Aisin Seiki Co. buys Toyota Philippines part marker

MANILA: Aisin Seiki Co. Ltd. is a Japanese automotive part supplier that works in coordination with Toyota Motor Corporation to develop manual transmissions. All the production under this joint-venture takes place at Toyota Autoparts Philippines Inc. (TAP). Until today, Aisin had 31 percent equity participation in TAP, Toyota Motor Corp. had 61 percent, and Toyota Motor Philippines Corp. held 5 percent. However, this whole equation changes today, as Aisin brought major share in Toyota Autoparts Philippines Inc., making it 61 percent stakeholder.

A total amount of Php 1.2 billion had gone into the deal, and a part of it would be used to improve the current underutilised production capacity. Also, under the new agreement, Toyota Autoparts Philippines, the official name of the production facility would be changed to Toyota Aisin Philippines Inc. Thus bringing it under the Aisin Group umbrella that consists of more than 200 companies.

As a subsidiary of Aisin Seiki Co. Ltd. TAP seeks to achieve higher production goals. All this would be possible by leveraging Aisin knowledge and expertise into play. For those who aren’t aware, Aisin is known to acquire a diverse lineup of transmissions along with leading technological capabilities.

Under the following deal, Aisin plans to consolidate a part of its MT production to TAP. Also, the Japanese auto part manufacturer would set-up a new production line in the facility that would be dedicated to automatic gearbox components. Further, using TAP’s 26-years of expertise in the field, Aisin visions to improve competitiveness in transmissions.

Yasumori Ihara, Aisin Seiki Co. Ltd., President said that under the new leadership, Toyota Autoparts Philippines would focus on improving current production statics while adding new AT manufacturing facility in the future.

Aisin and Toyota are under plans to further strengthen their ties by optimising the engine production system. Also, both hinted towards jointly developing new auto-related products in upcoming years.