JATCO Ltd. Business Report FY2008
Business Highlights
Contracts
<Nissan>
-The Company supplied the Nissan Teana with its belt CVTs (the JF011E) designed for medium FWD vehicles as well as belt CVTs (the JF010E) designed for large FWD vehicles. (From a press release on Jun 2, 2008)
-JATCO Mexico, S.A. de C.V has been manufacturing belt CVTs for medium FWD vehicles as well as belt CVTs for large FWD vehicles. These CVTS are being installed in Nissan's Maxima, Altima, and Sentra. (From a press release on Aug 8, 2008)
-The Company supplied the Nissan Murano with its Belt CVTs (the JF011E) for medium front-wheel drive vehicles and belt CVTs (the JF010E) for large front-wheel drive vehicles. (From a press release on Oct 3, 2008)
-The Company supplied the Nissan Kix with its 4-speed ATs designed for compact front-wheel drive vehicles. (From a press release on Oct 31, 2008)
-The Company supplied the Nissan Cube with its belt CVTs (the JF009E) designed for compact front-wheel drive vehicles. (From a press release on Nov 25, 2008)
-The Company supplied the Nissan Fairlady Z with its newly developed 7-speed ATs designed for medium and large rear-wheel drive vehicles. The Nissan car is the first Japanese model equipped with this new AT. (From a press release on Dec 2, 2008)
<Chrysler>
-JATCO Mexico, S.A. de C.V has been manufacturing belt CVTs for medium and large FF vehicles. They are being installed in the Caliber, Compass, and Patriot manufactured by Chrysler. (From a press release on Aug 8, 2008)
<Suzuki>
-The Company supplied the Suzuki Wagon-R & Wagon-R Stingray with its 4-speed ATs designed for both compact vehicles and 1-liter class front-wheel drive vehicles; and also belt CVTs designed for compact vehicles. (From a press release on Oct 3, 2008)
-The Company supplied the Suzuki Alto Lapin with its 4-speed ATs designed for both compact vehicles and 1-liter class front-wheel drive vehicles; and also belt CVTs designed for compact vehicles. (From a press release on Nov 27, 2008)
<Mitsubishi>
-The Company supplied the Mitsubishi Toppo with its 4-speed and 3-speed ATs designed for compact vehicles. (From a press release on Oct 3, 2008)
Restructuring
-The Company announced that it will move its parts standardization plan ahead by two years, in order to increase the profitability of its automatic transmissions. It aims to increase common parts by 20 to 30% in the major automatic transmissions that are of the same type as its Step AT (a gear-shifting automatic transmission). The Step ATs are made for rear-wheel-drive vehicles and mounted on higher-grade vehicles. However, sales of these are especially suffering after the financial crisis that started in fall 2008. It will also consider using the same parts designed for the Step ATs made for front-wheel-drive vehicles because it produces higher volume of these ATs. The intent is to decrease exclusive parts designed for only a single transmission model. The company also will speed up standardizing parts for its two mainline ATs, the 5ATs and 7ATs. The ratio of common parts has already reached 50%. The Company, however, plans to raise this an additional 20% by fully reviewing the parts' specifications. In addition to standardizing parts used in Step ATs designed for front-wheel-drive vehicles so that they can be used on ATs designed for rear-wheel-drive vehicles, the Company is also trying to reduce the total number of parts. (From an article in the Nikkan Jidosha Shimbun on Jan. 15, 2009)
Recent Developments Outside Japan
-JATCO Mexico, S.A. de C.V., its subsidiary manufacturing continuously variable transmissions (CVTs), started operations of a second production line.
>>>See Investment for more details
<Nissan>
-The Company supplied the Nissan Teana with its belt CVTs (the JF011E) designed for medium FWD vehicles as well as belt CVTs (the JF010E) designed for large FWD vehicles. (From a press release on Jun 2, 2008)
-JATCO Mexico, S.A. de C.V has been manufacturing belt CVTs for medium FWD vehicles as well as belt CVTs for large FWD vehicles. These CVTS are being installed in Nissan's Maxima, Altima, and Sentra. (From a press release on Aug 8, 2008)
-The Company supplied the Nissan Murano with its Belt CVTs (the JF011E) for medium front-wheel drive vehicles and belt CVTs (the JF010E) for large front-wheel drive vehicles. (From a press release on Oct 3, 2008)
-The Company supplied the Nissan Kix with its 4-speed ATs designed for compact front-wheel drive vehicles. (From a press release on Oct 31, 2008)
-The Company supplied the Nissan Cube with its belt CVTs (the JF009E) designed for compact front-wheel drive vehicles. (From a press release on Nov 25, 2008)
-The Company supplied the Nissan Fairlady Z with its newly developed 7-speed ATs designed for medium and large rear-wheel drive vehicles. The Nissan car is the first Japanese model equipped with this new AT. (From a press release on Dec 2, 2008)
<Chrysler>
-JATCO Mexico, S.A. de C.V has been manufacturing belt CVTs for medium and large FF vehicles. They are being installed in the Caliber, Compass, and Patriot manufactured by Chrysler. (From a press release on Aug 8, 2008)
<Suzuki>
-The Company supplied the Suzuki Wagon-R & Wagon-R Stingray with its 4-speed ATs designed for both compact vehicles and 1-liter class front-wheel drive vehicles; and also belt CVTs designed for compact vehicles. (From a press release on Oct 3, 2008)
-The Company supplied the Suzuki Alto Lapin with its 4-speed ATs designed for both compact vehicles and 1-liter class front-wheel drive vehicles; and also belt CVTs designed for compact vehicles. (From a press release on Nov 27, 2008)
<Mitsubishi>
-The Company supplied the Mitsubishi Toppo with its 4-speed and 3-speed ATs designed for compact vehicles. (From a press release on Oct 3, 2008)
Restructuring
-The Company announced that it will move its parts standardization plan ahead by two years, in order to increase the profitability of its automatic transmissions. It aims to increase common parts by 20 to 30% in the major automatic transmissions that are of the same type as its Step AT (a gear-shifting automatic transmission). The Step ATs are made for rear-wheel-drive vehicles and mounted on higher-grade vehicles. However, sales of these are especially suffering after the financial crisis that started in fall 2008. It will also consider using the same parts designed for the Step ATs made for front-wheel-drive vehicles because it produces higher volume of these ATs. The intent is to decrease exclusive parts designed for only a single transmission model. The company also will speed up standardizing parts for its two mainline ATs, the 5ATs and 7ATs. The ratio of common parts has already reached 50%. The Company, however, plans to raise this an additional 20% by fully reviewing the parts' specifications. In addition to standardizing parts used in Step ATs designed for front-wheel-drive vehicles so that they can be used on ATs designed for rear-wheel-drive vehicles, the Company is also trying to reduce the total number of parts. (From an article in the Nikkan Jidosha Shimbun on Jan. 15, 2009)
Recent Developments Outside Japan
-JATCO Mexico, S.A. de C.V., its subsidiary manufacturing continuously variable transmissions (CVTs), started operations of a second production line.
>>>See Investment for more details
Investment Activities
Capital Investment
-The Company announced that it will trim its original 30 billion yen capital investment plan by around 20 percent during fiscal year 2008. Despite curtailing its plan to increase production of continuously variable transmissions, the Company still intends to carry out a certain level of capital investments, given that it is scheduled to launch a new transmission model in fiscal year 2009. (From an article in the Nikkan Jidosha Shimbun on Jan. 26, 2009)
Investments Outside Japan
-The Company announced that JATCO Mexico, S.A. de C.V. (JMEX), its subsidiary manufacturing continuously variable transmissions (CVTs) in Aguascalientes State, Mexico, started operating a second production line. Annually, 300,000 CVTs are expected to be produced on this second line, which will raise the annual production volume at JMEX to 700,000 units total from the current 400,000. While JMEX has been manufacturing belt CVTs for medium-size vehicles since November 2005, approximately US$200 million was invested to add the second line as means to respond to growing demand worldwide for CVTs. The new line consists of a machining line to handle cases, gears and pulleys and a heat treatment line. The Company plans to produce belt CVTs for medium to large vehicles on the new production line. (From an article in the Nikkan Jidosha Shimbun on Apr. 18, 2008)
-The Company announced that it will trim its original 30 billion yen capital investment plan by around 20 percent during fiscal year 2008. Despite curtailing its plan to increase production of continuously variable transmissions, the Company still intends to carry out a certain level of capital investments, given that it is scheduled to launch a new transmission model in fiscal year 2009. (From an article in the Nikkan Jidosha Shimbun on Jan. 26, 2009)
Investments Outside Japan
-The Company announced that JATCO Mexico, S.A. de C.V. (JMEX), its subsidiary manufacturing continuously variable transmissions (CVTs) in Aguascalientes State, Mexico, started operating a second production line. Annually, 300,000 CVTs are expected to be produced on this second line, which will raise the annual production volume at JMEX to 700,000 units total from the current 400,000. While JMEX has been manufacturing belt CVTs for medium-size vehicles since November 2005, approximately US$200 million was invested to add the second line as means to respond to growing demand worldwide for CVTs. The new line consists of a machining line to handle cases, gears and pulleys and a heat treatment line. The Company plans to produce belt CVTs for medium to large vehicles on the new production line. (From an article in the Nikkan Jidosha Shimbun on Apr. 18, 2008)