Aisin Seiki raises stake in Toyota Autoparts Philippines

Philippines-based Toyota Autoparts Philippines (TAP), a joint venture of Toyota Motor Corporation–Japan, Toyota Motor Philippines Corporation, and Aisin Seiki Japan is to become a subsidiary of Japanese automotive components supplier, Aisin Seiki, as the latter raises its equity participation from 34% to 61%. The deal is expected to boost TAP’s competitiveness in the manual transmission (MT) business. Under the agreement, TAP will be renamed Toyota Aisin Philippines, Inc. In the future, Aisin will consolidate part of their MT production currently handled by Aisin AI, to TAP, and invest approximately Php1.2 billion to set-up an automatic transmission (AT) component production lines by utilising TAP’s 26 years of operation experience and technologies.

TAP is the first manual transmission hub developed outside Toyota Motor Corporation of Japan established in Aug. 3, 1990. Its products are composed of Manual Transmissions (5 and 6 –Speed Types) used for Innova, Hilux and Fortuner; and Constant Velocity Joint (CVJ) used for Corolla Altis and Vios. About 95% is exported to various Toyota affiliate companies in the Asi-Pacific region, while the remaining percentage is sold locally.

Following the transaction, Toyota and Aisin will further strengthen their collaboration through the optimization of the powertrain production system and new product development. The Aisin Group as a whole aims to improve its competitiveness in the powertrain business.

(PRA)

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