Toyoda Gosei targets innovation, new mobility

Kiyosu, Japan – Toyoda Gosei has laid out the details of its ‘three-pillared’ medium-to-long term business plan which involves innovation in products and manufacturing as well as targeting 'strategic growth areas.'

The first pillar of the strategy, said the Japanese group in a statement, is “venturing into innovation and actions for new mobility.”

Here, the group will focus on the early formation of businesses in fields that are new to the group using “revolutionary technologies”, said the automotive supplier in its full year financial results published last month.

For instance, the group said it was working on “safe and secure mobility”, as it expected vehicle collision safety assessments to become stricter in North America and other countries.

The manufacturer said it had developed “new-construction driver-side airbags”, which protect the head and trunk of drivers in the event of diagonal collisions. The product, it said, is incorporated into Honda Motor’s new Civic models.

The group’s pedestrian protection airbag, which protects pedestrians in the event of traffic accidents, is also incorporated into Subaru’s latest Legacy Outback models.

In addition to automotive innovations, TG said it will increase focus on its “next-generation rubber” e-Rubber, which moves using electricity.

The group said it developed “FeelSole,” which is a smart insole with a sensor function that allows users to collect data on the pressure under their feet while exercising.

TG said it has begun shipping samples to golf schools operated by Mizuno Corp.

The second pillar of group activities is “key strategies for growing markets and fields with growth potential.”

Here TG said it has been taking steps to strengthen its safety-system operations, as one of its mainstay fields.

To this end, the group entered into an operating and capital partnership with Japanese manufacturer of firefighting hoses and automotive safety products Ashimori Industry last year.

The two organisations are collaborating to leverage their operating assets and expertise to expand their combined development capability and product-competitiveness.

The partners, said TG, aim to advance the development of airbag and seatbelt systems, as well as “next-generation safety systems” for EVs and self-driving vehicles.

Toyoda-Gosei’s third pillar of activity will focus on “innovative manufacturing at production sites.”

Here, the group said it was promoting the development of smart production sites to support sustainable growth of the group.

As part of this, TG said in the future its plants will be “a clean production site that emits no CO2 or waste”; “where anyone can work actively,” with the aim to have "zero accidents and zero complaints."

The group is also working to increase productivity through the introduction of collaborative robots as well as IoT systems that centrally manage production process.

The growth strategy is part of Toyoda Gosie’s latest attempts to improve profitability, following the “severe conditions” of 2021, which prompted a series of "rationalisation" of expences.

During the year, which was characterised by challenges such as the Covid-19 pandemic, chip shortages and raw materials supply crisis, the Japanese group reported a 15% year-on-year rise in revenue to Yen830 billion (€6.2 billion).

TG linked the rise in sales to a recovery in automotive production following the Covid-19 decline and despite a slowdown in manufacturing due to semiconductor shortages.

Operating profit, however, decreased 6.3% to ¥34.1 billion, and profit attributable to owners of parent decreased 33.7% to ¥23.3 billion mainly due to rising raw material prices and cost burdens.