Chapter 1: The Era of Founding (1949-)

3. Partnership with Bosch

1949-

(3) Learning from Bosch

1953
The collaboration with Robert Bosch GmbH in 1953 provided us with more than just technological advancements. It encompassed a wide range of areas, including production management, quality control, and even business management. This broad learning experience significantly elevated our management standards and competitiveness.
Bosch engineer on technical guidance in production engineering section
Bosch engineer on technical guidance in production engineering section

During the ongoing negotiations in 1953, President Torao Hayashi visited the Robert Bosch headquarters in West Germany (as it was then) to finalize the contract details. During his visit, President Hayashi had the opportunity to thoroughly see various facilities, including factories and research laboratories. This visit marked a crucial turning point for him. He realized that beyond technology, there was much to learn from Bosch's systems for production management, technological development, and overall business management.

The technical partnership that was subsequently formed covered a wide range of electrical components, including 14 items such as starters and distributors. This partnership became a significant point of interest in Japan's automotive industry at the time.

Reference:Overview of Bosch technical partnership

For our company, achieving comprehensive manufacturing capabilities for electrical components—from generation to ignition—had long been a cherished goal.

Recognizing the practical difficulties of implementing everything at once, we decided to defer the inclusion of spark plugs and fuel injection pumps to a later date. However, the establishment of the technical partnership with Robert Bosch GmbH finally enabled us to realize our long-held ambition of becoming a “comprehensive manufacturer of electrical components.”

Deep DiveWhat We Gained from Bosch
After the partnership was established, Robert Bosch GmbH provided us with a wealth of resources, including product catalogs, blueprints, equipment and tooling diagrams, and test benches. All these materials were invaluable in understanding Bosch's world-class products.

Among these resources, what particularly caught the attention of our management and field supervisors was the “Bosch Norm.” This comprehensive set of stringent standards and regulations covered not only production aspects but also organizational and management practices.

The most effective aspect of this technical assistance proved to be the person-to-person exchanges on the ground. To facilitate this, we dispatched three of our employees to Bosch to acquire technical skills, while Bosch sent two experienced engineers to our company for technical guidance. This exchange between the two companies' engineers continued for many years, fostering deeper relations and understanding.

Over time, as we expanded the scope of our partnership and renewed contracts, the interpersonal exchanges between our companies grew even richer. This ongoing interaction became a vital foundation for our long-term business growth and success.

Deep DiveThe Excellence of Bosch
Our engineers who visited Robert Bosch GmbH were particularly impressed by the company's robust research and development infrastructure. The research division alone housed 4,500 individuals, including 250 PhD holders. The sight of a large truck fully accommodated within a cold-resistance testing chamber, along with 200 vehicles lined up for product testing, was nothing short of spectacular.

Moreover, every aspect—materials, design, processing, machinery, inspection, and service—was thoroughly standardized, with clear roles and work standards for each employee. The production lines were also a testament to Bosch's ingenuity; within limited spaces, they had innovatively arranged machinery, materials, and tools to achieve mass production.

In essence, the comprehensive system management of Bosch's factories, equipment, and product sales was a significant learning point for our company.