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5. Aisin Group (China) Business Report FY ended Dec. 2017

Aisin Group (China) Business Report FY ended Dec. 2017

Joint Venture

-Aisin Seiki announced that its subsidiary, Aisin AW has decided to establish automatic transmission production companies in China, via joint ventures with the Chinese automobile manufacturers Guangzhou Automobile Group Motor (GAC Motor), and Zhejiang Geely Holding Group, subsidiary Zhejiang Geely Luoyou Engine (Geely Automobile), respectively. Aisin AW began automatic transmission production in China via a joint venture with China FAW Group in 2004. Now it plan to produce 6-speed ATs at a scale of 400,000 units per year at the newly established joint ventures with GAC Motor and Geely Automobile, respectively. Aisin AW will have 60% stake of each JV. (From a press release on April 25, 2018)

Factory Reorganization

-Aisin Seiki and the Aisin Group will restructure production lines at Tangshan Aisin Gear (Tangshan Gear), a manual transmission production factory in China, and begin manufacturing automatic transmissions there starting August 2019, in an initiative to build an automatic transmission production capacity of 12.5 million units in 2020. Tangshan Gear began production in 1996, and manufactures drive plates, which are manual and automatic transmission parts. Now, the existing manual transmission production line will be restructured, and a new automatic transmission assembly line will be established to supply 6-speed automatic transmissions for front-wheel drive vehicles to automobile manufacturers in China at a scale of 400,000 units per year. (From a press release on April 24, 2018)

Product Delivery

-In May 2018, Takaoka Lioho (Tianjin) Industries Co.,Ltd held the “Toyota’s First Delivery Ceremony on 280B Parts” in the DQ Hot Stamping Project Workshop, the 280B parts will be equipped with the first model of the Toyota’s TNGA platform project. (From a press release on June 15, 2018)

Awards

-On March 23, 2018, Dongfeng (Wuhan) Industrial Co., Ltd. won Dongfeng Passenger Vehicle Company’s 2017 excellent supplier award. Along with the company, Aishin AW Co., Ltd., Nanjing Aotecar New Energy Technology Co., Ltd. and other companies received the same award. Dongfeng (Wuhan) Industrial Co., Ltd. has been supporting Dongfeng Fengshen’s 2018 three-year revitalization plan. (From a press release on March 28, 2018)

-AW China Co., Ltd. received the following awards in 2016:
the Quality Achievement Award, the Superior Cost Performance Award, and the Best Collaboration Award from Toyota Motor (Changshu);
the Excellent Quality Award from Tianjin FAW Toyota;
the Excellent Development Award from SAIC,
and the 2015 Top 10 Supplier Award from FAW Car.
(From a press release on March 25, 2016)

Investment in China

-Tangshan Aisin Gear Co., Ltd. began expansion of its transmission plant. The total investment in this project is expected to reach CNY 128 million. The project includes additions of 2 assembly lines, 2 grinding lines, and 1 transmission case line. After the construction is completed, the plant will be able to produce 100,000 F621 series manual transmissions and 100,000 AF52 series automated manual transmissions per year. The company supplies its products to OEMs including Tianjin FAW Toyota, Sichuan Toyota, Shenyang Brilliance Jinbei, and Great Wall Motor. (From news releases issued by multiple sources on July 8, 2016)

R&D Structure

-Aisin (Nantong) Technical Center of China Co., Ltd. began operations on July 5, 2016. The new research center covers an area of 26,000 square meters in the Nantong Economic Technological Development Area. Research facilities were constructed on 12,000 square meters of land in the first phase of the construction project. The center develops, designs, tests, and evaluates automotive components, and also offers related technical and consulting services. The center is Aisin Seiki’s second technical center outside Japan, following the center in the U.S. (From news releases issued by multiple sources on July 22, 2016)