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Denso to make organizational changes in bid to cope with industry shift

Denso Corp. said Dec. 27 that it will change its organization and executive responsibility Jan. 1, 2019, in a bid to increase its competitiveness and cope with the paradigm shift in the industry brought about by electrification, automated driving and connected driving.

Denso said it would strengthen the organization for automated and connected driving, upgrade its capability to propose systems and products, as well as boost its information security function and build a core skills development division.

To that end, the Japanese auto parts retailer will, among other things, establish a mobility systems planning division and a mobility systems research and development division. It will also integrate its connected service business for fleet vehicles, such as trucks, buses, and leased vehicles, with DENSO TEN's service business, which caters to commercial vehicles, such as taxis, for expanded scope and expertise, the company said in a news release.

Denso will establish a thermal systems product planning division since the system is essential for promotion electrification, the company said. The system regulates the working temperature of various automobile components such as motor and battery to ensure efficiency and help prevent breakdowns, said Allied Market Research in a study.

The company will reorganize its powertrain systems business group in order to cope with changes in the industry such as the diverse needs of each country and region due to varied diesel engine regulation, the release said. The powertrain is the mechanism by which power is generated and transmitted to the road, surrounding air, water and so forth.

The CV&OH division will also be established, with the aim of consolidating international sales and improving product innovation by establishing a separate division for commercial vehicle and agriculture and construction equipment business.

In December, Denso invested nearly $100 million in software-based startup companies and formed joint ventures for electric vehicles and self-driving systems.