Denso Corporation is to consolidate its Australian manufacturing operations by transferring production of instrument clusters from Flexdrive Industries Limited (FDI), Gisborne, Victoria to Australian Automotive Air Pty. Ltd. (AAA), Croydon, Victoria.

Both are Denso subsidiaries. AAA will construct a new building on-site and start manufacturing instrument clusters in January 2003.

Denso will also sell the automotive cable business of FDI to Flexible Drive Agencies Pty. Ltd. (FDA) by the end of December 2002.  FDA, headquartered in Kensington, Victoria, Australia, produces automotive cables and had sales of $A8.3 million ($US4.3 million) in fiscal year 2000.

"Because the number of vehicles manufactured annually in Australia has levelled off at around 300,000, competition among auto parts suppliers is intensifying in Australia," said Shigehiko Ito, managing director of Denso Corporation. "After much study, Denso decided to transfer instrument cluster production and sales of FDI's automotive cable business to strengthen its corporate structure in Australia."

In July 2001, DENSO consolidated the production of air conditioners in Australia into AAA.