Aisin Seiki, subsidiary, Aisin AI and Toyota have reached a further agreement regarding the consolidation of the development and production of manual transmissions under Aisin AI, which was agreed in principle in November 2014.
This agreement builds on the previous agreement, the aim of which was to strengthen the competitiveness of Aisin AI and Toyota by bringing the development and Japanese production of manual transmissions under one roof and allowing more efficient allocation of resources. Development of manual transmissions for volume produced vehicles will be consolidated at Aisin AI by the end of 2016. Toyota’s manual transmissions production functions in Japan will be transferred to Aisin AI’s plant in Japan around February 2016.
Outside Japan, Aisin Seiki plans to acquire a stake in Toyota Autoparts Philippines (in January 2016) and Toyota Kirloskar Auto Parts (in July 2016). The ratio of its equity participation, which is expected to be between 25% and 34%, will be finalised after further discussions.
Aisin AI and Aisin Seiki aim to achieve further growth to become a specialist transmissions manufacturer. Toyota instead will focus more resources on the development of next generation transmissions and related aspects of vehicle performance.