Oct. 03, 2002
Toyoda Machine Works, Ltd.
DENSO Corporation
Toyota Motor Corporation
Koyo Seiko, Toyoda Machine Works, DENSO and
TMC Tie Up on Electric/Electric Hydraulic Power
Steering Systems
―New Joint Venture to Aim at Becoming World Leader―
Tokyo―KOYO SEIKO CO., LTD (Koyo Seiko), TOYODA MACHINE WORKS, LTD. (Toyoda Machine Works), DENSO CORPORATION (DENSO) and TOYOTA MOTOR CORPORATION (TMC) announced today that they plan to establish on Nov. 1, 2002, a joint venture that will specialize in the development and sales of electric power steering and electric-hydraulic power steering systems (collectively known as "EPS").
FAVESS Co., Ltd. (FAVESS), which will be located in Aichi Prefecture and headed by a president to be appointed by Koyo Seiko, will concentrate the resources and technology of its four founding companies with an aim to become the world's leading supplier of EPS and related products.
EPS, which contributes to greater automobile fuel efficiency and allows a higher level of control than in conventional hydraulic power steering systems, is seen as playing a key role in making cars more environmentally considerate and in meeting the growing demand among automakers for advanced automotive control technology. In view of its benefits, automakers, first in Europe and then in Japan, the United States and elsewhere, have been increasingly turning to EPS. Although initially limited to small vehicles, EPS is now being applied to midsize and larger vehicles, with demand expected to increase significantly.
Koyo Seiko, Toyoda Machine Works, DENSO and TMC intend to respond to market needs and gain the confidence of all automakers through FAVESS by quickly and efficiently developing next-generation EPS systems with advanced, innovative technology. FAVESS will mainly focus on the following six activities:
- Efficiently expanding, etc. the EPS product lineup to meet the demand created by the rapidly increasing number of vehicles adopting EPS and the trend toward use in larger vehicles
- Strengthening development of electronic systems control technology, a key technology of EPS
- Developing EPS with a balance of quality, performance and cost that will be accepted worldwide
- Developing products speedily and precisely that meet the needs of automakers expanding operations around the globe
- Carrying out advanced development of next-generation intelligent steering systems and vehicle integrated control systems
- Establishing a sales structure that can accurately and speedily respond to customer needs
| Company name |
FAVESS Co., Ltd. |
| Head office location |
1-18, Fukayama, Shinpukuji-cho, Okazaki, Aichi Prefecture (R&D center of Toyoda Machine Works) |
| Date of establishment |
November 1, 2002 |
| Sales start | February 3, 2003 (planned) |
| Capitalization | 480 million yen |
| Equity participation |
Koyo Seiko 45%, Toyoda Machine Works 35%, DENSO 10%, Toyota 10% |
| Products | Electric power steering, electric-hydraulic power steering, etc. |
| Employees | Approximately 300 (at the start of sales activities) |
| Sales target | ¥30 billion in 2003, ¥50 billion in 2005 |
| Outline of FAVESS | (as of the end of March 2002) |
| Koyo Seiko | Toyoda Machine Works | DENSO | TMC | |
| Established | Jan. 1935 | May 1941 | Dec. 1949 | Aug. 1937 |
| Head office | Osaka | Kariya* | Kariya* | Toyoda* |
| Capital | ¥25.8 billion | ¥24.8 billion | ¥173 billion | ¥397 billion |
| Sales (consolidated) | ¥404.2 billion | ¥188.5 billion | ¥2,401 billion | ¥15,106 billion |
| Sales (unconsolidated) | ¥286.1 billion | ¥145.6 billion | ¥1,536.5 billion | ¥8,284.9 billion |
| Employees (unconsolidated) | 6,557 | 4,147 | 34,453 | 66,820 |
*In Aichi Prefecture
Contact:
Steering System Operations Headquarters Strategic Planning Dept., Koyo Seiko:
(0744) 22-7803
Automotive Parts Sales & Marketing Dept. No. 2, Toyoda Machine Works:
(0564) 27-3478
Corporate Communications Dept., DENSO: (0566) 25-5592 / 5594
Public Affairs Division, TMC: (03) 3817-9161
