3. Business diversification (2) Alternators

[1] Acquiring Magneti Marelli’s rotary devices business and establishing DENSO MAQUINAS ROTANTES do BRASIL LTDA. (DMBR)

In March 1999, DENSO acquired Magneti Marelli Manufacturing (MMM, now DMIT) of Italy, the rotary devices business unit of MM.
To enhance the group’s competitiveness, MM had planned to sell off MMM, which produces starters, alternators, wiper motors, and other rotary devices, and to concentrate on the powertrain and air conditioning businesses. Meanwhile, DENSO had been considering local production of electrical equipment in line with the entry of Japanese automobile manufacturers into Europe.
MM hoped to sell the business unit to DENSO, with which it had maintained good relations ever since concluding a comprehensive partnership with DENSO in the air conditioning business in 1990. The intentions of MM and DENSO matched, and DENSO acquired an 80% stake in MMM.
MM had also established Magneti Marelli do Brasil S.p.A. as a Brazilian subsidiary in July 1979. Located in Hortolândia roughly 110 km inland to the northwest of São Paulo, this subsidiary manufactured fuel injection equipment and other powertrain products, and imported and sold wiper products belonging to the rotary devices business.
DENSO’s acquisition of MMM also coincided with the transfer of the rotary devices business in Brazil.
In February 1999, Magneti Marelli do Brasil spun off the rotary devices business division from them, thereby establishing Magneti Marelli Maquinas Rotantes. In October 1999, the company changed to its current name of DENSO MAQUINAS ROTANTES do BRASIL LTDA. (DMBR). DMBR’s manufacturing plant was located on the grounds of the Magneti Marelli do Brasil Hortolândia Plant as before, and DMBR continued to lease 1,700 m2.