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| Monday, 10 July 2023, 16:03 HKT/SGT | |
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Source: Denso | |
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KARIYA, JAPAN, July 10, 2023 - (JCN Newswire) - DENSO Corporation today announced that it has concluded a memorandum of understanding ("MOU") on starting negotiations for the transfer of selected internal combustion engine parts operations to Niterra Co., Ltd. The two parties reached a decision to sign the MOU during a board of directors meeting on July 10, 2023.
In the process of achieving carbon neutrality, electrification is picking up pace throughout the auto industry. At the same time, the auto industry is working to further evolve internal combustion engines, taking into account differences in energy situations and fuels used in each region and country. Under these circumstances, the automotive parts industry is expected to work to develop products for electric vehicles, while at the same time maintaining the competitiveness of the industry as a whole through various means including promoting business integration for products for internal combustion whose market is expected to shrink in the future. We will continue to meet the needs and expectations of our customers around the world and also we are expected to contribute to the realization of carbon neutrality.
In view of all these factors, DENSO has concluded MOU to transfer business operations for its Spark Plug and Exhaust Gas Sensor products (Oxygen Sensor and Air-Fuel Ratio Sensor) to Niterra Co., Ltd.
Niterra Co., Ltd. boasts some of the world's leading technologies in its field, and by transferring operations related to these core internal-combustion-engine products to them, DENSO aims to enhance the product appeal of internal combustion engines parts by combing technologies and manufacturing capabilities. In addition, DENSO will accelerate the development of products for electric vehicles in preparation for the full-scale of electrification, and will also work on the development of energy management systems which will become increasingly important for electric vehicles. Through these efforts, DENSO will be able to offer products that are appealing to customers in terms of both performance and price in the entire automotive market, including internal combustion engines and electric vehicles, and contribute to the early realization of a carbon-neutral society.
Overview of the MOU:
DENSO and Niterra Co., Ltd. will begin deliberations aimed at a business transfer of domestic and international development, manufacturing, and sales functions for Spark Plug and Exhaust Gas Sensor products (Oxygen Sensor and Air-Fuel Ratio Sensor), which are part of DENSO's internal combustion engines parts, to Niterra Co., Ltd.
Based on this MOU, both parties will proceed with discussions and negotiations toward finalizing the business transfer contract. The transfer will take place only after official approval has been obtained from competition law authorities in all countries and regions concerned, and after fulfilling all other requirements.
Topic: Press release summary
Source: Denso
Sectors: Automotive
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