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.
Go deeper with GlobalData
“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.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataSpeaking 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.
