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Aisin Seiki Co., Ltd. is a leading international manufacturer and supplier of sophisticated automotive components for engines, driving systems, suspensions, and clutches. It also is involved actively in the fields of die-cast parts and home appliances, manufacturing knitting and sewing machines and other apparel machinery, beds, toilet fixtures, and gas heat-pump air conditioners. Although Aisin is working to increase non-automotive sales, only about 6% of 1989 sales were non-automotive.
Aisin Seiki is one of 15 members of the Toyota Group, and is about 22%-owned by Toyota Motor Corporation, to which 70% of Aisin's products are sold. Aisin Seiki's automotive original-equipment manufacturing dominates its sales.
Aisin was founded in 1943 as Tokai Aircraft Company, by Kiichiro Toyoda, the founder of the Toyota Group. Tokai Aircraft was founded to manufacture engine parts for World War II aircraft. In 1945, at the close of the war, Tokai Aircraft switched its production to sewing machines and automotive parts, both products that had been in short supply during the war. In 1949 Tokai Aircraft Company changed its name to Aichi Kogyo Company. This change marked the beginning of Aisin Seiki Company as it exists today.
During the 1950s and 1960s, Aisin's operations were confined to Japan. As part of the Toyota Group, Aisin grew steadily, supplying parts to its parent automotive company and continuing to produce sewing machines. The year 1969 and the 1970s, however, saw aggressive international growth for the company. In 1969 Aisin reached a technical agreement for power-steering gears with Zahnradfabrik Friedrichshafen of West Germany. Aisin-Warner Limited was also established as a joint venture in 1969.
Aisin U.S.A. was formed in 1970, and in 1971 Aisin Europe was established in Belgium. A technical agreement for bumper shock-isolators was concluded with Menasco Manufacturing Company in the United States in 1972. The formation of Aisin (U.K.) Ltd. and Aisin (Australia) Pty. Ltd. also took place in 1972. The Liberty Mexicana subsidiary was formed in Mexico in 1973, and Aisin do Brasil was established in Brazil in 1974. The year 1977 saw the formation of Aisin Asia in Singapore, and in 1978 Aisin Deutschland was established in West Germany. Finally, in 1979, the Elite Sewing Machine Manufacturing Company was established in Taiwan as a joint venture.
Aisin U.S.A. was established to import aftermarket auto parts for imported cars--mostly Toyotas--in the United States and also to import specially prepared aftermarket parts for U.S.-made automobiles. In 1990 Aisin U.S.A. imported twice as many parts for American cars as for imported cars. At the same time, Aisin Seiki Company supplied a wide range of products worldwide through its network of 14 overseas subsidiaries and its branches in North America, Europe, Southeast Asia, and throughout the Pacific. In 1989, only 5% of Aisin's sales had been to export markets.
Since World War II the Japanese economy has been growing steadily. The increase in individual consumption brought about a sharp rise in domestic demand, and business expanded. Aisin answered the increased demand for consumer production and has worked consistently to improve efficiency in its factories, increase sales, and cut costs through rationalization.
Managers of the automotive sector worked during the late 1980s to increase sales of automotive-body products such as seat components, sun-roofs, and electronic control equipment for automatic transmissions. This increase contributed to an almost 10% sales growth in 1989. Automotive-body products are the largest single group of products Aisin Seiki offers, comprising about 25% of sales.
By 1990 Aisin's home and industrial and the new business sectors were still very small in scale but growing rapidly. Through expanded sales of gas heat-pump air conditioners and beds, sales increased 14.2% in 1989. Into the 1990s, intensive research and development has continued in new products such as cryocoolers, Stirling engines, and a supplemental drive unit for artificial human hearts.
During the late 1980s Aisin made efforts to strengthen project development in the United States by separating the manufacturing division from Aisin U.S.A. and creating a new subsidiary, Aisin U.S.A. Manufacturing Company. Aisin America, Inc. was also established to control jointly both the manufacturing and sales divisions.
Aisin develops highly competitive, high-performance products. The company hopes that quality-assurance activities, upgraded production efficiency, and positive sales activities will help strengthen its production system. Aisin expects to continue its economic growth. Factors such as the introduction of the Japanese consumption tax, a rise in petroleum prices, the instability of the foreign-exchange rate, and a deceleration in international business, however, may hurt business.
Principal Subsidiaries: Aisin U.S.A., Inc.; Aisin America, Inc. (U.S.A.); Aisin U.S.A. Mfg., Inc.; Liberty Mexicana S.A. de C.V. (Mexico); Aisin do Brasil Com. e Ind., Ltda. (Brazil); Aisin Europe, S.A. (Belgium); Aisin Deutschland GmbH (Germany); Aisin (U.K.) Limited; Aisin (Australia) Pty. Ltd.; Aisin Asia Pte., Ltd. (Singapore); Elite Sewing Machine Manufacturing Co., Ltd. (50%, Taiwan); Institut Minoru de Recherche Avancee S.A. (France).
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