DENSO Announces New Global Aftermarket Division and Intends to Merge Nine Sales Companies in Japan

DENSO Announces New Global Aftermarket Division and Intends to Merge Nine Sales Companies in Japan

―Strengthening Automotive Aftermarket and Non-automotive Business―

KARIYA (Japan) ― In an effort to strengthen automotive aftermarket and non-automotive businesses, DENSO Corporation has announced the formation of a new global aftermarket division based at the company’s headquarters in Kariya, Japan. In addition, the company will consolidate its eight Japanese sales companies and its group company, DENSO Ace Corporation, which sells residential central climate control systems and other products, into a single company called DENSO Sales Japan Corporation (tentative name) on April 1, 2012.

Currently the company has 30 aftermarket companies worldwide with fiscal year 2010 sales of approximately €3 billion. These companies’ efforts will now be coordinated under one division, creating synergies of resources and synchronization of strategy.

“Creation of this new aftermarket business unit is a big step forward for DENSO’s aftermarket operations, our objective is to expand and promote our aftermarket presence worldwide,” said Toshiaki Fujii, head of the new DENSO Aftermarket Business Unit. “This establishes a structure where the aftermarket is operated as an independent business entity apart from our Original Equipment (OE) business.”

The eight sales and services organizations to be merged include: DENSO Hokkaido Corporation; DENSO Tohoku Corporation; DENSO Tokyo Corporation; DENSO Chubu Corporation; DENSO Kansai Corporation; DENSO Chugoku Corporation; DENSO Shikoku Corporation; and, DENSO Kyushu Corporation.

“This consolidation will enable us to improve our products and services to customers and expand our automotive aftermarket and non-automotive businesses in Japan,” said Koji Kobayashi, executive vice president of DENSO Corporation.

 In the Japanese non-automotive business, DENSO will enhance its sales in the potential growth area of house equipment products, which includes CO2 heat pump water heaters and central climate control system. Additionally, the new company will also focus on manufacturing facility, office equipment products, including industrial robots and air-conditioning systems, and actively target the micro grid business.

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, electric, 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 35 countries and regions (including Japan) and employs approximately 120,000 people. Consolidated global sales for the fiscal year ending March 31, 2011, totaled €27.7 billion. Last fiscal year, DENSO spent 9.3 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.