Denso to invest $1 billion in North America in next four years

Article by Anita Panait, on January 22, 2013

Denso International America Inc. will invest around $1 billion in North America in the next four years, the unit of Japanese supplier Denso Corp. disclosed at the Detroit auto show last week. According to Denso, the expansion will include around $750 million in the United States expected to create over 1,200 jobs.

Denso said it would expand production of some current components like radiators and condensers and would also add parts to its lineup in the US. These parts include stop-start starters, high output alternators, inverters for hybrid vehicles, memory-seat modules, and gasoline direct injectors. Denso will also produce its own production equipment, including dies, in North America as part of a plan to reduce imports from its Japanese parent. According to spokeswoman, Denso currently spends "several millions of dollars" annually on dies and other production equipment imported from Japan.

Denso currently employs 15,685 people at 32 plants, R&D facilities and administrative operations in North America. Denso’s $1-billion investments are part of the supplier’s five-year business plan, which entails increasing global revenues at a 7-percent annual rate to ¥4 trillion ($48.49 billion) in the fiscal year ending March 31, 2017, from $38.24 billion in the fiscal year ended March 31, 2012.

This means that Denso’s revenues need to increase faster than global vehicle production, which Denso expects will average 6 percent annual during the period. Denso is aiming to grow 7 percent annually in North America during the period, which would take its revenues in the region to $8 billion. Hikaru Sugi, senior executive director of Denso International America, wrote in Denso's 2012 annual report that the supplier seeks to develop "world-first products” originating in North America

Topics: denso, north america

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 2016
Nearly all details have been set with regards to the upcoming market introduction of the new Jaguar I-Pace. Its production version was recently previewed at the 2016 Los Angeles Auto...
by - December 8, 2016
WM Motor, a new China-based automaker, recently revealed its forthcoming lineup consisting of affordable electric vehicles. While there is a company is the U.S. that has the same name, they...
by - December 8, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries