JTEKT Corporation, a manufacturer and seller of steering systems, driveline components, bearings, machine tools, electronic control devices, home accessory equipment, has agreed to acquire 100% stake in Toyo Seimitsu Industry Co., Ltd., engaged in manufacturing of differential gears, from Toyota Motor Corporation. All companies involved in the transaction are based in Japan.

JTEKT was formed by the merger of Japan-based Koyo Seiko and Toyoda Machine Works on 1 January 2006.

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In the Toyota Group’s current driveline operations, Toyota, JTEKT, and Yutaka Seimitsu share responsibilities for development and production of each driveline component, with Toyota and Yutaka Seimitsu responsible for differential gears and JTEKT responsible for torque control devices (electronically controlled 4WD couplings).

Toyota is consolidating its supply chain in driveline components and divesting some operations.

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