Toyoda Gosei strengthens alliance with automotive safety specialist Ashimori

Kiyosu, Japan – Toyoda Gosei (TG) is strengthening its business alliance with Ashimori Industry Co. Ltd, an Osaka, Japan-based supplier of automotive safety and functional products.

The Japanese group has signed two MoUs to expand the alliance, in place since 2021, both in terms of business and capital investment, TG announced 28 July.

The move responds to increasing demand for battery electric vehicles and autonomous driving, which require advanced safety systems such as airbags, seatbelts and steering wheels.

Under the extended deal, TG and Ashimori are to “complement each other’s technology and know-how” towards growing sales of airbags and seatbelts.

The partners will also look to optimise their proposals to car makers by integrating their airbag and steering-wheel sales functions and making them more efficient.

Furthermore, the collaboration will look to enhance efficiency in response to stricter safety regulations and unify design specifications based on standardised parts.

Another aim is to optimise sourcing of parts while advancing mutual use of production locations and assessment facilities to improve “both function and performance.”

In addition to the business alliance, TG said it had reached a basic agreement with major shareholder Japan Wool Textile for share-transfers of Ashimori.

As part of the deal, Japan Wool Textile will transfer to TG, 869,400 of common shares (14.48%) it holds in Ashimori Industry.

Once completed, Toyoda Gosei’s number of common shares in Ashimori will increase to 1,703,500 or 28.36% of shares.