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Contact: Bridgette LaRose
DENSO International America, Inc.
KARIYA, Japan (October 19, 2018) – DENSO corporation (DENSO), the world’s second largest mobility supplier, has made recent changes that represent one of the largest shifts in business strategy in its 70-year history – expanding into software-based solutions in addition to its hardware expertise – that push the company beyond a vehicle-centric focus in order to help create an new mobility paradigm for society. The global auto industry is undergoing a once-in-a-century shift that will fundamentally reshape transportation. Given the changing cast of competitors that make up the evolving auto industry, DENSO has transformed its conventional business model to achieve success for customers, consumers, partners, employees, and all other stakeholders.
DENSO’s long-term policy, which was launched last year, guides the company toward its 2030 goal: to create and inspire new value for the future of mobility. DENSO today launched its 2018 Annual Report, which is the first account of company activities following the release of its long-term policy. The policy and report reiterates DENSO’s strategy to achieve vision, including:
“Our long-term vision is a future with enhanced mobility, safety and peace of mind, with less impact on the environment. We still have a deep commitment to protecting lives, but we are ready to realize our second founding,” said CEO Koji Arima. “This means we must change our own organization to prevail in the rapidly changing business landscape and provide value to our customers that goes beyond a vehicle-centric focus to enrich society’s broader needs.”
Increasing performance in electrification and automated driving
DENSO is committed to advancing automotive innovation and meeting the demands of the future of transportation. Thus, DENSO will continue to increase its performance in the fields of electrification and automated driving to achieve sustainable growth. The company aims to achieve revenues of 7 trillion yen (US$62B) and an operating profit ratio of 10 percent by 2026.
In 2017, DENSO invested US$1 billion in its Maryville, Tennessee location. The investment significantly advanced the United States’ role in crafting the future of electrification and safety technology and made Maryville a primary manufacturing center in North America for electrification and safety systems. The investment also expanded multiple production lines to produce advanced safety, connectivity, and electrification products for hybrid and electric vehicles. These new products will radically improve fuel efficiency and preserve electric power by recovering and recycling energy, and by connecting all systems and products inside the vehicles.
Realigning organizational structure
DENSO has undergone restructuring with the aim of accelerating business execution during major industry change. Specific examples include:
Focusing on key initiatives
DENSO plans to focus on the areas of electrification, automated driving and connected cars to advance the future of mobility. It will also focus on non-automotive business, particularly on factory automation and agro-industrialization. Recent investments and partnerships in these key areas include:
About DENSO in North America
DENSO is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electronics and information and safety. With its North American headquarters located in Southfield, Michigan, DENSO employs more than 23,000 people at 28 consolidated subsidiaries and 4 affiliates across the North American region. Of these, 25 are manufacturing facilities located in the United States, Canada and Mexico. In the United States alone, DENSO employs more than 17,000 people in Alabama, Arkansas, California, Iowa, Georgia, Kentucky, Michigan, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee and Texas. DENSO’s North American consolidated sales totaled US$10.9 billion for the fiscal year ending March 31, 2018. For more information, go to www.denso.com/us-ca/en. Connect with DENSO on Facebook at www.facebook.com/DENSOinNorthAmerica.
DENSO is a $48.1 billion global mobility supplier that develops advanced technology and components for nearly every vehicle make and model on the road today, including Toyota, Honda, FCA, GM, Ford, Volvo, and Mercedes-Benz. With manufacturing at its core, DENSO invests in its 220 facilities in 35 countries to produce thermal, powertrain, mobility, electrification, & electronic systems, to create jobs that directly change how the world moves. The company’s 170,000+ employees are paving the way to a mobility future that improves lives, eliminates traffic accidents, and preserves the environment. Globally headquartered in Kariya, Japan, DENSO spent 8.8 percent of its global consolidated sales on research and development in the fiscal year ending March 31, 2018. For more information about global DENSO, visit https://www.denso.com/global
In North America, DENSO employs 24,000+ engineers, researchers and skilled workers across 31 sites in the U.S, Canada and Mexico. In the United States alone, DENSO employs 17,000+ employees across 11 states and 25 sites. Headquartered in Southfield, Michigan, in fiscal year ending March 31, 2018, DENSO in North America generated $10.9 billion in consolidated sales. Join us, and craft not only how the world moves, but also your career. For more information, go to https://www.denso.com/us-ca/en/
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