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5. JTEKT Corporation Business Report FY ended Mar. 2020

JTEKT Corporation Business Report FY ended Mar. 2020

Outlook for the fiscal year ending in March 2021

-The Company has not released a business forecast because it is still in the process of calculating it, trying to account for the impact caused by the growing coronavirus pandemic.

Acquisitions

Yutaka Seimitsu
-JTEKT Corporation (JTEKT) announced that it has acquired shares on Yutaka Seimitsu Kogyo, Ltd. and made the company its subsidiary. Through this acquisition, JTEKT will attempt the integration of control devices with the differential as well as its optimization as an integrated four-wheel-drive system. JTEKT will also strengthen its business foundation by collaborating with its machine tools and mechatronics businesses. In the future, JTEKT will supply driveline systems which are optimized with its existing products such as steering systems, hub units and driveshafts, by centering on the synergistic effects of JTEKT’s torque management technologies and Yutaka Seimitsu’s knowledge of differential and gear processing technologies. (From a press release on December 4, 2019)

Business Partnership

Formed Commercial Alliance with Startup Plug and Play of the USA
-JTEKT Corporation (JTEKT) announced on September 12 that it has entered into a partnership with Plug and Play LLC (Plug and Play, California, U.S.). JTEKT intends to create innovation in the automotive and new fields by establishing ties with start-up companies through Plug and Play. Plug and Play was established in 2006. It connects start-up companies with venture capital firms and major companies in the fields of mobility, IoT (Internet of Things), logistics, and smart cities, offering business promotion programs at 30 locations in 14 countries including Japan. (From an article in the Nikkan Jidosha Shimbun on September 13, 2019)

R&D Facilities

<Japan>

R&D Activities

1) Steering business

Power Steering

• Received orders for electric power steering systems equipped with redundant backup electrical systems. Making complete, dual electrical systems an integral part of power-steering systems reduces the risk of failure and significantly improves safety.
• In January 2020, the Company announced that it developed an electric-power-steering system that meets the needs of mid-sized and heavy-duty commercial vehicles by improving fuel efficiency and self-driving technology.

Steer-by-wire System

• In anticipation of luxury-car launches from 2021 and after, there is a possibility of developing a level-3 automated power-steering system. Since there are no mechanical links in meeting the requirements for even greater safety, the Company is using a proprietary lithium-ion capacitor as an auxiliary power-supply for the system. Of note, the system is being designed to supply power for a certain period of time, even when the main power-supply is cut off by accidents and the like.

Strengthening Software Development

• In order to strengthen R&D capabilities that are needed to develop self-driving technology and MCUs with integrated motors and electric-control units (ECUs), the Company is enhancing the software-development functions at the Kariya Plant in Aichi Prefecture, along with the functions as the existing R&D Center at the Hanazono Plant. Also, in April 2019 the Company reorganized its R&D functions in charge of developing software for electric-power-steering (EPS) systems, adding a new department designated to develop EPS-embedded software created through a model-based-development (MBD) approach.

Human-Machine-Interface Technology (Haptic Shared Control)

• An electric-power-steering torque sensor predicts the steering angle wanted by drivers to offer a natural feel and eliminate the unnatural feeling coming from the automated steering mechanism. As a result, drivers get the natural feel of steering along with the assistance of automated steering. The Company has been testing a prototype vehicle mounted with this HMI technology, verifying its effectiveness. The Company is working to complete these ECUs equipped with the technology designed for EPS systems, aiming to commercialize them around 2025.

Participating in Proofing and Testing Self-driving Buses
-The Company is participating in the Japan Rail East Rapid Transit Bus (RTB) Project. The project involves proofing and testing lane-keeping technology, high-speed-control systems, in-vehicle-monitoring performance based on remote-monitoring systems, and occupant-movement detection. The testing of various controls based on wireless, signal controls is also a part of the project. In particular, JTEKT is providing the vehicles and steering systems for the project.

2) Drivetrain Business

• The Company is commercially producing a new 4WD system in which an  Intelligent Torque Controlled Coupling (ITCC) for 4WD electronic-control systems and a newly developed electromagnetic clutch have been integrated.
• The Company is planning to launch commercial production in FY2020 of a Torsen limited slip differential for front differentials on compact sports cars.

3) Bearing Business

• The Company developed a “friction and creep control ball bearing” that controls creep and friction occurring inside transmission housings, which is caused by ball bearings.
• The Company developed a non-rotating ball screw designed for electric-power caliber brakes equipped on electric vehicles and hybrid vehicles.

Investment outside Japan

<Morocco>
-JTEKT Corporation (JTEKT) announced on October 16 that it held an opening ceremony for a new plant in Morocco on October 9. About JPY 2.4 billion was spent to construct the plant. The new plant will start mass production of electric power steering systems from October 2020. The annual production capacity will be for about 300,000 vehicles (in 2020). JTEKT aims to market electric power steering systems to European automakers by establishing a beachhead in Morocco. The new plant will house JTEKT’s new subsidiary, JTEKT Automotive Morocco S.A.S., and Fuji Autotech Morocco S.A.S. (FAMO), a subsidiary of JTEKT’s group company, Fujikiko Co., Ltd. FAMO started mass production of steering columns in August 2019, and its annual production capacity will be for about 700,000 vehicles in 2020. (From an article in the Nikkan Jidosha Shimbun on October 17, 2019)