TOKYO — Toyota Motor Corp. said on Friday it had reached an agreement with Denso Corp., its main supplier, to consolidate all core electronics component operations of both companies within Denso.
Japan’s largest automaker said it would hold talks with Denso to discuss transferring production of electronics components made at its Hirose plant, near Toyota’s global headquarters, around the end of 2019.
Denso, one of the world’s largest auto components suppliers, would take over mass production of electronics components used in Toyota’s vehicles from 2022, the automaker said.
Denso manufacturers components ranging from air conditioning systems to semiconductors. It already counts Toyota as its biggest customer, accounting for nearly half of its annual sales. Toyota is Denso’s biggest stakeholder, owning 24 percent of the supplier’s shares.
Toyota also said it had concluded a memorandum of understanding with Toyota Tsusho Corp., its trading arm, to consider transferring the automaker’s sales and marketing operations for Africa to Toyota Tsusho from January 2019.
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