Aisin Seiki Co., Ltd. (hereinafter referred to as “Aisin”) and ADVICS Co. Ltd. (hereinafter referred to as “ADVICS”) hereby announce that both companies have agreed to conclude a basic agreement to transfer part of Aisin’s automobile brake production business to ADVICS.

In July 2001, Aisin established, together with Denso Corporation, Sumitomo Electric Industries, Ltd. and Toyota Motor Corporation, ADVICS to be engaged in the development and sales of automobile brake systems.  Since then, ADVICS has been in the business of developing and selling brake systems, whereas Aisin has produced and supplied components for them.

With the penetration of clean energy vehicles including hybrid vehicles and ITS technology in recent years, technological innovation responding to such trend is being demanded in the auto parts sector.  And, globally increasing demand for small cars and low-cost cars is further intensifying the low-cost competition.

Under these circumstances, both companies recognized that the foundations of the brake business should be strengthened by enhancing product and cost competitiveness, and promoting the streamlining of business operation based on further collaboration in development and production.
Therefore, both companies have decided to conclude a basic agreement to transfer part of Aisin’s automobile brake production business to ADVICS.  At this point, the two companies will discuss details regarding property transfer, transfer price and operations in connection with the said business transfer, by the end of March 2010.

ADVICS will seek further business expansion and improvement of company quality in the global market of the automobile brake business.