JATCO Ltd Business Report FY2009

Business Highlights

FY2009 (FY ended Mar. 31, 2010)


-Followings are major contracts from press releases in 2009.
Maker/ Model Products
Nissan NV200 Vanette 4-speed ATs for compact- and medium-sized front-wheel drive vehicles
Nissan Fuga 7-speed ATs for medium and large rear-wheel drive vehicles
Nissan Roox Next-generation CVTs for mini and small front-wheel drive vehicles
Renault Koleos Belt CVTs for medium front-wheel drive vehicles
Suzuki Kizashi Belt CVTs for medium front-wheel drive vehicles
Suzuki Alto Next-generation CVTs for mini and small front-wheel drive vehicles, 4-speed ATs for mini and 1-liter class front-wheel drive vehicles
Mitsubishi Motors RVR CVTs for medium front-wheel drive vehicles

-The Company will strengthen its efforts to win orders from Renault S.A., France, for its automatic transmissions. It will actively promote its CVTs (continuously variable transmissions) and Step ATs (gear-shifting automatic transmissions) with a focus on emerging markets of China, India and South America, where the dissemination of passenger cars is highly expected. Renault and Nissan announced their policy to further promote sharing of powertrains as part of their alliance reinforcement efforts. The supplier also sees new business opportunities with Renault, which emphasizes growth in the emerging markets, where AT vehicles are expected to spread, rather than in Europe, where manual transmission vehicles are dominant. (From an article in the Nikkan Jidosha Shimbun on Apr. 17, 2009)

-The Company announced that JATCO (Guangzhou) Automatic Transmission Ltd. (JGZ), its subsidiary in Guangzhou, China, launched commercial production of continuously variable transmissions (CVTs). The new facility is the Company's second plant outside Japan following the one in Mexico. It manufactures CVTs for 2.0-2.5 liter class vehicles such as the Nissan Sylphy, Teana, Qashqai, and X-Trail produced at Dongfeng Motor Co., Ltd. (DFL), a joint-venture unit between Nissan Motor Co., Ltd. and Dongfeng Motor Corporation. The Company has invested 4 billion yen in the new plant, which has adopted the Company's high-quality global production system. Its annual production capacity for CVT, which helps improving vehicle fuel efficiency, is expected to reach 140,000 units. With the addition, the Company intends to absorb increased requirements for environmentally friendly technology. (From an article in the Nikkan Jidosha Shimbun on Sep. 29, 2009)

Business Overview

-The Company has completed specification integration of major components of its most-selling transmissions, CVTs (Continuously Variable Transmissions) for mid-size vehicles. It has reviewed the variety of its torque converters, which is now decreased to 28 types, approx. one third of the former 80 types. By working together with its clients, the designs have been optimized and the integration has been completed. According to the Company, the effect of streamlining through specification integration should be large for torque converters as the item's cost is comparatively high among transmission parts. The Company, therefore, will extend this knowhow broadly to other automatic transmissions, aiming for higher competitiveness. It has successfully reduced types of torque converters for mid-size vehicle CVTs by establishment of the methods for higher fuel efficiency and performances. (From an article in the Nikkan Jidosha Shimbun on Jan. 8, 2010)

-It is certain that FY2009 sales of continuously variable transmissions (CVTs) at the Company will exceed those of Step-type automatic transmissions (geared automatic transmissions) for the first time. Even after the new vehicle market slowed down since the fall of 2008, CVTs have been installed in a growing number of vehicle models. Sales of these cars have been steadily rising, gaining increased popularity for its fuel-saving attribute. In fiscal year 2009, unit sales of vehicles equipped with the Company's CVTs are likely to increase 19.5 percent year-on-year to 1.9 million vehicles, with ratio of CVT sales among overall automatic transmission sales at the Company gaining 6 percentage point year-on-year to 52 percent. Sales of vehicles featuring the Company's CVTs are expected to increase further in fiscal year 2010 to over 2 million vehicles, which is likely to bring up the ratio of CVT sales at the Company to around 60 percent.(From an article in the Nikkan Jidosha Shimbun on Jan. 26, 2010)

-The Company will expand its continuously variable transmission (CVT) business. In fiscal year 2010, the Company aims to sell 2.3 million CVTs worldwide, which is a 20 percent increase from the volume estimated for fiscal year 2009. This is the first time for the Company to aim at more than 2 million. While working consistently to absorb needs of automakers that are expanding their lineup of fuel efficient vehicles, the Company has maintained stable growth in the CVT business even after the fall of 2008 when the global financial crisis badly impacted the automotive industry. The Company aims to achieve its target buoyed by both the Japanese eco car incentive scheme that was extended until the fall of 2010, and the increasing international drive to slash CO2 emissions from vehicles. (From an article in the Nikkan Jidosha Shimbun on Mar. 29, 2010)


R&D Facilities

Head Office Fuji City, Shizuoka Pref.
Atsugi R&D Center Atsugi City, Kanagawa Pref.
Okazaki R&D Center Okazaki City, Aichi Pref.
Motegi Proving Ground Haga-gun, Tochigi Pref.

Product Developments

Next generation continuously variable transmission
-The Company and Nissan Motor Co., Ltd. announced the joint development of a next generation continuously variable transmission (CVT) designed to reduce size, weight and friction. A belt-operated CVT integrated with an auxiliary gearbox for the first time in the world has downsized a pulley to achieve a compact design. Transmission efficiency of the CVT per se is said to improve 10 percent compared with current products, and fuel economy of a vehicle equipped with the new CVT is also expected to improve 10 percent. It is planned to be installed on volume production models within a year in combination with engines of displacement smaller than 2 liters. (From an article in the Nikkan Jidosha Shimbun on July 23, 2009)

Investment Activities

Investments Outside Japan

-The Company announced its plan to expand the facility at JATCO (Guangzhou) Automatic Transmission Ltd. (JGZ), its manufacturing subsidiary in China, for larger production capacity. In order to meet the increasing demand for continuously variable transmissions (CVTs), a new production line with an annual production capacity of 240,000 units will be constructed. In April 2007, the Company established JGZ, which started production of belt CVTs for 2.0-2.5 liter class vehicles. With the plant's current annual production capacity of 140,000 units, JGZ's annual production capacity will be increased by 70% to 380,000 units. The total investment for the construction of the new facility and production equipment is 5.3 billion yen (approx. 400 million RMB) and the new line is expected to start operations in mid 2011. The number of JGZ employees will be increased to 700 from current 270. (From an article in the Nikkan Jidosha Shimbun on Nov. 26, 2009)