In an effort to cooperate globally for the development of market driven, cost efficient steering components and systems, Visteon Corporation (NYSE: VC – news) and Kayaba Industry Company, Ltd., have signed a strategic partnership agreement with an intent to design and develop the next generation of steering systems for the automotive industry.
Both Visteon and Kayaba have complementary expertise in the areas of design, manufacturing and sales of hydraulic and electric automotive steering components and systems such as hydraulic power assisted steering, electrical power assisted steering, pumps, gears and four-wheel steering systems. Together the two companies anticipate strengthening their relationship with OEM customers across the globe, combining Visteon’s global reach with Kayaba’s strength within the Asia-Pacific region.
“Visteon is continually looking to find ways to expand aggressively into the Asia-Pacific market with products and systems that are core to our business,” said Ed Buker, Visteon vice president and general manager, Chassis Systems. “This strategic alliance with Kayaba will capitalize on our systems expertise, while gaining Kayaba’s support across the key Asia-Pacific customer base.”
This alliance allows for the companies to jointly pursue the cooperative supply of components resulting in cost efficiencies, technology sharing and global manufacturing support. It will provide the two companies the opportunity to greatly shorten product development time, while achieving significant manufacturing cost reduction.
“Kayaba is aiming to become a global systems supplier of automobile steering products, similar to the shock absorber business. With a strategic collaboration with Visteon, Kayaba anticipates maximum synergistic effects in terms of R&D, production, and purchasing of components,” said Junichi Yamamoto, Kayaba’s managing director, Automotive Parts Division. “This alliance with Visteon will enhance quality, cost, and delivery of the respective steering products and we are pleased to better serve existing and new customers around the world.”
Visteon is a leading full-service supplier that delivers consumer-driven technology solutions to automotive manufacturers worldwide and through multiple channels within the global automotive aftermarket. Visteon has a global delivery system of more than 130 technical, manufacturing, sales, and service facilities located in 23 countries. It has 81,000 employees working in three business segments: Dynamics and Energy Conversion; Comfort, Communication and Safety; and Glass.
Kayaba Industry Company Ltd. is the leading manufacturer of hydraulic components and systems in Japan globally serving products for land, sea, and air applications; automobiles, motorcycles, construction, material handling & agricultural equipment, aircraft, rail & industrial equipment. Kayaba, with worldwide employees of 5,800 is supplying products from seven business units (divisions) with 15 manufacturing facilities in Japan and 12 manufacturing/sales facilities around the world.