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  5. Yazaki Corporation Business Report up until FY ended Jun., 2015

Yazaki Corporation Business Report up until FY ended Jun., 2015

Business Highlights

Recent Years

Financial Overview

-Sales for the fiscal year ended in June 2015 reached JPY 1,662.3 billion, an increase of 6.8% from the previous year's result due mainly to favorable currency translation. The company was able to generate a profit on a before-tax basis, but it made a loss at the bottom line, as delivery, production, and completion law infringement problems in foreign markets impacted its profitability.

Business Policy

Entering into Combiner Head-up Display (HUD) market
-In 2013, the Company announced that it will enter into the Combiner Head-up Display (HUD) market. The Company aims to commercialize and propose the new HUD as standard equipment for new models of automakers between 2015 and 2016. Currently, the Prius of Toyota Motor Corporation is equipped with windshield-type HUD which projects speed and other information on the windshield. Meanwhile, the combiner HUD projects a virtual image just in front of the windshield and as an overlay to the street via a combiner placed on a dashboard. The combiner HUD does not require a big display which should be adjusted according to the sizes of windshields for the windshield-type HUD. Therefore, the HUD can be installed on a small vehicle. The all-new Axela of Mazda Motor Corporation uses a combiner HUD developed by Nippon Seiki Co. Ltd. Likewise, BMW will install a combiner HUD on the all-new Mini which will be released in 2014. These examples show that the installation of combiner HUDs on small vehicles are increasing. (From an article in the Nikkan Jidosha Shimbun on November 29, 2013)

Increase production of DC connectors for quick chargers
-In 2013, the Company announced that it will double production of DC connectors for quick chargers used in electric vehicles (EV) and plug-in hybrid vehicles (PHV) to over 20,000 units annually. The Company has already started shipping samples of its new DC connectors. The boost in production is in anticipation of increased demand in EV and PHV chargers and connectors in Japan due to government subsidies. Yazaki currently produces connectors for CHAdeMO-compliant DC quick chargers at the Daito Plant which belongs to its subsidiary Yazaki Parts Co., Ltd. in Kakegawa, Shizuoka, Japan. CHAdeMO is a Japanese-initiated uniform charging system for EVs and PHVs. (From an article in the Nikkan Jidosha Shimbun on October 16, 2013)

Acquisitions

-In 2012, the Company announced that it will purchase all the shares in its Indian joint venture for manufacturing wire harnesses, Tata Yazaki AutoComp Limited (TYA). TYA will thereby become a wholly-owned subsidiary of the Company. Yazaki and Tata AutoComp Systems Limited each owning 50 percent of the TYA shares agreed on this acquisition as of November 2, 2012. The Company will complete the purchase process in January 2013, change the corporate name, and pursue business expansion of manufacture and sales of automotive wire harnesses through the new structure. TYA was established in 1997 as the 50:50 joint venture between Yazaki and Tata AutoComp. It is capitalized at INR 1 billion (USD 18.4 million) and the number of employees is approx. 5,600. (From an article in the Nikkan Jidosha Shimbun on Nov. 6, 2012)

-In 2012, the Company agreed to purchase a Russian automotive wire harness company. This is the Company's first production facility in Russia, representing a significant footprint toward expanding operations in a rapidly growing automotive market. The Company acquired a 100 percent equity in "Industrial Volga Company" Limited Liability Company (IVC) located in Gorodets, Nizhniy Novgorod, which is owned by a local Russian company "PromInnovacii" Limited Liability Company. The company name will be changed to Yazaki Volga Company in August. IVC produces and supplies wire harnesses primarily to Russia's largest automaker AvtoVAZ. The acquired wire harness supplier with the workforce of about 1,000 expects to generate EUR 35 million in sales in 2012. (From an article in the Nikkan Jidosha Shimbun on July 13, 2012)

R&D Activities

Commercializing small and lightweight connectors
-In 2014, the Company and National Institute of Advanced Industrial Science and Technology (AIST) have jointly developed a new testing device for automotive connectors. The new testing device allows the Company to measure contact load and electric resistance of a connector while checking contact between metals with a scanning electron microscope. The new testing device will be used to accelerate studies for reducing size and weight of connectors. Connectors for automotive wiring harnesses are made of sheet copper plated with tin. Reducing size and weight of a connector while maintaining performance and reliability requires a detailed analysis of the correlation between metal contact and contact electric resistance on the surface of the tin oxide film. AIST will further improve the precision of the device. The Company aims to commercialize a small and lightweight connector by making use of the outcomes of this development work. (From an article in the Nikkan Jidosha Shimbun on September 26, 2014)

Product Development

Head-up display (HUD)
-In 2015, the Company has developed a full color head-up display (HUD) with a large display area. By raising magnification factor of the optical system, the display area has significantly been expanded by 11 times that of the past product. The new HUD displays images on the windshield. The conventional product uses a vacuum fluorescent display (VFD) as the light source and projects single color images of green, while the new product adopts a full-color liquid crystal display. The distance between the aspherical mirror and the display device has been reduced by increasing magnification factor of the optical system. While maintaining the unit size, the display area has been enlarged from 31.4 mm by 62.8 mm to 90 mm by 240 mm. The aspherical surface technology to correct distorted images and the technology to correct images of the display device enabled projecting sharp images. (From an article in the Nikkan Jidosha Shimbun on December 1, 2015)

E-connector
-During the fiscal year ended in June 2015, the Company developed E-connector interior lighting driver.
Major features:

  • Controls 4 personal lamps with 3 dimming levels, and 2 linear lighting systems with 16 color options and 4 dimming levels
  • Use of LEDs reduces power consumption by 87% compared with conventional products that use light bulbs.
  • The independent and compact unit can be installed on the headliner, eliminating the need to integrate it into and redesign the vehicle's electronic control unit.  
  • The lighting driver with communication functions reduces 11 wires and saves resources.

Wire harnesses for long-slide seats
-During the fiscal year ended in June 2015, the Company developed wire harnesses integrated with long-slide seats rails. This technology halved the size of the wire harness casing. In addition, use of plastic material for the casing reduced the product weight by 80%, which led to a 5kg weight-saving per vehicle. The lightweight product helps reducing fuel consumption.

High-voltage service plugs
-During the fiscal year ended in June 2014, the Company developed a high-voltage service plug with a double-lock mechanism. The double-lock system produces a time lag when connecting and disconnecting the electric circuit. This prevents electric shock injuries during maintenance. The new service plug is 50 percent lighter than conventional plugs, because it has thinner walls and requires fewer components.

AC electric chargers
-In January, 2014 the Company started receiving orders for its newly-developed AC electric chargers for electric vehicles (EVs) and plug-in hybrid vehicles (PHVs). The charging connector and cable supplier is making its first entry into the EV/PHV electric charger market to start a new business. The Company is anticipating growing needs for the chargers from personal use in detached houses and collective housings. The new charger is a wall-mounted type with electric circuits stored in a resin case, and can save installation time. The Company expects to sell 5,000 units of the charger in the coming three years. (From an article in the Nikkan Jidosha Shimbun on January 15, 2014)

New quick charging connector for electric and plug-in hybrid vehicles, which is compliant with CHAdeMO 1.0
-In 2012, the Company announced it has developed a new quick charging connector for electric and plug-in hybrid vehicles, which is compliant with CHAdeMO 1.0, a Japanese-initiated uniformed charging system. The products will be delivered to such markets as Japan, North America, Europe and Russia by March 2013. (From an article in the Nikkan Jidosha Shimbun on May 24, 2012)

R&D Activities

Wire harness protector made from TABWD flame-retardant plastic
-In November 2014, the Company commercialized a new wire harness protector made from TABWD (Toyota Auto Body WooD plastic), a high-strength and heat- and flame-resistant plastic that contains cedar wood waste. Use of the plastic material reduced the product weight of the protector used around the engine by 10%. It also contributes to power saving in the production process, because TABWD can be formed at lower temperatures. The Company has been working on developing products utilizing the TABWD technology since 2011.

Commercializing small and lightweight connectors
-In 2014, the Company and National Institute of Advanced Industrial Science and Technology (AIST) have jointly developed a new testing device for automotive connectors. The new testing device allows the Company to measure contact load and electric resistance of a connector while checking contact between metals with a scanning electron microscope. The new testing device will be used to accelerate studies for reducing size and weight of connectors. Connectors for automotive wiring harnesses are made of sheet copper plated with tin. Reducing size and weight of a connector while maintaining performance and reliability requires a detailed analysis of the correlation between metal contact and contact electric resistance on the surface of the tin oxide film. AIST will further improve the precision of the device. The Company aims to commercialize a small and lightweight connector by making use of the outcomes of this development work. (From an article in the Nikkan Jidosha Shimbun on September 26, 2014)

-During the fiscal year ended in June 2014, the Company developed a compact and lightweight connector equipped with low-friction terminals. Use of low-friction terminals eliminated the need for adding a lever to each connector. The lever was used to easily connect the connectors that produce high friction. The new connector is 50 percent smaller and 30 percent lighter than conventional products. It also reduces CO2 emission in the production process by about 40 percent.

Recycling copper contained in wiring harnesses
-In 2014, the Company, Toyota Motor Corporation and Toyota Tsusho Corporation announced that they have developed a new technology for recycling copper contained in wiring harnesses. The new technology can produce copper with a purity of 99.96 percent. (From a press release on March 25, 2014)

Investment Outside Japan

<USA>
-In 2013, the Company announced that its subsidiary, will be expanding in Michigan with support from the Michigan Strategic Fund. Circuit Controls Corporation (CCC), a manufacturer of automotive electrical terminals, is planning to expand its manufacturing facility in Emmet County, Michigan in order to support new business. The project will result in the creation of 36 jobs and a capital investment of up to USD 21.7 million.

<Paraguay>
-In June 2013, the Company established Yazaki Paraguay S.R.L., its first facility in Paraguay. The new subsidiary began operating in September 2013. It produces automotive wire harnesses for Yazaki's customers in Brazil. Yazaki Paraguay currently employs 280 people. In line with its expansion projects, the subsidiary plans to increase the workforce to approximately 2,000 by 2018.