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DENSO looks to increase holding in FUJITSU TEN, making it a group company

Auto parts supplier DENSO Corporation, Fujitsu Limited, and Toyota Motor Corporation have reached a basic agreement to start consideration of changing the capital structure of automotive electronics manufacturer FUJITSU TEN, in which the three companies have stakes. DENSO is part of the Toyota Group.

In the automotive field, the interface between the driver and vehicle is becoming increasingly important due to remarkable technological innovations. Against this backdrop, DENSO has agreed with Fujitsu and Toyota to review specific changes to make FUJITSU TEN a group company of DENSO and to enhance cooperation between the two companies in developing in-vehicle ECUs, millimeter-wave radar (earlier post), advanced driver assistance / automated driving technologies, and basic electronic technologies, among others.

The companies will conduct a review to determine the specific changes, and the companies plan to reach a final agreement by the end of fiscal year ending 31 March 2017.

Fujitsu believes that information and communication technology (ICT) will become increasingly important in developing next-generation vehicles (e.g. connected cars, automated driving). Fujitsu will enhance its collaboration with DENSO and FUJITSU TEN to strengthen the automotive business and mobility IoT business.

By continuing on as FUJITSU TEN’s major shareholder, Toyota is expecting the increase of FUJITSU TEN’s corporate value, which is coupled with the strengthening of the competitiveness of its products. This in turn, contributes to Toyota’s goal of making ever-better cars.

FUJITSU TEN, formerly Kobe Industries Corp., was established in 1949 following the dissolution of Kawanishi Machine Works (founded in 1920). After Kobe Industries Corp.’s merger with Fujitsu in 1968, FUJITSU TEN was established in 1972 as a spinoff of Fujitsu’s radio division.

Since Toyota and DENSO took stakes in 1973, FUJITSU TEN has offered various products and services as a manufacturer of car electronics products including audio and multimedia. Recently, FUJITSU TEN has strengthened its Vehicle ICT business to create new value, while accelerating collaboration with the Fujitsu Group companies to transform itself from a supplier of standalone products to a system manufacturer that proposes and provides connected in-vehicle information equipment and services.

DENSO, Fujitsu, and Toyota will consider changing the capital structure of FUJITSU TEN in which they have stakes as shown below.

Before change After change
DENSO 10% 51%
Fujitsu 55% 14%
Toyota 35% 35%

FUJITSU TEN will take advantage of its competitive edge as a group company of DENSO (a general automotive component manufacturer) and continue to collaborate with the Fujitsu Group in the ICT field. These arrangements will enhance the development of advanced driver assistance / automated driving technologies and basic electronic technologies to make FUJITSU TEN a system manufacturer that provides connected in-vehicle information equipment and services.

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