Denso investing $1.6 billion in electric drive development

Denso investing $1.6 billion in electric drive development

Toyota subsidiary betting heavily on future powertrains.

Subscribe

Southfield, Michigan – Denso, the world's second largest mobility supplier will invest approximately $1.6 billion throughout the next three years to support its aggressive development and production of electrified automotive products, systems, and technologies.

Denso is committed to advancing automotive innovation and anticipating the changing needs of our customers in the transportation industry. Electric vehicles are increasingly becoming the norm throughout the world, and to meet the rising global demand for automotive electrification technologies and products, Denso will strengthen its ability to develop and produce them," said Yukihiro Shinohara, senior executive office.

To accelerate business execution around electrification, Denso is establishing the Electrification Innovation Center at Denso's Anjo Plant in Anjo, Aichi, Japan, in May 2020. The Electrification Innovation Center will conduct advanced R&D, develop and test prototypes, and launch newly developed automotive electrification products, systems, and technologies.

In addition, Denso and Toyota Motor Corp. have agreed to consolidate their electronic component businesses within Denso, Toyota's Hirose Plant will be transferred to Denso in April 2020. Denso will use the Anjo and Hirose Plants to establish safe, efficient, and sustainable manufacturing processes for electrification-related components. The production lines established at the plants will be rolled out to Denso's manufacturing companies and affiliates worldwide.

Denso has long developed and produced key products for electric vehicles, including inverters and motor generators used in hybrid vehicles and battery packs for mild hybrid vehicles, and it helped pioneer the Prius.