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HOME > NEWS & ANALYSIS > JAPANS AISIN MAINTAINS LOW PROFILE WHILE GROWING GLOBAL SUPPLIER BUSINESS
JapansAisinMaintainsLowProfileWhileGrowing
GlobalSupplierBusiness
RogerSchrefflerandMackChrysler|WardsAuto
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INSIGHTS
Oct14,2008
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Japans third most-profitable parts maker and second-largest member of Toyota
Toyo s keiretsu, with nearly
150 associated companies and subsidiaries, slowly has built a global business that includes $3.7 billion
annual revenues in North America.
MAY3,2016
AprilU.S.SalesBounce
Backto17MillionPlus
AnnualLevel
Growthinthepasttwomonths
hasbeeninsectorswherealot
ofvolumegoesintocommercialfleetsandforworkrelated
purposes....More
DETROITIfevertherewasacompanythatdeliberatelyflewundertheradarscreen,its
JapansubiquitousAisinSeikiCo.Ltd.
ThecountrysthirdmostprofitablepartsmakersecondlargestinToyota
Toyo MotorCorp.s
keiretsugroup,withnearly150associatedcompaniesandsubsidiariesslowlybutsurely
hasbuilta$24.6billionglobalbusinessthatincludes$3.7billionannualrevenuesin
NorthAmerica,withoutfanfareorattractingmuchattention.
Wemakeautomatictransmissionsbody,engineandbrakecomponentsdoorframes
sunroofscastingsandelectronicseverythingAisinmakesinJapanexceptmanual
transmissions,saysDonWhitsitt,presidentofPlymouth,MIbasedAisinWorldCorp.of
AmericaandaformerGeneralMotorsCorp.executive.
Infact,Whitsittsholdingcompanyforthe30AisingroupsubsidiariesinNorthAmerica
isamicrocosmofAisinSeikisglobalbusiness,withtwomainfunctions.
OneiscontrolofallNorthAmericanbusinessoperations,includingfinance,sales,
logistics,humanresourcesandapplicationengineering.Theotherisoversightof
manufacturinginthecompanys24NorthAmericanplantswithnearly10,000
employees,15%oftheAisinglobaltotal.
WefunctionsomewhatautonomouslyfromJapan,saysWhitsitt.WecontrolourNorth
AmericanoperationsbutreporttoJapan.
ARTICLE
MAY3,2016
April2016U.S.LVSalesThread:StrongMonthlySales
PushingSAARPast17MillionAgain
(UPDATE3:35PMET)AprilU.S.lightvehiclesaleswillfinishat
justbelow1.5millionunits....More
HyundaiSonataPluginStandsOut
Lastyear,Hyundaiwasthefirstautomakerintheworldtosell
avehiclepoweredbyahydrogenfuelcell.HyundaiVice
ChairmanWoongchulYangmakesitcleartheautomaker
planstobeatrailblazerinhybridsaswellasfuelcells....
MercedesGLCNailsIt
TheinteriorofthemoderatelypricedCUVsimplyoozes
quality.Itsfinelycraftedseats,woodandmetaltrimand
upscaleheadlinermakethecabinaninvitingplacetobe,and
itsintuitivehumanmachineinterfaceperfectlybridgesthe
Owners,InsurersDealWithDefunctDefender
Dilemma
AmassiveincreaseinDefendertheftshasfollowedJLRs
Januaryterminationoftheallwheeldriveworkhorses67
yearproductionrun.RuralinsurerNFUMutualsaysmore
AisinAIsmostadvancedmanualtransmissionusedin
Porsche 911.
TWEETS
Asexamples,hecitesAisinAWCo.Ltd.,theautomatictransmissionspecialist,andAisin
AICo.Ltd.,whichmakesmanualtransmissions.AisinSeikidoesntdecidehowthey
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shouldruntheirbusinesses,hesays.
Tweetsby@WardsAuto
Thedecentralizationispracticalandhaspaidoff.TheAisinSeikiGroupmakes10,000
differentproductsandranksfirstintheautomotiveworldinautomatictransmissions,
secondinmanualtransmissionsandthirdorfourthinbrakingsystems.
3h
Bumpertobumper,wearetheclosestthingtoacarmakerwithoutbeingacarmaker,
saysWhitsitt.Wealmostalwayshavetwocomponentsourcesforeverything:onein
house,theotheroutside.Byproducinginhouse,eveninsmallvolumes,wearebetterable
tounderstandtheproblemsofoursuppliers.
ThecompanyslatesttechnologiesarentalwayssoldtoToyota
Toyo .AisinAIsmostadvanced
manualtransmissionisusedinthePorsche911.AlthoughAisinAWs8speedautomatic
transmissiondebutedintheLexus460,itsfirstventureinto6speedautomatic
transmissionswaswithEuropeanautomakers.
TransmissionsareanAisinSeikispecialty.AWNorthCarolinaInc.,asubsidiaryofAisin
AW,makes5speedand6speedgearboxesforthefullsizeTundrapickupandSequoia
SUVproducedatToyotasIndianaandTexasplants.Italsosupplies5speedunitsforthe
Toyo
smallTacomapickupandisToyotasonlyNorthAmericansupplierofautomatic
Toyo
transmissions,deliveringmorethan400,000lastyear.
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Additionally,theNorthCarolinasubsidiarysuppliescastingstoToyotaMotorMfg.West
Toyo
VirginiaInc.,whileAisinAWdeliversfrontwheeldrivetransmissions,madeinJapan,to
GM,FordMotorCo.,ChryslerLLCandToyota.
Toyo
WeexpectAisinAWtosubstantiallygrowthatbusiness,saysWhitsett,whilenotinga
decisionhasyettobemadeonwhetherthe8yearoldoperationwillmakeautomatic
transmissionsforFWDcars.
6h
ENEWSLETTERS
AisinsubsidiaryAWNorthCarolinamakes5and6speed
gearboxesforfullsizeTundrapickupsandSequoiaSUVs.
GoingintotheFWDfieldisabigstrategicdecision,hesays.Atpresent,wehaveno
planstoproducethemintheU.S.,butIwouldneversayneveraboutfutureplans.Ithas
agreatdealtodowiththeplansofourcarmakercustomers.
WhitsittbelievesAisinAWsgrowinglineupofcontinuouslyvariabletransmissionsmight
makesenseincertainsmallapplicationsinNorthAmericabutwillneverreachthe
popularitylevelsinJapan,wheresomuchofthedrivingisslowspeed,stopandgo.He
seesthegreatestgrowthpotentialinsteptransmissions,particularly6speedunits.
Fuelsavingdrivestransmissiondevelopment,Whitsittsays.Becauseofnewfriction
materials,lubricantsandcomputers,wecannowmakemuchleaner,simplergeartrains
thatpreviouslywerenotacceptabletoelectroniccontrollersintermsofnoise,vibration
andharshness.
Soaslongaswecanmatchthesweetspotinthecurvewithgearratiosandprovidea
smoothsystemseamlesstothedriver,the6speedsegmentwillcontinuetogrow.
However,automakersmusthavegoodreasonsforswitchingtoanewsystem,andsuch
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factorsasdriveracceptability,warrantyimplicationsandincreasedcostsmustbe
carefullyconsideredbyasupplier,hewarns.
About75%ofAisingroupproductssoldlastyearinNorthAmericawereproducedthere,
andthispercentagewillincreaseasgroupcompaniescontinuetoexpandtheU.S.
manufactureofallmajorproducts.
Forexample,a250,000sq.ft.(76,200sq.m)expansionoftheClinton,TN,diecasting
plantwascompletedin2007andnewdoorframeplantsinStockton,CA,andWoodstock,
ON,Canada,werededicatedthisyear.
Nowintheplanningstageareincreasesintheoutputofelectronics,mainlytosupport
internalrequirements,andtheproductionofsunroofsaspanoramictypesbecomemore
popular.
AdvicsMfg.OhioInc.,asubsidiaryofAdvicsCo.Ltd.,thegroupsbrakingsystem
specialist,beganproductionofelectronicstabilitycontrolsystemsthisyearatitsLebanon,
OH,plantandexpectstoboostNorthAmericansalesto$1billionin2010,upfrom$300
millionin2006.
Astheindustrysleader,AisinSeikihasareputationasamajorinnovator.AtAprils
SocietyofAutomotiveEngineersWorldCongressinDetroitandMaysJapanSocietyof
AutomotiveEngineersExhibitionandCongress,thecompanydisplayedanumberofnew
systems.
Amongthesewerea3stagevariabledischargeoilpumpa4wheeldrivehybrid
transmissioninstalledintheLexusLS600hamediumtorquecapacity,FWD6speed
automatictransmissionahightorquecapacity,RWD6speedunitandtheRWD8
speedtransmissionintheLS460.
OtherAisinSeikitechnologiesincludetheAdvicselectronicstabilitycontrolmodulatora
precrashintelligentheadrestraintanadvancedAisinAWDVDnavigationsystemand
adrivingmonitoringsystemfirstinstalledonthenewToyotaCrown,whichwarnsdrivers
Toyo
whentheylookawayfromtheroadforanextendedperiod.
MorethantwothirdsofAisinsNorthAmericaninvestmentshavebeenmadesincethe
startofthedecadeandmoreisinevitable,despitethecurrentautomotiveindustry
environmentwithsuppliersscouredbythesoaringcostofsteel,aluminumandotherraw
materials.
NotcountingexpansionsofolderfacilitiesinCanada,theU.S.andMexico,thesupplier
hasspentnearly$300millioninnewproductioncapacitysince2000.
Whitsittisbothbullishaboutthefutureandarealistaboutthepresent.Askedhowcost
increasesareimpactingAisinWorldsbottomline,hemakesachokingsoundto
emphasizethedifficultyofpassingthemontocustomers.InadditiontoToyota,which
Toyo
owns22.2%oftheparentcompany,theseincludeGM,Ford,ChryslerandHondaof
AmericaMfg.Inc.
Yet,despitecostpressuresandthestrongyen,AisinWorldsawoperatingmargins
increase2.7%infiscal2007,from2.1%thepreviousyear.Thiscomparesto6.7%and
5.5%,marginsrespectively,theparentcompanyenjoyedglobally.
Whitsittpredictsmorethan20%growthforAisininNorthAmericansalesto$4.5billion
annuallyinthenextfiveyears,whilecautioningthatexpandingcapacitytomeetgrowth
isabigcapexdecision,involvingdiscussionswithcustomers.
Wedontwanttobeabanker,hesays.Wewanttotaketheexchangerateriskoutof
ouroperationsbydoingbusinessinthecurrencywesellinandinvestinginthecurrency
wesellin.
AisinGroupNorthAmericanManufacturingSubsidiaries
Location
Startup
Initial
Product
Investment
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AisinMfg.California
LLC
Stockton,CA
2008
$10million
Doorframesandother
bodycomponents
AisinChemicalIndiana
LLC
Crothersville,
IN
2007
Wetfrictionmaterials
$12.5million forautomatic
transmissions
AisinElectronics
IllinoisLLC
Marion,IL
2005
$14million
Electroniccontrollers
forpowerslidingdoors,
sunroofs,smartkeys
AisinAutomotive
CastingTennesseeInc.
Clinton,TN
2005
$31million
Enginefrontmodules,
pistons,variablevalve
timingunits,oilpumps,
waterpumps
AisinMfg.
AguascalientesS.A.de
C.V.
Aguascalientes,
2005
Mexico
$2.6million
Doorframes
AisinLightMetalsLLC
Marion,IL
2004
$5.1million
Aluminumextrusions
forbumpers,brake
systemsandABSbody
cases
AdvicsMfg.OhioInc.
Lebanon,OH
2003
$37million
ABSbrakemodulators,
discbrakecalipers
AisinBrake&Chassis
Inc.
TerreHaute,
IN
2003
$19million
Hydraulicbrake
boosters
AisinCanadaInc.
Woodstock,
ON
2003
NAsecond
investment:
$24million
Seats,beltmolding,
windshieldtrim(first
plan),doorframes
(secondplant)
AisinMfgIllinoisLLC
Marion,IL
2002
$5million
Sunroofs,slidedoor
modules
ATTCMfg.Inc.
TellCity,IN
2001
$25million
Discrotors,steering
knuckles,differential
casesubassemblies
2000
6speedautomatic
transmissions,oil
$100million
pumps,torque
converters
AWNorthCarolinaInc. Durham,NC
AisinAutomotive
CastingLLC
London,KY
1998
NA
Oilpumps,pistons,
chaincovers,head
covers,carrierhousings,
transmissionparts,
waterpumps,master
cylindercovers,
transmissionextension
housings,valvebodies,
transaxlecases
AisinElectronicsInc.
Stockton,CA
1997
NA
Electroniccontrolunit,
sensors
AisinDrivelineInc.
Crothersville,
IN
NA(inc.
1996)
NA
Tandemmaster
cylinderswithbrake
vacuumboosters,power
tile,telescopicsteering
columns
AisinMexicanaS.A.de
C.V.
Cienegade
Flores,Mexico
NA(inc.
1996)
NA
Doorlatches,door
checks,upperlatches
INTATPrecisionInc.
Rushville,IN
1989
NA
Castironandmachined
components,including
frontanchors,steering
knuckles,exhaust
flanges,calipers,
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differentialcases
AisinU.S.A.Mfg.Inc.
Seymour,IN
1987
NA
Doorframes,latching
systems,seatingtrim
molding
LibertyMexicanaS.A.
deC.V.
SantaClara,
Estadode
Mexico,
Mexico
NA(inc.
1973)
NA
Waterpumps,hood
latches,rebuiltclutches
anddoorlatches
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