Denso is to build a US$57m new plant in Mexico to manufacture air conditioning and heating units, with a view to expanding the site at a later stage.
The move – announced at the North American International Auto Show in Detroit – is also expected to create 400 jobs as Denso looks to meet demand from US and Canadian customers.
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“Mexico is the right decision for us because it completes our manufacturing footprint in North America,” said Denso America CEO and president Hikaru Sugi at the Detroit show.
Sugi also highlighted the importance of research and development to Denso, noting the company had spent 9.3% of US$37.7bn of consolidated sales in the sector.
“It is clear research and development outside Japan has become increasingly important for Denso’s survival as a global company,” he said. “That might seem like a lot of money, but R&D is important for Denso’s long-term growth.
The Tier One supplier is also increasing its presence in seven regions around the world as it looks to operate closer to its customers.
Speaking at the Detroit show, Denso SVP engineering Doug Patton added the manufacturer had received a US government grant to investigate thermal management of batteries and with the aim of reducing battery size by 20%.
The issue of human machine interface is one on which Patton equally said North America “tends to be leading the way,” with Denso creating a laboratory in Silicon Valley.
