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Yorozu Chairman Shido: Becoming a “Company of Choice” Beyond Keiretsu Ties — Leveraging Operational Excellence and Standardization for Competitive Advantage

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Yorozu Corporation

Mr. Akihiko Shido, Representative Director, Chairman, and Chief Executive Officer (CEO)

About This Interview

In the automotive industry, in addition to electrification, multiple changes are occurring simultaneously, including the rise of Chinese automakers, shorter development cycles, trade friction, and geopolitical risks. In this context, automotive parts suppliers are being forced to leverage the cooperative relationships they have cultivated through long-standing business relationships with affiliated companies, while simultaneously reducing their dependence on specific automakers, and honing their own competitiveness.

Yorozu, a major suspension-parts manufacturer, has reduced its reliance on Nissan from roughly 90% of its sales to less than 60%, while expanding business with other automakers, including Toyota. In China, Yorozu took a locally led approach to the development of Dongfeng Nissan’s electric vehicle (EV) “N7” and plug-in hybrid vehicle (PHEV) “N6.” The Gifu plant, the Yorozu Sustainable Manufacturing Center (YSMC), which is Yorozu’s first new plant in Japan in approximately 50 years, is positioned as a base for expanding both the customer base and production technology.

We spoke with Chairman Akihiko Shido, who has led Yorozu Corporation (Yorozu) for many years and also served as chairman of the Japan Auto Parts Industries Association, about the role that the keiretsu (corporate affiliates) has played, the competitiveness necessary for suppliers going forward, his development experience in China, and the on-site capabilities and standardization that support manufacturing.

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