European Regional Headquarters

Fiscal 2012 Results

The European auto market saw vehicle production fall short of the previous year due to the economic recovery slowing in the face of the European sovereign debt crisis.

Results for fiscal year under review

Despite an increase in sales mainly because European auto manufacturers achieved strong exports, currency exchange losses led to sales of ¥387.2 billion, a decrease of 3.5%, or ¥14.1 billion, over the previous year.

Operating income was ¥6.4 billion, a decrease of 41.6%, or ¥4.6 billion, over the previous year, mainly due to deterioration in the product mix.

Supply of Tandem Solenoid Starter for Start/Stop Systems Commence

Supply of a new starter (Tandem Solenoid starter) for start/stop systems that cuts the time required for engine restart commenced in September 2011 for the Jaguar XF, the first such supply of the starter overseas.

Start/stop systems reduce fuel consumption by stopping the engine when the vehicle is stopped. Use of DENSO starters for start/stop systems is expected to improve fuel economy by 4-8% compared to conventional starters. Particularly in Europe, where the market for start/stop systems is rapidly expanding, DENSO products have earned a strong reputation for their excellent fuel-saving benefits, so increased sales to automakers are expected going forward.

Priority Activities Under Medium-Term Plan

Our goal in the European market is establishing ourselves as a partner trusted by customers and a leader in the development of cutting-edge technologies. To achieve this, we successfully solidified a foundation for increasing sales going forward to Japanese and European auto manufacturers.

European automakers are accelerating the shift to emerging growth markets, and we are developing a global support system that will allow us to surely win orders even in emerging countries.  

Developing Cutting-Edge Technologies

Europe is poised to strengthen CO2 emission regulations and safety regulations ahead of the rest of the world, and related production development activities are heating up along with competition to acquire business. DENSO will therefore strengthen its technical centers and promote development and sales aligned with regional needs while designating information safety, human-machine interfaces (HMIs), integrated starter generators (ISGs),for electric hybrid vehicles (EHVs) and common rail systems as medium-term growth sectors that will support our European business in the future. 

Expansion of Business

Looking ahead, growth is projected in the Russian market, so we plan to consider expanding operations while keeping a close watch on market trends. In the aftermarket business, we will work toward establishing a foundation for the business by enhancing OE product lines, including engine management systems (EMS), and bolstering sales capabilities in each country.

Net Sales

Operating Income

Tandem Solenoid starter for start/stop systems

Sales Target

Aachen Engineering Center

Yoshikazu Makino

In charge of DENSO International Europe
Executive Director

Growth strategies for European region

In Europe, which is a technologically advanced region, DENSO will focus on the field of safety as well as the conventional thermal engineering and powertrain fields, and globally send out and make use of our accumulated technology. Furthermore, we consider that it is necessary to contribute to global growth, as well as Europe's, by strengthening our relationships with customers and striving to expand sales of products for vehicles to customers in Europe and other regions.

In addition, we will strive to expand our European business by establishing a delivery system, strengthening our aftermarket business by increasing the product lineup, and by examining our entry into the Russian market, where growth is expected. On the production front, we aim to implement cost reduction policies, promote local procurement, and achieve a robust production system.

As regards the future market environment, sluggish business conditions originating from the European sovereign debt problems are projected to continue for a while, and DENSO will strive to conduct effective business activities that achieve a good balance between near-term earnings and future growth.