Introducing a Virtual Company System toward Strengthening Group Competiveness

In April 2017, we introduced a Virtual Company System (VC System) as a foundation for strengthening the competitiveness of the Group as a whole.

The VC System was introduced for the purpose of strengthening competitiveness by bolstering a sense of unity as a Group and our ability to respond to change. To attain this objective, we are consolidating various companies according to business lines to undertake product development, production and sales as if each product line is one company. On the other hand, we will speedily execute our business operations while maintaining respect for each real company to take advantage of the excellent DNA cultivated at each separate company to date, such as their diversity, respect for people, spirit of challenge and a sense of speed.

The VC System is composed of four business VCs and the Head Office. The business VCs consist of the Powertrain VC, which handles engines and transmissions; the Chassis & Vehicle Safety System VC, which is responsible for brakes, chassis and automated driving; the Body VC, which handles body components such as power sliding doors and sunroofs; and the ICT & Electronics VC, which handles navigation, electronic control units and sensors. Through the VC System, we will promote product development by consolidating the technologies of each company and enhance business efficiency by eliminating overlapping domains. Further, the Head Office will possess functional divisions such as development, production, procurement and sales as well as business administration divisions that include accounting and human resources functions. We will proceed with the sophistication of our business operations through functional divisions and enhance the efficiency of business operations through the unified platform of business administration divisions.

Yasumori Ihara

In detailed terms, the Powertrain VC will center on Aisin AW, which handles automatic transmissions and transmissions for hybrid cars; Aisin Seiki, which handles transmissions for commercial vehicles; and Aisin AI, which handles manual transmissions. Each company in this VC will consolidate its transmission development resources cultivated to date, build a unified development structure and promote the development of new powertrains.

Overview of VC System

In the Chassis & Vehicle Safety System VC, ADVICS, Aisin Seiki and Hosei Brake Industry will collaborate in the development of brakes, chassis and automated driving to raise the performance of “operating, turning and stopping.”

In the Body VC, we will adjust overlapping product domains of Aisin Seiki, Aisin Sin’ei and Shiroki Corporation and integrate each company’s field of strength. By doing so, we will strive to enhance efficiency through the pursuit of economies of scale while developing efficient production lines that leverage the excellent qualities of the three companies.

In the ICT & Electronics VC, we will strengthen competitiveness by integrating all electronic component and navigations system units, consolidating resources and raising development efficiency.

A Company That Provides Excitement and Joy to Its Customers

At first glance, there appears to be no particular problems under the business structure that maintains our DNA, whereby each separate company determines its own direction just as we’ve always done. However, I have the sense that without realizing it, the entire AISIN Group has become very large, the AISIN spirit has faded and each company is heading in slightly different directions. I view the recent introduction of the VC System as an excellent opportunity to continually promote change in the four lines of business and develop this system into an optimal shape through repeated trial-and-error efforts with the Group working in unison. When I assumed the duties of president we unveiled the slogan “Do what you want to do to make tomorrow better.” I ask you to ensure that the AISIN Group remains a group of companies that can provide excitement and joy to customers throughout the world in any era. The automobile industry is approaching a major turning point. I believe that various initiatives, beginning with our VC System as well as our development activities in next-generation growth fields, will in a sense determine the future of our company. I have a strong desire to continue taking on new challenges while having dreams so that we can move toward the future together with our customers.