Aisin Starts Supplying Engine Components to GM (May 23, 2003)

Aisin Seiki Co., Ltd. (President: Kanshiro Toyoda; Headquarters: Kariya-city, Aichi, Japan) received orders for the first time from General Motors (GM) for engine related parts, Variable Valve Timing (VVT) and Oil Control Valve (OCV), which hydraulically controls VVT, and began supplying these products at the end of March.

VVT is a control device that optimizes the timing for opening or closing the valve for air intake or exhaust according to engine rpm (running speed). It also improves fuel efficiency and reduces exhaust emissions. For these reasons, an increasing number of cars have been equipped with VVT to meet environmental requirements. GM is the fifth foreign manufacturer to which Aisin supplies VVT, following Renault, Volvo, BMW and Ford Australia. It is the first time for Aisin to deal with GM in any engine component, although these two companies have already been doing business in other products.

The VVT and OCV have been developed for GM's new V6 engines, and will be installed in the Cadillac CTS (displacement: 3.6 liter), due for release in August. Both products are mounted on the air intake and exhaust sides of the V6 engines. Aisin plans to supply about 200,000 units of VVT and OCV each annually (four units each for one engine). In addition, Aisin expects that expanding the use of these products to middle-sized cars and minivans will increase its VVT and OCV supply to GM in 2006 to about 700,000 units respectively.

In response to these orders, Aisin's automotive parts manufacturer in North America, Aisin Automotive Casting, LLC (President; Kenji Tsujimura), will start manufacturing the products to sell via Aisin World Corp. of America (President; Junichi Nishimura). It is the first time for Aisin to produce VVT overseas since 1998, when Aisin starts production of this product.

Aisin's VVT has adopted a cost-reduction with the same structure on the air intake and exhaust sides, which has resulted in many inquiries about the VVT and gives us reason to expect a substantial increase in demand. Thus, Aisin is enhancing sales of the VVT to European and the U.S. automakers, aiming at an increase of VVT production from current 1.2 million to 5.0 million units per year by 2007.

1.Product Name:

Variable Valve Timing

2.Characteristics:

Vane system VVT does not use the traditional piston and gear (helical gear) design. Instead, oil pressure is merely applied against a thin vane to cause rotation. The vane design enables integration of the sprockets and housings, and in turn substantially simplifies and downsizes the structure and lowers the cost. <Reference>Effects of installing VVT 4.8 % higher fuel efficiency, 40 % less NOX emission, and 10% higher power. Above values are the results of the comparison with cars without VVT, the measurement conducted by Aisin.

(From left) OCV, VVT