection with the Regional Commissioner
  • Nov. 24, 2010: Objection filed by the Company was dismissed by Regional Commissioner
  • Dec. 22, 2010: Filing of a petition with the National Tax Tribunal to seek a review
  • Aug. 8, 2011: DENSO filed a complaint with the Nagoya District Court
  • Sept. 4, 2014: Delivery of the judgment by Nagoya District Court

Contents of the Judgment:
The court ruled the rescission of the supplementary tax assessment order. However, 1 billion yen out of 11.4 billion yen of the rescission amount of income which DENSO claimed was dismissed.

Next Steps:
DENSO believes the ruling by Nagoya District Court recognizes the legitimacy of DENSO’s claim and is the result of a reasonable judgment. However, the court dismissed a part of the rescission amount of income, therefore, DENSO plans to file an appeal to Nagoya High Court about the part which was dismissed by the judgment.

About DENSO Corporation:
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electronics and information and safety. Its customers include all the world’s major carmakers. Worldwide, the company has more than 200 subsidiaries and affiliates in 38 countries and regions (including Japan) and employs nearly 140,000 people. Consolidated global sales for the fiscal year ending March 31, 2014, totaled US$39.8 billion. Last fiscal year, DENSO spent 9.0 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges. For more information, go to www.globaldenso.com.

About DENSO in North America:
DENSO employs more than 17,000 people at 33 consolidated companies and affiliates throughout North America. Of these, 28 are manufacturing facilities located in the U.S., Canada and Mexico. In the U.S. alone, DENSO employs more than 14,000 people in California, Alabama, Michigan, North Carolina, South Carolina, Tennessee, Kentucky, Georgia, Iowa, Ohio, Arkansas, and Pennsylvania. DENSO’s North American consolidated sales totaled US$7.9 billion for the fiscal year ending March 31, 2014.

Connect with us on Facebook: www.facebook.com/DENSOinNorthAmerica

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DENSO to Participate at 2014 ITS World Congress

Press Releases

KARIYA (Japan) – Global automotive supplier DENSO Corp. will exhibit a variety of technologies at the 2014 Intelligent Transport Systems World Congress, held at Cobo Center in Detroit, Michigan, from Sept. 7 – Sept. 11. To support DENSO’s vision to have an accident-free and eco-friendly society, DENSO’s exhibit theme is “Technology to keep people safe wherever they drive—Everyday Confidence, Extraordinary Safety.” DENSO will showcase its technologies on Belle Isle in Detroit and on highway I-75 alongside the congress.

DENSO will exhibit systems that are achieved through a combination of sensing and Human Machine Interface (HMI) technologies, as well as products for these systems, to offer “Everyday Confidence, Extraordinary Safety” to all people, including drivers.

An advanced driving support system, which offers the driver information without distractions and cyber security technologies, such as eliminating outside disturbances, will be showcased. Also, an in-vehicle electronic system will exhibit an in-vehicle platform from a vehicle’s perspective.

In addition, DENSO is participating in a technology showcase as part of ITS World Congress, with three live vehicle demonstrations involving “talking car,” or vehicle-to-vehicle (V2V) technology.

The first demonstration, located on Belle Isle, shows how two vehicles seamlessly communicate using both dedicated short-range communications (DSRC) and 4G LTE communications. In the second demonstration, also located on Belle Isle, DENSO will showcase automated driving using the same device that enables “talking car,” or V2V communications. Located on highway I-75, the third demonstration will show how two tractor-trailers can travel in tandem just 36-feet apart, equipped with Peloton’s truck platooning systems, DENSO’s DSRC radios and Meritor WABCO’s safety system.

DENSO has been working to develop technologies and products to help achieve a society free of traffic accidents and will remain committed to help build a safe automotive society for all people around the world, including drivers and pedestrians.

About DENSO Corporation:
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electronics and information and safety. Its customers include all the world’s major carmakers. Worldwide, the company has more than 200 subsidiaries and affiliates in 38 countries and regions (including Japan) and employs nearly 140,000 people. Consolidated global sales for the fiscal year ending March 31, 2014, totaled US$39.8 billion. Last fiscal year, DENSO spent 9.0 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges. For more information, go to www.globaldenso.com.

About DENSO in North America:
DENSO employs more than 17,000 people at 33 consolidated companies and affiliates throughout North America. Of these, 28 are manufacturing facilities located in the U.S., Canada and Mexico. In the U.S. alone, DENSO employs more than 14,000 people in California, Alabama, Michigan, North Carolina, South Carolina, Tennessee, Kentucky, Georgia, Iowa, Ohio, Arkansas, and Pennsylvania. DENSO’s North American consolidated sales totaled US$7.9 billion for the fiscal year ending March 31, 2014.

Connect with us on Facebook: www.facebook.com/DENSOinNorthAmerica

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DENSO Acquires 34 Percent Stake of Hefei Dyne Auto Air Conditioner, a Chinese Aftermarket Compressor Manufacturer

Press Releases

KARIYA (Japan) – DENSO Corporation has acquired 34 percent stake of Hefei Dyne Auto Air Conditioner Co., Ltd., a compressor manufacturer in China, to help grow automotive aftermarket compressor business globally. DENSO completed the transaction on June 24, 2014.

Hefei Dyne manufactures a wide variety of high quality and cost-competitive aftermarket compressors sold in North America, Europe, Central and South America and Asia. With the acquisition, DENSO’s aftermarket compressors will be manufactured by Hefei Dyne and sold through DENSO’s global aftermarket business network. In addition, DENSO will provide engineering support to Hefei Dyne to promote the quality of compressors.

DENSO supplies car air-conditioners, including compressors, to carmakers worldwide. With this new investment, the company now expands the product lineup of aftermarket compressors and enhances aftermarket automotive air-conditioner business.

About DENSO Corporation:
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electronics and information and safety. Its customers include all the world’s major carmakers. Worldwide, the company has more than 200 subsidiaries and affiliates in 38 countries and regions (including Japan) and employs nearly 140,000 people. Consolidated global sales for the fiscal year ending March 31, 2014, totaled US$39.8 billion. Last fiscal year, DENSO spent 9.0 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges. For more information, go to www.globaldenso.com.

About DENSO in North America:
DENSO employs more than 17,000 people at 33 consolidated companies and affiliates throughout North America. Of these, 28 are manufacturing facilities located in the U.S., Canada and Mexico. In the U.S. alone, DENSO employs more than 14,000 people in California, Alabama, Michigan, North Carolina, South Carolina, Tennessee, Kentucky, Georgia, Iowa, Ohio, Arkansas, and Pennsylvania. DENSO’s North American consolidated sales totaled US$7.9 billion for the fiscal year ending March 31, 2014.

Profile of Hefei Dyne Air Auto Conditioner Co., Ltd.

Name Hefei Dyne Auto Air Conditioner Co., Ltd.
Location Hefei City, Anhui Province,,China
President Xie Wenliang
Ownership (Before equity acquisition by DENSO),
100% by Hefei Dyne Investment Co., Ltd.,
(After equity acquisition by DENSO),
66% by Hefei Dyne Investment Co., Ltd.,
34% by DENSO (China) Investment Co., Ltd.
Establishment January 2002
Capital 30 million yuan (approximately US$4.9 million)
Sales 160 million yuan (approximately US$25.9 million)
Employees 314 (as of December 2013)
Business Description Manufacturing and selling aftermarket compressors,
etc.

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DENSO Fined by the Canadian Court for Violation of the Canadian Competition Act

Press Releases

KARIYA (Japan) – On August 20, 2014 (Canada Eastern Standard Time), DENSO Corporation was ordered to pay a fine of CA$2.45 million (approximately 0.2 billion yen) by the Ontario Superior Court of Justice for violation of the Canadian Competition Act in connection with sales in Canada of certain body electronic control units [body ECUs] for motor vehicles.

DENSO has been fully cooperating with the Canadian Competition Bureau’s investigation and also negotiated for the plea agreement. As a result, the plea agreement was concluded and the above fine was ordered.

The payment will be recorded as an extraordinary loss in the second quarter of the fiscal year ending March 31, 2015.

It is DENSO’s policy to comply with all applicable competition laws. DENSO group companies have taken various measures, including implementing more stringent compliance rules, more enhanced compliance training and more meticulous compliance monitoring, so as to further ensure that employees comply with all applicable competition laws.

DENSO is committed to compliance with all applicable competition laws around the world.

*Editors’ note: Body ECUs are in-vehicle computers that control the power supply to certain electrical components and systems, such as smart key systems, mirrors, lighting, and security systems.

About DENSO Corporation:
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electronics and information and safety. Its customers include all the world’s major carmakers. Worldwide, the company has more than 200 subsidiaries and affiliates in 38 countries and regions (including Japan) and employs nearly 140,000 people. Consolidated global sales for the fiscal year ending March 31, 2014, totaled US$39.8 billion. Last fiscal year, DENSO spent 9.0 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges. For more information, go to www.globaldenso.com.

About DENSO in North America:
DENSO employs more than 17,000 people at 33 consolidated companies and affiliates throughout North America. Of these, 28 are manufacturing facilities located in the U.S., Canada and Mexico. In the U.S. alone, DENSO employs more than 14,000 people in California, Alabama, Michigan, North Carolina, South Carolina, Tennessee, Kentucky, Georgia, Iowa, Ohio, Arkansas, and Pennsylvania. DENSO’s North American consolidated sales totaled US$7.9 billion for the fiscal year ending March 31, 2014.

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China’s National Development and Reform Commission Imposes Monetary Sanctions for Violation of Anti-Monopoly Law

Press Releases

KARIYA (Japan) – The National Development and Reform Commission (the NDRC) of China announced today that it decided to impose monetary sanctions on certain automotive suppliers for violation of China’s Anti-Monopoly Law in connection with sales of certain automotive components.

The NDRC’s announcement includes monetary sanction of 150.56 million yuan (approximately 2.5 billion yen) on DENSO Corporation.

The NDRC investigation involved certain automotive suppliers, including DENSO Corporation, and the company has fully cooperated with the authority.

The payment will be recorded as an extraordinary loss in the second quarter of the fiscal year ending March 31, 2015. It will have no material effect on the company’s financial statements.

It is DENSO’s policy to comply with all applicable antimonopoly laws. DENSO group companies have taken various measures, including implementing more stringent compliance rules, more enhanced compliance training and more meticulous compliance monitoring, so as to further ensure that employees comply with all applicable antimonopoly laws. DENSO is committed to compliance with all applicable antimonopoly laws around the world.

About DENSO Corporation:
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electronics and information and safety. Its customers include all the world’s major carmakers. Worldwide, the company has more than 200 subsidiaries and affiliates in 38 countries and regions (including Japan) and employs nearly 140,000 people. Consolidated global sales for the fiscal year ending March 31, 2014, totaled US$39.8 billion. Last fiscal year, DENSO spent 9.0 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges. For more information, go to www.globaldenso.com.

About DENSO in North America:
DENSO employs more than 17,000 people at 33 consolidated companies and affiliates throughout North America. Of these, 28 are manufacturing facilities located in the U.S., Canada and Mexico. In the U.S. alone, DENSO employs more than 14,000 people in California, Alabama, Michigan, North Carolina, South Carolina, Tennessee, Kentucky, Georgia, Iowa, Ohio, Arkansas, and Pennsylvania. DENSO’s North American consolidated sales totaled US$7.9 billion for the fiscal year ending March 31, 2014.

# # #
 

DENSO Announces First-quarter Financial Results

Press Releases

KARIYA (Japan) – DENSO Corporation today announced its global financial results for the first quarter ending June 30, 2014:
  • Consolidated net sales totaled 1,029.1 billion yen (US$10.2 billion), a 3.2 percent increase from the previous year.
  • Consolidated operating income totaled 85.1 billion yen (US$839.1 million), a 16.7 percent decrease from the previous year.
  • Consolidated net income totaled 68.8 billion yen (US$678.7 million), a 20.1 percent decrease from the previous year.

”The sales increased due to the production volume increase. Despite the variable cost reduction and the increase in production volume, the operating income decreased due to research and development expenditures and investment costs that will strengthen future growth,” said Kenichiro Ito, executive director of DENSO Corporation.

In Japan, the shift towards compact cars, as well as the decrease of export sales led to a decrease in sales to 634.3 billion yen (US$6.3 billion), a 3.0 percent decrease from the previous year. The decrease in production volume and the increase in labor costs and other expenses led to an operating income of 55.2 billion yen (US$544.8 million), a 26.6 percent decrease from the previous year.

In North America, an increase in car production, boosted by the steady economic growth, led to an increase in sales to 224.5 billion yen (US$2.2 billion), an 8.3 percent increase from the previous year. As a result of the increase in production volume and the cost reduction effort, the operating income totaled 7.5 billion yen (US$73.9 million), a 19.8 percent increase from the previous year.

In Europe, car production increase due to the economic slump recovery led to an increase in sales to 138.1 billion yen (US$1.4 billion), a 17.1 percent increase from the previous year. Due to the increase in production volume and the cost reduction effort, the operating income totaled 4.0 billion yen (US$39.3 million), a 130.5 percent increase from the previous year.

In Asia and Oceania, the increase of car production mainly in China resulted in a sales increase to 244.8 billion yen (US$2.4 billion), a 5.8 percent increase from the previous year. The increase in labor costs and the expenditure on the establishment of plants and technical centers for strengthening future growth led to an operating income of 17.2 billion yen (US$169.8 million), a 19.4 percent decrease from the previous year.

In other areas, mainly the South American region, including Brazil and Argentina, sales totaled 18.4 billion yen (US$181.3 million), a 13.1 percent decrease from the previous year. The operating loss totaled 0.2 billion yen (US$2.0 million), a 121.4 percent decrease from the previous year.

*The forecasts for the first-half and full-year financial results are unchanged, since the financial results of this first-quarter were as planned in the original forecast.

(Foreign exchange rates used for the first-half and full-year financial result forecasts are: US$= 100 yen, Euro=135 yen)

Forecast for Fiscal Year Ending March 31, 2015

First-Half Forecast Full-Year Forecast Changes from
Previous FY
Net Sales 2,022.0 billion yen
[US$19.9 billion]
4,140.0 billion yen
[US$40.8 billion]
+44.1 billion yen
(+1.1 percent)
Operating Income 164.0 billion yen
[US$1.6 billion]
350.0 billion yen
[US$3.5 billion]
-27.7 billion yen
(-7.3 percent)
Income before
income taxes and
minority interests
177.0 billion yen
[US$1.7 billion]
378.0 billion yen
[US$3.7 billion]
-40.6 billion yen
(-9.7 percent)
Net Income 116.0 billion yen
[US$1.1 billion]
248.0 billion yen
[US$2.4 billion]
-39.4 billion yen
(-13.7 percent)

 

About DENSO Corporation:
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electronics and information and safety. Its customers include all the world’s major carmakers. Worldwide, the company has more than 200 subsidiaries and affiliates in 38 countries and regions (including Japan) and employs nearly 140,000 people. Consolidated global sales for the fiscal year ending March 31, 2014, totaled US$39.8 billion. Last fiscal year, DENSO spent 9.0 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges. For more information, go to www.globaldenso.com.

About DENSO in North America:
DENSO employs more than 17,000 people at 33 consolidated companies and affiliates throughout North America. Of these, 28 are manufacturing facilities located in the U.S., Canada and Mexico. In the U.S. alone, DENSO employs more than 14,000 people in California, Alabama, Michigan, North Carolina, South Carolina, Tennessee, Kentucky, Georgia, Iowa, Ohio, Arkansas, and Pennsylvania. DENSO’s North American consolidated sales totaled US$7.9 billion for the fiscal year ending March 31, 2014.

Connect with us on Facebook: www.facebook.com/DENSOinNorthAmerica

(Notes)
The above forecasts are created based on the information obtained by the date of this announcement and the actual results may differ due to various causes in the future.
U.S. dollar amounts have been translated, for convenience only, at the rate of 101.36 yen = US$1, the approximate exchange rate prevailing in the Tokyo Foreign Exchange Market on June 30, 2014. Billion is used in the American sense of one thousand million.

# # #

 

DENSO Tests Advanced Driving Support Technology on a Public Road in Japan

Press Releases

KARIYA (Japan) – DENSO Corp. began testing advanced driving support technology on a public road in Aichi Prefecture, Japan this past June. DENSO is testing automated driving scenarios in a single lane and testing automatic lane changes, as well as other driving maneuvers. DENSO’s goal is to develop technologies that reduce driver workload and assist in safe driving.

Previously, DENSO tested this technology on its test course in Japan. DENSO’s goal with public road testing is to identify, analyze, and solve real-life problems that do not occur on the test course.

DENSO is conducting these field tests as part of the activities led by the Vehicle Safety Technology Project Team to reduce traffic accidents. The Project Team is organized by the Aichi Prefectural Government and involves companies and organizations operating in the prefecture.

DENSO has been developing its advanced driving assistance technology to achieve safer and more reliable driving while the driver remains in control of the vehicle. Development and commercialization of this technology will help prevent traffic accidents and contribute to increasing safety of our automotive society.

About DENSO Corporation:
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electronics and information and safety. Its customers include all the world’s major carmakers. Worldwide, the company has more than 200 subsidiaries and affiliates in 38 countries and regions (including Japan) and employs nearly 140,000 people. Consolidated global sales for the fiscal year ending March 31, 2014, totaled US$39.8 billion. Last fiscal year, DENSO spent 9.0 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges. For more information, go to www.globaldenso.com.

About DENSO in North America:
DENSO employs more than 17,000 people at 33 consolidated companies and affiliates throughout North America. Of these, 28 are manufacturing facilities located in the U.S., Canada and Mexico. In the U.S. alone, DENSO employs more than 14,000 people in California, Alabama, Michigan, North Carolina, South Carolina, Tennessee, Kentucky, Georgia, Iowa, Ohio, Arkansas, and Pennsylvania. DENSO’s North American consolidated sales totaled US$7.9 billion for the fiscal year ending March 31, 2014.

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