1. Home
2. Supplier Database
3. Major Suppliers
4. Nidec Corporation
5. Nidec Corporation Business Report FY ended Mar. 2019

Nidec Corporation Business Report FY ended Mar. 2019

Business Acquisitions

E-Axle
ｰNidec Corporation (Nidec) announced on December 10 that its E-Axle traction motor system has been adopted for a mass-market electric vehicle (EV) for the first time. The E-Axle was adopted by GAC New Energy Automobile Co., Ltd. for the Aion S, a new mass-market EV recently revealed at the Guangzhou Motor Show. Nidec, which sees the potential growth of the Chinese EV market, is currently constructing a plant for the E-Axle in the Pinghu Economic Development Zone in China. The new plant will start mass production in May 2019. The company intends to actively promote the E-Axle to automakers and Tier 1 suppliers. (From an article in the Nikkan Jidosha Shimbun on December 12, 2018)

-Equipped on GAC NIO New Energy Auto’s Aion-LX that debuted at the 2019 Shanghai Motor Show.

Contracts

-Nidec announced that the company has acquired 100% ownership of MS-Graessner and its group companies through Nidec-Shimpo which is the Germany-based affiliate of Nidec's subsidiary, Nidec-Shimpo. In FY 2017, MS-Graessner generated sales of EUR 21.8 million. As a result of the transaction, Nidec-Shimpo is now capable of offering more comprehensive precision gearbox solutions, both linear and angular types, and leveraging Graessner's sales network to expand its sales in Europe which offers a large market for planetary gearboxes. Nidec expects the transaction will offer mutually beneficial opportunities to capture the rapidly growing robotic demand. (From a press release on September 3, 2018)

Joint Venture

-Nidec Corporation (Nidec) announced that the company and France's Groupe PSA have completed the establishment of a joint venture to develop, manufacture and sell automotive electric traction motors and inverters. The new company, Nidec PSA emotors, was established with initial share capitals of EUR 15 million (approximately JPY 1.95 billion), with Nidec Leroy-Somer Holding and PSA Automobiles each holding a 50% of the shares. The France-based joint venture's headquarters and development base are in Carrieres sous Poissy and the production base is located in Tremery. The number of employees, which is 40 at the inception, will be increased by hiring more than 30 new employees by the end of summer 2018, and more in line with business expansion. (From an article in the Nikkan Jidosha Shimbun on May 18, 2018)

Business Partnership

-WABCO Holdings announced that it has signed a Memorandum of Understanding with Nidec Motor (Nidec), a subsidiary of Nidec Corporation, to define, develop, manufacture and commercialize fully integrated electric drivetrain and brake control solutions for longitudinal control of commercial vehicles. The intent is to first develop these technologies for city buses as well as for electric trailer solutions. These solutions can be further scaled to other commercial vehicle platforms as applicable in global markets. WABCO and Nidec will provide best-in-class, efficient energy management, while maintaining stable vehicle dynamics. Also, the electric drivetrain solution will enable improved energy recuperation across all use cases which will contribute to additional efficiency gains. (From a press release on September 19, 2018)

Recent Development outside Japan

<Global>
-Nidec Corporation (Nidec), which is currently exporting automotive motors to the U.S from plants in China, subsidiary, will switch to exporting them from its plant in Mexico due to the Sino-U.S. Trade War. Subsidiary. Nidec the Mexican subsidiary will invest JPY 20 billion in its Mexican plant by the end of March 2019 in order to double its production capacity of motors for automotive applications such as power steering systems, and for home electronics applications. For automotive applications, Nidec will change the layout of its current Mexican plant will devise the facility layout for automotive motors, and for home electrical motors plans to , construct a new plant building on a site adjacent next to the current plant location. In China, Nidec will invest JPY 100 billion in production facilities over the next two years to increase, and boost the production capacity of motors for electric vehicles (EVs), which are expected to become widely adopted domestically The company intends to establish a system to start the mass production of its E-Axle integrated traction motor system, which is comprised of components such as a traction motor, a gear box, and an inverter, and aims to receive orders initially from Chinese automakers. Nidec’s subsidiary in Poland will also establish a mass production system to supply the E-Axle to supply it to European automakers. The E-Axle will be used in new EVs that will be released in the 2020 to 2021 timeframe. (From an article in the Nikkan Jidosha Shimbun on October 25, 2018)

<China>
-Nidec Corporation (Nidec) will increase the annual production of its E-Axle traction motor system that will be mass produced in China from May. The company will produce about 50,000 units of the E-Axle in the fiscal year that ends in March 2020 (FY 2019), and 200,000 units in FY 2021. Nidec has already received orders from GAC New Energy Automobile Co., Ltd. (GAC New Energy Automobile), and aims to win new orders mainly from Chinese automakers. The company intends to establish a track record of mass production to increase sales to Japanese, European and U.S. automakers, as well as Tier 1 suppliers. The E-Axle drive motor system is an integrated unit that combines a motor, a gear box, and an inverter. The company adopted an oil cooling method, reduced the size and weight, and improved output performance. It realized high cost competitiveness with its original round wire technique that realizes the output of the rectangular wire traction motor systems. Nidec is currently constructing a new plant for the E-Axle in Zhejiang Province. The new plant will start supplying the products to GAC New Energy Automobile for the Aion S electric sedan in May. Nidec plans to expand its drive motor sales to JPY 200 billion for 2025 by making annual investments of JPY 150 billion. (From an article in the Nikkan Jidosha Shimbun on February 6, 2019)
 

New mid-term strategic objectives for FY 2020

-Constant pursuit of high growth to sustain profits:

• Consolidated sales target: JPY 2 trillion (includes JPY 500.0 billion based on new M&As)
• Automotive sales alone: JPY 700 billion – 1 trillion
• Consolidated profit margin target: 15% or higher
• ROE (return on equity): 18% or higher (based on target of 60% shareholders' equity ratio)
• 5-region based operations: Japan, China, Asia, the Americas, and EMEA (Europe, Middle East, and Africa)

-Estimated market scale and targeted global market share of automotive products in 2020:

• Electric power steering motors: 70 million units/50% share
• Electric dual-clutch motors: 10 million units/70% share
• Electric oil pumps: 11 million units/30% share
• Electric water pumps: 34 million units/20% share

-Modularization:

• Electric power steering power-packs (Nidec motor with Nidec Elesys ECU)
• Electric oil pump power-pack (Nidec motor, Nidec Elesys invertor, Nidec Tosoku/Nidec GPM pump and case)

-Expanded powertrain business:

• Shifting from hydraulics to electrification. Aiming to launch powertrain business.
• Example: SR motor with built in SiC inverter, which is smaller, lighter, and more energy efficient than existing ones.

-Received orders for components used in the drive systems for low-speed electric vehicles (LSEVs) in China

• Motor, Gear box, Controller, Battery charger
• Focus on products for automobiles in China, and tri-wheel vehicles in India and Southeast Asia

-In-house production of following operations: stamping, plastic-molding, die-casting, shaft machining, housing machining.

-Expanding the use of LiDAR (Laser imaging Detection & Ranging) in the automotive sector (autonomous driving, etc.)
 

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

-Overall, R&D expenses are forecasted to be JPY 75,000 million in the fiscal year ending March 2020.
 

R&D Structure

-Nidec Research and Development Center in Japan, Nidec Research and Development Center in Singapore, and Nidec Research and Development Center in Taiwan conduct research on basic technologies related to motors in general that are expected to become a core part of the Company's global R&D strategy.

<Nidec Corporation>
-Shiga Technical Center engages in research and development activities aimed at new product development, mass production of new models, and improvement of product quality related to small precision DC motors and fan motors, excluding those used for HDDs.
 

R&D Activities

<Nidec Corporation>
-Nidec Corporation is strengthening its development of new products targeting emerging markets such as China, India and Brazil as well as developed markets.
-The Company is developing next-generation of;

• small and high-performance power steering motors,
• motors for applications other than power steering such as seats, brakes and sunroofs, and ancillary electronic control units (ECUs),
• Dual Clutch Transmissions
• brushless motors used for hydraulic and electric power systems
• package products that combine motors with sensors and control units

<Nidec Motors & Actuators>
-Automotive motors: R&D activities in Germany, Spain, and Japan on motors, to increase product life and make them smaller and lighter.

• Seat and sunroof motors: commercialization of compact, brush motor not requiring rare-earth metals
• Engine cooling motors: development of compact and light brush fan motors

-Chassis control: (brakes and steering system):

• Brakes: Commercialization (development/production) of ECU for regenerative braking system, and ECU for electronic stability control systems.
• Electric power steering system: Developed ECU for both brush and brushless motors. Conducting advanced development of ECU for brushless motors designed to provide functional safety

ｰAdvanced safety systems/devices (cameras, millimeter-wave radar systems）

• Advanced product development and commercialization (mass production)

-Other R&D activities:

• Highly functional/high-performance control-valve assembly for automatic transmissions and constant-variable transmissions
• Electric oil pumps: Combining technologies of group companies in optimal manner.
• Electric hydraulic actuator for transmissions
• Traction Motor / Traction Motor System : Development of E-Axle

<Nidec Sankyo>
-With respect to stepping motors, in an effort to expand the range of their applications to automobiles, Nidec Sankyo has been downsizing products, enhancing product performance and improving cost-performance.

<Nidec Motor>
-With respect to vehicle traction motors, Nidec Motor engages in modularization of motors with encoders based upon its rare earth-free SR motor technology, and in development activities aimed at hybridization and electrification of large-sized vehicles such as construction and agricultural machinery.

<Nidec Copal>
-This company is engaged in developing products and elemental technology on system devices such as automotive lenses, automotive motors, etc. at the Tokyo R&D Center.

• Optical products: Switch from developing products for digital cameras, to products for automotive lenses and mobiles.
• Motors: Switch from developing products for digital cameras, to products for mobiles, vehicles, and medical.

-Overall, capital expensiture is forecasted to be JPY 150,000 million in the fiscal year ending March 2019.

-At a Nidec Corporation (Nidec) financial settlement briefing in Tokyo, Shigenobu Nagamori, Chairman of the Board and President, stated that the company intends to establish drive motor plants for electrified vehicles (EVs) in Poland and Mexico. It aims to secure orders from automakers and then decide the details of the plan. Nidec plans to start mass production of drive motors in China in May 2019 and establish a global production system. The company will invest JPY 200 billion in plants and equipment for its automotive business through the end of March 2021, including JPY 100 billion for drive motors. The company expects that as the commoditization of EVs progresses, automakers will not stick to in-house production of hardware, and aims to expand its business by acquiring new orders in the automotive business. (From an article in the Nikkan Jidosha Shimbun on April 26, 2018)

-The Company announced that it has completed the first phase construction of "Nidec Institute for Industrial Science" in Kyoto, Japan, and will start operations from February 20. The six-story building has a floor area of 23,642 square meters. The company plans to invest approximately JPY 30 billion in land, a building and equipment, including a second phase construction. Initially, 350 employees will work at the center, with the headcount increasing to 1,000 after completion of the second phase. (From a press release on February 1, 2018)

-The Company announced that it will invest over JPY 150 billion in plants and equipment in the fiscal year that ends in March 2019 (FY 2018) in order to strengthen its electric vehicle, robot, and home appliance businesses. The company's investment will reach a record high. Nidec is building new plants in and outside Japan, with locations including Ueda City, Nagano Prefecture, and Hanoi, Vietnam. The company will increase its human resources and replace existing plant facilities with the state-of-the-art equipment. (From an article in the Nikkan Jidosha Shimbun on January 11, 2018)

-The Company will expand its in-vehicle motor business. The company will commercialize new products in such new fields as traction motors for use in the drive unit of EVs and next-generation brake systems. Nidec intends to more than double shipments of in-vehicle motors to over 100 million in the fiscal year 2020 (ends in March 2021) from FY 2016 by winning more orders for electric power steering (EPS) motors, its major product. To achieve this goal the company will hire more engineers and boost its production capacity. Also, it will continue advancing its merger and acquisition strategy in its in-vehicle motor business. Nidec's total shipment of motors used in vehicles for FY 2016 slightly increased year-over-year to between 45 million and 46 million units. Under its mid-term business plan "Vision 2020" that ends in FY 2020 the company plans to increase shipments to over 100 million units. The driving force to achieve this goal will be motors for EPS, for which the company is planning to increase shipments from slightly over 15 million units in FY 2016 to a little below 30 million in FY 2020. (From an article in the Nikkan Jidosha Shimbun on April 27, 2017)

Investment in Japan

-Nidec Corporation (Nidec) announced that it will establish a new business base adjacent to its head office in Kyoto City. The new base will have consolidated functions as the second head office and research and development bases of Nidec subsidiaries. A total of four new buildings will be constructed from 2022 to 2030, with an investment of approximately JPY 200 billion. This move is to reinforce the cooperation among Nidec Group members. The combined total of the workers at the new site and the existing head office is expected to reach 5,000. The new 60,000-square-meter site will be located in Morimotocho, Muko City, Kyoto, between the head office and JR Mukomachi Station in Muko City. The site will be home to the second head office building and three buildings for R&D, with a total floor space of about 1,547,000 square meters. The first phase to build the new R&D base of Nidec-Shimpo Corporation and the new head office of Nidec-Read Corporation is scheduled for completion in March 2022. The second phase is planned for finalization between 2025 and 2026, and the third phase to build Nidec’s second head office is scheduled for completion in 2030. (From an article in the Nikkan Jidosha Shimbun on January 10, 2019)

Investment outside Japan

<US>
-Nidec Motor Company officials announced that the company is investing USD 18 million to expand its current operations in Lexington, Kentucky, and add new products to its current product line. Announcement of the expansion follows Nidec’s recent acquisition of Leroy-Somer Americas, located in nearby Lexington, Tennessee. (From Kentucky Department of Economic Development release on June 15, 2018)

<Poland, Mexico>
-At a Nidec Corporation (Nidec) financial settlement briefing in Tokyo, Shigenobu Nagamori, Chairman of the Board and President, stated that the company intends to establish drive motor plants for electrified vehicles (EVs) in Poland and Mexico. It aims to secure orders from automakers and then decide the details of the plan. Nidec plans to start mass production of drive motors in China in May 2019 and establish a global production system. The company will invest JPY 200 billion in plants and equipment for its automotive business through the end of March 2021, including JPY 100 billion for drive motors. The company expects that as the commoditization of EVs progresses, automakers will not stick to in-house production of hardware, and aims to expand its business by acquiring new orders in the automotive business. (From an article in the Nikkan Jidosha Shimbun on April 26, 2018)