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March 18, 2019

Hitachi Automotive strengthens its global organisational structure

Hitachi Automotive Systems has announced strengthening of its global organisational structure effective from 1 April 2019, to 'achieve its ambitions of global leadership and being a true value creator for stakeholders'.

By Sam Duke

Hitachi Automotive Systems has announced strengthening of its global organisational structure effective from 1 April 2019, to ‘achieve its ambitions of global leadership and being a true value creator for stakeholders’.

Previously, Business Divisions were responsible for business accountability in Japan, while Regional Headquarters were responsible for business accountability outside Japan. However, from April, business accountability will be owned by global product-based Business Divisions and Business Units. In addition, Hitachi Automotive Systems will optimise operations in Regions and strengthen its Global Functions. By doing so, we will increase the value provided to customers and accelerate the creation of innovative products and services.

In recent years, the environment surrounding the automotive industry has undergone significant changes, with intensified competition to develop new technologies such as electrification and AD/ADAS. In addition, new competitors are entering the automotive market, and the worldwide demand for car sharing and mobility services has also increased. In this rapidly changing business environment, automotive suppliers must generate and speedily deliver new solutions, new technologies, and higher value-added products. In response to these market requirements, Hitachi Automotive Systems will promote business optimisation through portfolio reorganisation and a new corporate strategy to improve global competitiveness.

Based on the new corporate strategy, Hitachi Automotive Systems will strengthen its global organisational structure in three domains to achieve agile and efficient business operations.

Domain 1: Business Divisions and Business Units – Consolidate Business Accountability into Business Divisions Previously, Business Divisions were responsible for business accountability in Japan, while Regional Headquarters were responsible for business accountability outside Japan. However, from April, business accountability will be owned by globally focused Business Divisions and Business Units, divided by product area. In addition, a Software Division will be newly established, current divisions will be reorganised into the Powertrain and Safety Systems Division and Chassis Division, and the Aftermarket Division will be strengthened. For Divisions that contain Business Units, execution of cross-Business Unit strategies will drive speedy and efficient business operations. Furthermore, each Business Units will own Sales functions that will accelerate creation of innovative solutions meeting customers’ future needs.

Domain 2: Regions – optimise Regional Operations A Japan Region will be newly established in addition to a Europe Region, China Region, Asia Region, and Americas Region. Regions will concentrate on execution of operational excellence across plants and Business Units, optimising operations in each Region.

Domain 3: Strengthened Global Functions Hitachi Automotive Systems will strengthen global governance to provide service and support for efficient business operations through scale, driving consistency in standards and policies.

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