As of March 31, 2001, DENSO operated in 27 countries and regions worldwide
through 142 subsidiariesand 22 affiliates, including 76 production centers.
Under this global system, we conduct business with virtually all of the
The auto industry today faces various issues that are spurring change. Manufacturers
are finding it difficult to produce more vehicles due to lackluster demand
in a mature market, and they are being pressured to address vehicle-induced
environmental problems. Innovative technologies are presenting new and exciting
growth opportunities. In response to slowing growth in their markets, automakers
are reducing costs by manufacturing vehicles on common platforms and developing
models for sale worldwide.
Reinforcing our longstanding business connections with global automakers
is critical to our growth. We have focused on a number of initiatives to
bolster our global operations. We are lowering costs without sacrificing
quality. We are promoting modularization, backed by our ability to propose
new products and systems to automakers. And we are refining our ability
to supply quality products anywhere in the world.
For fiscal 2002, ending March 31, 2002, we have formulated strategies for
all three major regions. In the Americas, we will build upon our established
production centers and sales channels to further bolster our presence. In
Europe, our efforts will focus on increasing production of diesel injection
pumps in Hungary and air-conditioning and electrical components in Italy.
And in Asia, we will increase local procurement and consolidate production
activities at the most advantageous locations.