KARIYA, Japan, Aug. 27, 2018 /PRNewswire/ -- Aisin Seiki Co., Ltd (AISIN) and DENSO Corporation (DENSO) today announced that they have reached a basic agreement to establish a new joint venture company to develop and sell electrification driving modules. The company will be capitalized with the participation ratio of AISIN 50% and DENSO 50%.

The automotive industry is in an era of profound transformation, particularly in technologies for electrification, automated driving and connected driving. Electrification is one of the key disrupters impacting the automotive industry. Companies need to accelerate the development of technologies that meet the needs of auto makers and consumers and help maintain a sustainable society free from environment problems such as global warming, atmospheric pollution and resource and energy problems.

Electrification requires a driving module package that integrates key components, such as transaxles, motor generators and inverters. This joint venture will develop and sell driving modules customized to meet performance, cost and regional requirements.

AISIN and DENSO will focus on driving modules for hybrids, plug in hybrids, fuel cell vehicles and electric vehicles, especially in China where the market for electric vehicles is expected to rapidly expand.

Details are still being discussed and the plan is for the new company to launch in March 2019. The collaboration of two companies will support their commitment to maintain sustainable society.

About DENSO in North America
DENSO is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electronics and information and safety. With its North American headquarters located in Southfield, Michigan, DENSO employs more than 23,000 people at 28 consolidated subsidiaries and 4 affiliates across the North American region. Of these, 25 are manufacturing facilities located in the United States, Canada and Mexico. In the United States alone, DENSO employs more than 17,000 people in Alabama, Arkansas, California, Iowa, Georgia, Kentucky, Michigan, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee and Texas. DENSO's North American consolidated sales totaled US$10.9 billion for the fiscal year ending March 31, 2018. For more information, go to www.denso.com/us-ca/en. Connect with DENSO on Facebook at www.facebook.com/DENSOinNorthAmerica.

About DENSO Corporation
DENSO Corp., headquartered in Kariya, Aichi prefecture, Japan has more than 220 subsidiaries in 35 countries and regions (including Japan) and employs approximately 170,000 people worldwide. Consolidated global sales for the fiscal year ending March 31, 2018, totaled US$48.1 billion. Last fiscal year, DENSO spent 8.8 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges. For more information, go to www.denso.com, or visit our media website at www.denso.com/global/en/news/media-center/.

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SOURCE DENSO