JATCO Ltd. Business Report FY ended Mar. 2012
Business Highlights
FY ended Mar. 31, 2012
-The Company announced that its Belt CVT for medium FWD vehicles (JF011E) is installed on the Renault "Megane", which was released by Renault Japon in May 2011. (From a press release on May 27, 2011)
Recent Development Outside Japan
-The Company announced on March 6 its plans to increase production of continuously variable transmissions (CVTs) in Mexico and China by the middle of 2013. Plans are to raise the yearly production capacity from the current 700,000 to 1,200,000 units in Mexico, and from 730,000 to 900,000 units in China. In addition, the Company is going to start operation of a new plant in Thailand with the capacity to manufacture 500,000 units a year, which will bring up the Company's overseas production capacity to 2.6 million units a year. The Company said it will supply 4-speed automatic transmissions for compact, front-engine, front-wheel-drive vehicles made by a Russian automaker AvtoVAZ, starting in June this year. In Mexico, the Company will begin producing the newest, CVT8 in March, and also the CVT7 in the fall. This will be followed by production launch of CVTs for hybrid vehicles in 2013. Jatco's plant in Guangzhou, China, which now has the capacity to produce 380,000 CVTs a year, will ramp up production to 730,000 units within the next couple of months, and further to 900,000 units in the spring of 2013. The Guangzhou facility has been producing CVT7 since 2011. The expansion programs are intended to meet growing demand especially from Nissan Motor. The amount to be invested is undisclosed. Furthermore, the Company is currently constructing a new plant in Thailand, planning production launch around June this year at a yearly rate of 500,000 units. Its annual production volume is expected go up to 700,000 units by 2016. The percentage of automotive transmissions and other products manufactured overseas now stands at about 20 percent of the Company's total production volume. The Company is looking to boost the ratio to 72 percent by the business year 2018, the target year for raising its global sales to 1 trillion yen. The Company will deliver 4-speed automatic transmissions for installation on the "Granta" manufactured by AvtoVAZ of Russia, which is partly owned by Renault. In preparation for the new business, the Company will set up a new sales office in Tolyatti (east of Moscow, Russia) by June this year. (From an article in the Nikkan Jidosha Shimbun on March 7, 2012)
<China>
-The Company announced that it commenced production of continuously variable transmissions (CVTs) with an auxiliary gearbox in China, the first in overseas countries. Its subsidiary, JATCO (Guangzhou) Automatic Transmission Ltd., began to produce the products to be supplied to Dongfeng Nissan for its "Sunny" compact model. The annual production capacity, which starts with 120,000, is planned to be increased up to 240,000 by autumn. JATCO Guangzhou has been manufacturing CVTs dedicated to medium-sized front-wheel drive vehicles. Additional production of CVTs with an auxiliary gear box to the Chinese operation will boost the Company's global turnout to over 1 million a year combining its plants in Fuji and Kakegawa districts. (From an article in the Nikkan Jidosha Shimbun on April 23, 2011)
Business Policy
-The Company has set a target for the fiscal year 2018 of doubling its global capacity to manufacture automatic transmission systems, which include continuously variable transmissions (CVTs), to 10 million units a year, and greatly increasing their sales to 1 trillion yen, which represents an 80 percent rise from the result in fiscal year 2011. The Company is looking to establish new plants in untapped countries to support Nissan Motor and other Japanese automakers' global expansion projects, while expanding the capacity at its existing plants in countries such as China. In an effort to meet new needs of the fast growing emerging markets and boost sales, the Company will work on developing and commercializing CVTs exclusively for these markets, which require minimum investment in plants and equipment and reduce cost for production. (From an article in the Nikkan Jidosha Shimbun on August 9, 2011)
New Company
-The Company celebrated a Foundation Stone Laying Ceremony at JATCO (Thailand) Co., Ltd., its manufacturing subsidiary in the Amata Nakorn Industrial Estate, Chonburi, Thailand. It is the Company's third overseas manufacturing facility, following Mexico and China. Production commencement is scheduled for mid 2013. Its initial annual production capacity will be approx. 500,000 units of JATCO CVT7, CVT with auxiliary gearbox for mini and small FWD vehicles. (From an article in the Nikkan Jidosha Shimbun on December 13, 2011)
Contracts
-The Company announced that its continuously variable transmissions (CVTs) with auxiliary transmission systems are installed on the Dongfeng Nissan "Tiida", which was released in China in May 2011. The JF015E CVTs are designed for use in mini- and small-sized, front-wheel-drive vehicles. (From a press release on May 30, 2011)-The Company announced that its Belt CVT for medium FWD vehicles (JF011E) is installed on the Renault "Megane", which was released by Renault Japon in May 2011. (From a press release on May 27, 2011)
Recent Development Outside Japan
-The Company announced on March 6 its plans to increase production of continuously variable transmissions (CVTs) in Mexico and China by the middle of 2013. Plans are to raise the yearly production capacity from the current 700,000 to 1,200,000 units in Mexico, and from 730,000 to 900,000 units in China. In addition, the Company is going to start operation of a new plant in Thailand with the capacity to manufacture 500,000 units a year, which will bring up the Company's overseas production capacity to 2.6 million units a year. The Company said it will supply 4-speed automatic transmissions for compact, front-engine, front-wheel-drive vehicles made by a Russian automaker AvtoVAZ, starting in June this year. In Mexico, the Company will begin producing the newest, CVT8 in March, and also the CVT7 in the fall. This will be followed by production launch of CVTs for hybrid vehicles in 2013. Jatco's plant in Guangzhou, China, which now has the capacity to produce 380,000 CVTs a year, will ramp up production to 730,000 units within the next couple of months, and further to 900,000 units in the spring of 2013. The Guangzhou facility has been producing CVT7 since 2011. The expansion programs are intended to meet growing demand especially from Nissan Motor. The amount to be invested is undisclosed. Furthermore, the Company is currently constructing a new plant in Thailand, planning production launch around June this year at a yearly rate of 500,000 units. Its annual production volume is expected go up to 700,000 units by 2016. The percentage of automotive transmissions and other products manufactured overseas now stands at about 20 percent of the Company's total production volume. The Company is looking to boost the ratio to 72 percent by the business year 2018, the target year for raising its global sales to 1 trillion yen. The Company will deliver 4-speed automatic transmissions for installation on the "Granta" manufactured by AvtoVAZ of Russia, which is partly owned by Renault. In preparation for the new business, the Company will set up a new sales office in Tolyatti (east of Moscow, Russia) by June this year. (From an article in the Nikkan Jidosha Shimbun on March 7, 2012) <China>
-The Company announced that it commenced production of continuously variable transmissions (CVTs) with an auxiliary gearbox in China, the first in overseas countries. Its subsidiary, JATCO (Guangzhou) Automatic Transmission Ltd., began to produce the products to be supplied to Dongfeng Nissan for its "Sunny" compact model. The annual production capacity, which starts with 120,000, is planned to be increased up to 240,000 by autumn. JATCO Guangzhou has been manufacturing CVTs dedicated to medium-sized front-wheel drive vehicles. Additional production of CVTs with an auxiliary gear box to the Chinese operation will boost the Company's global turnout to over 1 million a year combining its plants in Fuji and Kakegawa districts. (From an article in the Nikkan Jidosha Shimbun on April 23, 2011)
Recent Developments in Japan
-The Company celebrated on Feb. 24 shipment of its new continuously variable transmission (CVT), the CVT8, at its facilities at Yagi-cho, Nantan, Kyoto Pref. The Company has challenged for the first time to start up manufacturing its product together with its plant in Mexico, which will also begin production of the new CVT next month. The Yagi facilities will first output the units for Nissan vehicles to be sold in the U.S.A. and then produce those for the Japanese market in April. The combined production capacity for the new CVT in Japan and Mexico is planned as two million units for FY 2013. Although the Company has provided four series of CVTs, it plans to respond to growing global demands with the two series: the new CVT8 for 2 to 3.5-liter vehicles and the CVT7 for mini to 1.6-liter small vehicles. (From an article in the Nikkan Jidosha Shimbun on February 27, 2012)Business Policy
-The Company has set a target for the fiscal year 2018 of doubling its global capacity to manufacture automatic transmission systems, which include continuously variable transmissions (CVTs), to 10 million units a year, and greatly increasing their sales to 1 trillion yen, which represents an 80 percent rise from the result in fiscal year 2011. The Company is looking to establish new plants in untapped countries to support Nissan Motor and other Japanese automakers' global expansion projects, while expanding the capacity at its existing plants in countries such as China. In an effort to meet new needs of the fast growing emerging markets and boost sales, the Company will work on developing and commercializing CVTs exclusively for these markets, which require minimum investment in plants and equipment and reduce cost for production. (From an article in the Nikkan Jidosha Shimbun on August 9, 2011)New Company
-The Company celebrated a Foundation Stone Laying Ceremony at JATCO (Thailand) Co., Ltd., its manufacturing subsidiary in the Amata Nakorn Industrial Estate, Chonburi, Thailand. It is the Company's third overseas manufacturing facility, following Mexico and China. Production commencement is scheduled for mid 2013. Its initial annual production capacity will be approx. 500,000 units of JATCO CVT7, CVT with auxiliary gearbox for mini and small FWD vehicles. (From an article in the Nikkan Jidosha Shimbun on December 13, 2011)R&D
R&D Facilities
| Name | Location |
| 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. |
R&D Activities
-The Company will conduct application study and development on continuously variable transmissions (CVTs) in Thailand, starting in 2013. Leveraging its experience in locally engineering products for vehicles produced in Thailand, the Company intends to streamline its overall development activities on a global basis. The Company already launched development operations in China in 2011, as it accelerates localization of engineering functions, following production launch in emerging countries. The Company is going to start manufacturing the Jatco CVT7 in Thailand in the middle of FY2013, which will become the first Thai-made CVT. The Jatco CVT7 is designed for use in mini cars and compact vehicles, which are based on a front-engine, front-wheel-drive architecture. In the initial year, the Company plans to produce 500,000 CVTs. Addition of the development functions will further increase the Company's presence in Thailand. (From an article in the Nikkan Jidosha Shimbun on January 5, 2012)Product Developments
Jatco CVT 8 for 2.0 to 3.5-liter engine front-wheel drive vehicles and Jatco CVT8 Hybrid for front-wheel drive vehicles-The Company unveiled its new generation Jatco CVT 8 for 2.0 to 3.5-liter engine vehicles and Jatco CVT8 Hybrid for front-wheel drive vehicles. Jatco CVT8 model achieves an improvement in fuel economy of up to 10% compared to previous CVTs for comparable vehicles. The new transmission features a ratio coverage of 7.0, and friction reduced by up to 40%. Jatco CVT8 will be featured on the Nissan model which will be introduced in North America in 2012, then globally thereafter. The Nissan hybrid system incorporates one electric motor and two clutches into the new Jatco CVT8 HYBRID. Nissan plans to release a new hybrid vehicle with this system in North America in 2013. The Company will produce Jatco CVT8 and Jatco CVT8 HYBRID in both Mexico and Japan from early 2012 onward. (From a press release on October 13, 2011)
Investment Activities
Investments Outside Japan
<Thailand>-The Company announced that it will establish a manufacturing plant, which will produce CVT with auxiliary gearbox for mini and small FWD vehicles, in Chonburi, Thailand. With a total investment of approximately 20 billion yen, the new company, JATCO (Thailand) Co., Ltd., covers a land area of approximately 160,000 square meters. Production is slated to begin in the middle of fiscal year 2013 with volume estimated at 500,000 CVT units per year. This marks the Company's third overseas plant following Mexico and China. The Company will also become the first manufacturer of CVTs in Thailand. Launched in 2009, cumulative production of the JATCO CVT with auxiliary gearbox stands at approximately 700,000 units and it is now installed in such vehicles as Nissan "Juke", "March (Micra)", Suzuki "Swift" and "Wagon R". (From a press release on June 30, 2011)