TAKATA CORPORATION Business Report FY2010
|(in million of JPY)|
|FY2010||FY2009||Rate of Change
|Sales||390,876||350,914||11.3||Despite the negative effects of the great earthquake in March, overall sales increased year-on-year, supported by a recovery in vehicle production in the global market.|
|Operating income||26,818||14,654||83.0||-Income increased partly as a result of company-wide efforts to reduce fixed costs and other costs.|
Sales and highlight by geographical regionJapan
Sales were strong in the first half of the year, because vehicles sales were driven by the rush demand prior to the completion of the eco-car incentive program. The Company's continuous efforts to reduce costs also contributed to a favorable result. In the second half of the year, however, monthly vehicles sales in Japan dropped year-on-year for the straight seven months after the eco-car scheme completed in September. Although the Company suffered minimum loss from the fall, it saw its sales sharply decrease in March due to the impact of the Great East Japan Earthquake.
Vehicles sales were strong especially in the U.S., which showed double-digit growth on a year over year basis. Sales were also supported by favorable vehicle sales in Brazil.
Vehicle sales in Germany and France started to pick up in the second half of the year, while those in some countries suffered falls due to financial instability and slowing economy. Sales to German automakers, the Company’s major customers in Europe, were bolstered by the strong vehicle exports to the U.S.A. and China because of the weak euro.
The Company enjoyed strong sales in Asia, thanks to a rise in vehicle production and sales in the region. The world's largest vehicle market of China continued to grow, topping the global ranking list of vehicle production and sales for two years in a row. Automobile production and sales in India also increased, showing double-digit growth from the previous year's results. Vehicle production rose significantly also in Thailand.
Contracts- In 2011, the Company started supplying seatbelts and airbags for the Daihatsu Mira e:S as well as for the 2011 GM Chevrolet Volt.
(This information was obtained through interviews conducted by MarkLines in November 2011)
Awards- Ford announced that it is adding 13 new companies to its Aligned Business Framework (ABF), bringing the total to 90 members. The new ABF suppliers are: Akebono; Automotive Lighting; Benteler; Brembo; Federal Mogul; Gentex; GKN; Hayes Lemmerz; Key Safety Systems; Michelin; Ronal GmbH; Samvardhana Motherson Reflectec and the Company. Ford created ABF in 2005 to strengthen its collaboration with key suppliers. (From a Ford press release on April 23, 2010)
- The Company received the Technology & Development Award from Toyota Motor Corporation in February 2011. This award is in recognition for the development of Airbelt system for the Lexus LFA. This is a seatbelt system which inflates like an airbag at the time of impact. (From a press release on February 28, 2011)
|(in million of JPY)|
R&D Structure-The Company has R&D bases in three regions: Japan (Takata Corporation), US (TK Holdings Inc.) and Europe (Takata-Petri AG).
-Commercialization of new technologies are carried out in each region.
Research and Development Activities
Developing smaller airbags
- Smaller airbag modules are increasingly required in line with reduced installation space in vehicles. In response to such needs, the Company is working on downsizing the gas generators and introducing a new packaging process. Its proprietary Vacuum Folding Technology (VFT) uses a unique vacuum folding method to make more compact airbag modules. (This information was obtained through interviews conducted by MarkLines in November 2011)
-The Company conducted investigation, research and development activities as well as development of devices that consist of protection systems including inflators and electronics, using different approaches for collision configuration or system function, such as passenger protection systems against frontal collision, side collision and rollover, pedestrian protection systems, motor cycle passenger protection systems, collision avoidance systems and driver support systems. The Company also conducted research and development activities on child restraint systems.
Technological PartnershipBiometric Alcohol Testing Systems
TK Holdings Inc., North American subsidiary of the Company, announced the partnership, including an equity investment, to jointly develop with TruTouch Technologies a non-invasive alcohol detection product for the automotive industry. New technological advancements now make it possible to measure a potential driver's intoxication level by quickly analyzing light reflected from a people's skin. TruTouch Technologies, based in New Mexico, U.S., develops and manufactures non-invasive biometric alcohol testing systems. (From a press release on January 17, 2011)
SRS Seatbelt Airbag
-The Company has introduced the "Air belt," a seatbelt that inflates like an airbag at the time of the collision, to passenger cars for the first time in the world, the company announced on November 25. A new seatbelt will be first installed under the name of "SRS Seatbelt Airbag" in the Toyota Lexus LFA slated to be launched in December. When the vehicle collides, an airbag loaded in the webbing will inflate to the shoulder and head of an occupant to mitigate the impact from both the front and side. In the front collision, a belt portion of the seatbelt will inflate to extend the contact area on the chest of an occupant to disperse or mitigate the impact on the chest. In the side collision, the inflated belt will protect the occupant's temporal and constrain its movement, thus preventing hitting with side windows and other structures in the cabin. (From an article in the Nikkan Jidosha Shimbun on November. 26, 2010)
|(in million of JPY)|
Investment in FY2010
-The Company invested in establishing a new plant in Tianjin, China, while continuing spending on its second plant in India. In addition, each segment set up new production lines.
Constructing New Facilities
|Equipment to be installed||Estimated amount of investment
(in million JPY)
|TK Holdings Inc.
(Auburn Hills, MI, USA)
|Takata India Private Limited (India) Incorporated
|Equipment to produce seat belts, airbags and steering systems||4,382||Jan.2008||Mar.
|Takata Petri RUS LLC
|Equipment to produce seat belts, airbags and steering systems||2,200|| Nov.
|PT. Takata Automotive Safety Systems Indonesia
|Equipment to produce seat belts, airbags and steering systems||1,600|| Apr.