Japanese Automotive Technology Companies Expand


Published on June 22nd, 2014 | by Daniel Sherman Fernandez


Japanese Automotive Technology Companies Expand

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With a slowing domestic demand and rivals moving strongly into their markets, Japanese in-car technology suppliers are on a acquisition of foreign companies to gain quick access to new technology, wider customer base and enter new market segments. At least three major Japanese suppliers, Denso Corp., Toyoda Gosei Co. and Tokai Rubber Industries have made acquisitions in recent months.

In early June, Denso snapped up Ease Simulation Inc., a telematics startup near Pittsburgh that provides remote vehicle diagnostics for commercial fleet owners. That deal follows Denso’s acquisition in September of a 50 percent stake in Adasens Automotive GmbH, a German developer of image-recognition technology that allows onboard cameras to identify road obstacles.

Denso said its Silicon Valley operation will focus on cybersecurity, big data and autonomous driving all major growth industries as automakers race to improve their collision avoidance technology. While dealer diagnostics looks like a profitable niche, collision avoidance could be a huge revenue generator for Denso and other mega-suppliers.

Denso, like its German rivals, has developed a broad array of technology such as radar, lidar, vision sensors, lane-keeping assist, and adaptive cruise control that are needed for collision avoidance. The company also is developing a vehicle-to-vehicle communication system to help prevent collisions at intersections.

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