Group Top Management Discussion

Advantages of Management Integration

— Leverage the Strengths of Both Companies and Learn and Grow Together —

Ihara:

I feel certain that by joining the AISIN Group, Shiroki will overcome the challenges President Matsui has mentioned earlier and will bolster its strengths further.

Matsui:

With Shiroki becoming a member of the Group, we can create the best mix of Aisin Seiki’s comprehensive capabilities encompassing outstanding technical competence, a strong commitment to quality and a sense of focus at its production sites and Shiroki’s capabilities related to “simple, streamlined and speedy”operations and low-cost technologies. By turning these capabilities into a new strength of both companies, we can surely compete with mega-suppliers and with competitors in emerging countries.

Ihara:

One characteristic of our management integration is that the integration has been carried out with Aisin Seiki and Shiroki standing on an equal footing, while retaining Shiroki’s company name and organization as well as its brands, management structure and employees. Adding Aisin Seiki’s pool of expertise on top of Shiroki’s existing business foundation, we can make the most of our win-win relationship and compete in the best possible circumstances.
The management integration provides advantages for both Aisin Seiki and Shiroki. We can learn from each other and mutually enhance our strengths in various aspects, from development to production and procurement. We intend to forge ahead with the restructuring of our operations in a manner to create synergies while paying due respect to Shiroki’s long-accumulated pride in manufacturing.

Matsui:

To that end, Shiroki will pour its energies into external and functional parts, which have been entrusted to us from the AISIN Group, and raise its capabilities as quickly as possible to the expected level.

Ihara:

I am confident Shiroki will succeed in that regard. I visited Shiroki’s seven domestic and six overseas locations and am well aware of their potential.
Shiroki’s plants in Japan can be divided into two groups: one dedicated to manufacturing seats and door frames on a large scale and the other engaging in small-lot production of widely ranging products at locations near various automakers’ facilities. I was particularly impressed with the latter group. Producing different products in small quantities surely imposes a challenge in terms of costs, but these plants were handling it very well by using their ingenuity. Their unique ideas, such as concentrated production technology used in production lines, were new to Aisin Seiki and made a strong impression.

Door frame production line at Shiroki’s Toyokawa Plant
Door frame production line at Shiroki’s Toyokawa Plant

Matsui:

I also visited all plants of Aisin Seiki producing body parts in and outside of Japan. People everywhere were working together in a congenial atmosphere, feeling very proud of being a member of the AISIN Group and proactively undertaking their assigned tasks.
Also, I was surprised to find that each plant has a clear vision and a sense of focus, and I felt we have much to learn from their attitude. Quality first is their shared goal, but the approach to achieve this differs from plant to plant. One plant is committed to creating superior metal molds, one takes pride in its tooling change skills and another plant is taking bold steps in improving its production technology. We are looking forward to learning and absorbing many things from these plants in order to grow and progress.

What We Envision as a Group

— Enhance the Competitiveness and SolutionCapabilities across the Entire Group toBecome the World’s Top Body Parts Manufacturer —

Ihara:

The AISIN Group is made up of companies having a high level of expertise, each quickly making decisions and proceeding with business. That has been our distinctive culture, and we had believed it was the best way to win out over the competition. But this way of doing business is no longer effective in the face of increasingly globalized competition. While we encourage major Group companies to independently demonstrate their individual specialized capabilities, we must make sure that all companies move in the same direction. The best way in the future will be to join forces of the Group, including Shiroki, and achieve even greater results together.

A safety dojo practice at PT. Shiroki Indonesia
A safety dojo practice at PT. Shiroki Indonesia

Matsui:

As we joined the AISIN Group,
I felt the need to change ourselves in three aspects.
First, Shiroki had been a “follower” in the industry but should now aim for a “leader” position. We need to remain more alert to market trends, customers’ real expectations and business strategies of competitors, decide what to do business-wise on our own and seek and leverage opportunities to propose solutions to customers. Secondly, we will instill the idea of “Quality First,” a basic philosophy of the AISIN Group, in Shiroki and attain improvements both in product quality and work quality. The third change involves overseas business development, which we had not been able to accomplish previously. By utilizing the AISIN Group’s global network, we aim to achieve major growth overseas and contribute to further growth of the AISIN Group.
While remaining loyal to Shiroki’s own corporate culture based on “simple, streamlined and speed,” we hope to evolve into a company that can provide the impetus for growth from within the AISIN Group.

Ihara:

The aim of the management integration is to make and tirelessly promote concerted efforts to enhance the entire Group’s competitiveness and capability to provide real solutions toward the ultimate goal of becoming the top body parts manufacturer in the world. On April 1, 2016, we made a strong step forward by initiating the restructuring of our operations, with Aisin Seiki sending 57 employees, including management staff, to Shiroki and welcoming seven employees from Shiroki to Aisin Seiki.
The year 2016 is the 73rd anniversary of Tokai Koku Kogyo, the origins of Aisin Seiki. Shiroki is also a company of long-standing, having a 70-year history. With the integration of management as a new starting point, we hope to attain solid growth together in the next 70 years, while taking action that will be noticed by AISIN Group competitors.

  • Products Zone body parts section in the Aisin com-center, the AISIN Group’s exhibition hall
  • Products Zone body parts section in the Aisin com-center, the AISIN Group’s exhibition hall
  • Products Zone body parts section in the Aisin com-center, the AISIN Group’s exhibition hall
Products Zone body parts section in the Aisin com-center, the AISIN Group’s exhibition hall