North America History Introduction
You may have read the story about how Akira “Andy” Kataoka’s journey to the United States in 1964 to start DENSO’s venture into North America. It started small, but with DENSO Spirit, continuous effort and support from thousands of team members across the region, we can be proud of our achievements.
As part of our 75th anniversary, we’ve collected stories, articles, and photos chronicling not only the history of DENSO in Japan, but globally, including a section on North America.
DENSO moved its North America operations to Southfield, Michigan, in 1975, establishing what is now DENSO International America, Inc. (DIAM) in 1985. The 80s were a busy decade with the formation of several manufacturing operations in the region – DENSO Manufacturing Michigan (DMMI) in Battle Creek, Michigan, started in 1985 and DENSO Manufacturing Tennessee (DMTN), located in Maryville, Tennessee, started in 1988. Progress continued throughout the 1990s and 2000s, with other locations being added to DENSO’s regional footprint.
Design Process Off and Running
In the beginning, DIAM engineering mainly consisted of application engineering, but in the 1990s, HVAC and Instrument Cluster teams were established and began design efforts. This resulted in several designs, including HVAC, AC and meter) cluster units for multiple regional customers. (see photo below of cluster team).
These early design projects sparked deeper collaboration between engineering and manufacturing teams in North America as well as with teams in Japan - creating a unique advantage for DENSO. As communication between design and manufacturing teams improved, it allowed local design teams to assess the manufacturing process and collaborate more closely with the manufacturing teams. This was the start of genba in North America.
Further Expansion
As design and manufacturing expanded in North America, DIAM took on more responsibility and grew its footprint in Southfield as well as across the region. Beginning with one building in the 1980s (now DENSO 1 and DENSO 2), DIAM added DENSO 3 and DENSO 4, eventually purchasing the other buildings (10, 30, 40, 20).
Automakers Look to External Suppliers
Except for a few specialized products, DENSO customers were sourcing most of their products to their in-house suppliers. This all changed in the late 1990s and early 2000s, as business expansion led to a growth opportunity for suppliers, transitioning from component suppliers to system suppliers.
Global Business to Europe and China
In the early 2000s, DIAM began supplying the Detroit Three customers around the world. They expected suppliers to have a presence in the regions they served. This led to increased global business, especially in the European Union.
As a result, North America’s collaboration particularly with DENSO Germany and Italy and all other regional manufacturing sites was strengthened. And since DENSO had provided global support to Japanese automakers since the company began, it had a well-established foundation to build upon.
Research and Development
By 2010, DIAM had been designing and testing products for nearly two decades. However, in the early design years, DENSO’s core product design was still handled in Japan. Though efficient, it did not always provide customers a product they were looking to launch in the North America market, which often has different needs than the Japan market. DIAM realized we needed to establish research and development (R&D) capabilities in this region.
In 2011, DENSO established the Silicon Valley Innovation Center to focus on advanced engineering and R&D. Additional R&D offices were opened in 2019 in Pittsburgh, Pennsylvania and Plano, Texas. All this happened in conjunction with the automotive industry’s entry into its C.A.S.E. (Connected, Autonomous, Shared, Electrification) era, and so DENSO’s transition from an automotive supplier to a mobility supplier began.
Into the Future
To further support the transformation into C.A.S.E. technologies, DENSO established its Two Great Causes in 2021 – Green and Peace of Mind. As a result, product development and manufacturing are now focused on preserving the environment and keeping people safe.
This focus has opened other opportunities that DENSO looks forward to expanding into, including Urban Air Mobility, energy management and agriculture. When Andy Kataoka established our North America operations more than half a century ago, it was an exciting achievement. But the next 60 years of DENSO in North America will surely be just as, if not more, exciting, and full of growth.