Aisin AW Business Report FY2006

Business Highlights

New Joint Ventures
Aisin Seiki Co., Ltd., the Company, and Aisin Engineering Co, Ltd. (Kariya City, Aichi Prefecture) announced that the three companies will jointly establish a software development company. Operations at the new company are scheduled to begin on April 1, 2007. In line with increasing application of electronic devices in the auto industry, requirements for software development is growing. The establishment of the development company will allow the group to slash development lead time and improve product quality. Embedded directly in each electric control unit and device, the software program serves as a crucial tool for controlling and networking the in-vehicle systems. The new company will integrate all the group's software development activities, preparing for the projected increase in demand. Aisin plans to locate its offices in Nagoya City and Kariya City in the Chubu region, Yokoyama City in the Kanto region, and one in Tohoku (the hubs of the automotive industry in Japan). (From an article in the Nikkan Jidosha Shimbun on Feb. 1, 2007)

Toyota and the Company will acquire from Bosch 30,000 shares (50% of all) in CVTEC Co., Ltd., a 50-50 joint venture company of push belts for Continuously Variable Transmissions (CVT) between Bosch and the Company. By dissolving the joint venture the Company will make CVTEC its subsidiary. The Company will hold a 66.6% share in CVTEC while Toyota having the rest 33.4% holding. (From an article in the Nikkan Jidosha Shimbun on Dec. 27, 2006)