1. Breaking into emerging markets and pursuing cost reforms

In the long term, I believe that emerging economies will be fully motorized, and the automobile market will continue to expand. Our success in building a business foundation in these markets will determine AISIN’s growth in the future. We expect demand for small, entry-level cars will heighten in emerging markets, and we must steadily increase our business in these markets and develop products that can generate profits.

AISIN has designated China, Brazil and India as its priority regions, and will work to identify users’ needs for automobiles and the operating environments in these regions, and also ascertain the performance and quality required. We will also upgrade our local abilities to procure materials and parts as well as to engage in manufacturing and development activities. To achieve groundbreaking low costs, the design divisions and manufacturing technology divisions will work together to pursue SE* activities. They will select priority products, review construction methods and materials, reduce the types of parts and change product specifications and structural design.

* Simultaneous Engineering (SE): This is a development method that allows every step from design to manufacturing to be carried out simultaneously. The aim is to shorten the development process through to mass production as much as possible and take into account the entire product life cycle, from start to finish.

2. Development of new products forming the core of eco-friendly cars

We will focus on the development of new products that will form the core of hybrid vehicles and electric cars, with an emphasis on the drivetrain field, energy regeneration and heat management. In addition to hybrid transmissions, a field in which we have already achieved results, we will also devote resources to the development of next-generation motors. At the same time, we will focus on innovation in enhancing existing products to improve the fuel efficiency of conventional gasoline-fuelled cars as well as engine efficiency, raise drive power transmission efficiency and reduce weight.

Moreover, we will reinforce collaboration within the AISIN Group in new product development. In FY2010, we reorganized the development and production systems in the brake related business for this very purpose.

3. Initiatives in energy and new fields

AISIN's particular strength lies in developing a wide range of businesses in areas other than automotive parts. We aim to create pillars for new businesses in energy and new fields. The SOFC* residential fuel cell cogeneration system, which conserves energy and is effective in reducing CO₂, is one such example. We are currently carrying out proving tests with the intention of developing practical applications.

The world's needs for an energy-saving, healthy and comfortable lifestyle are rising, which presents AISIN with unprecedented opportunities as a company that has built up technological expertise in the fields of automobiles, homes and energy. We will pursue perspectives and technologies unique to AISIN with the aim of creating new markets.

* SOFC: Solid Oxide Fuel Cell

AISIN will continue to actively develop and expand sales of new technologies to achieve global growth. Moreover, we aspire to be a corporate group capable of coexisting with customers, the community and nature by accurately responding to society's demands and expectations. We ask our shareholders and other stakeholders for their continuing support going forward.