Toyota Boshoku and Aisin has agreed a production transfer contract and the transfer of commercial rights for automotive seat frame mechanism parts

Jun. 29, 2022

News Release

 Toyota Boshoku, Aisin and Shiroki have signed a production transfer contract that agreed to transfer Shiroki's Nagoya Plant, which is the main domestic production base for Aisin group’s automotive seat frame mechanism parts, to Toyota Boshoku and transfer its production.

 Regarding this production transfer, Shiroki spun off its Nagoya Plant as a new company and will be a subsidiary of Toyota Boshoku. This production transfer will be carried out on the condition that necessary procedures and measures are completed based on the competition laws of each country.

 In addition, prior notification and examination based on the Competition Law have been completed that Toyota Boshoku will acquire Shiroki’s commercial rights*1 for the automotive seat frame mechanism parts for Suzuki Motor Corporation, Daihatsu Motor Co., Ltd. and Mazda Motor Corporation.

 Moreover, for the purpose of further strengthening the global competitiveness of Toyota Boshoku’s automotive seat business, three companies has begun to consider that Toyota Boshoku will acquire Shiroki’s commercial rights*1 for the automotive seat frame mechanism parts for Isuzu Motors Limited, SUBARU Corporation, Nissan Motor Co., Ltd., Hino Motor Ltd., Honda Motor Co., Ltd., Mitsubishi Motors Corporation

 Since 2015, Toyota Boshoku has been gradually taking over the development and production functions of seat frame mechanism parts for Toyota Motor Corporation from Aisin in order to become a “HOME”*2 as an interior system supplier. In accordance with this agreement, Toyota Boshoku will gradually transfer sales, development, and production functions for the customers other than Toyota to further strengthen competitiveness, and become a solution company of vehicle interior space who is capable of creating new corporate value as an “Interior Space Creator.”

 Meanwhile, Aisin will focus on a “full model change” of its business structure in response to the drastic changes in the automobile industry. In the car body business, Aisin will concentrate resources on the development of system products such as power sliding doors. Shiroki will exert efforts to expand markets with their capability which can provide new products quickly with their manufacturing power.

 We will transfer the commercial rights upon completion of the procedures required by the competition laws of each relevant country and after the consent of our customers is obtained.

*1. Commercial rights: a position in a sales contract.
*2. HOME: Toyota Boshoku business or region that can add value on its own with the practice of Genchi Genbutsu (meaning “Go and see for yourself”) and is highly competitive in comparison with its competitors.

 < Outlines of new subsidiary of Toyota Boshoku>
Location: 635-26, Komugio, Nishihirose-cho, Toyota, Aichi, 470-0309 JAPAN
Representative: TBD
Capital: 400 million yen
Stock acquisition date: April 1, 2023 (planned)
Area: Land 61,434m2, Building 34,359m2
Products: Seat recliners, Seat adjusters, etc.
Employees: Approx. 900 (planned April 1, 2023)