Toyota supplier Tokai Kogyo buys Nissan-linked Kinugawa to fend off China
What's the deal? Tokai Kogyo Holdings, a Japanese auto parts maker with deep ties to Toyota MotorDealroom has a profile for this one. Try Dealroom →, has acquired NissanDealroom has a profile for this one. Try Dealroom →-linked peer Kinugawa Rubber Industrial Holdings. The acquisition, completed November 2 for an undisclosed price, combines two makers of automotive sealing parts.
Why now? Chinese automakers and suppliers are expanding overseas, raising competitive pressure on Japan's parts makers. That is pushing suppliers to realign beyond their close-knit networks.
What's the endgame? The tie-up is a bid for greater scale. Tokai Kogyo supplies Toyota, while Kinugawa serves Nissan and SubaruDealroom has a profile for this one. Try Dealroom →, and the companies cite gains in procurement, production efficiency, and faster product development.
Their reported annual sales in the business are about ¥83 billion and ¥41.5 billion, respectively.
The signal: This is defensive consolidation rather than a major shift in the global auto industry. As Chinese rivals press into overseas markets, Japanese suppliers are crossing traditional keiretsu lines to survive.
Read more: Nikkei Asia
Image credit: Generated with Gemini
