Aisin Seiki Co., the world’s fifth-largest auto parts supplier, will sell part of its brakes business to Advics Co., a joint venture Aisin helped start with Toyota Motor Corp.
As part of the deal, Aisin will transfer two brake units from Japan and the United States, along with a portion of the supplier’s plant in Kariya, Japan.
Aisin will become the latest in a string of major suppliers to unload portions of their brake units. Last month, Germany’s Robert Bosch GmbH closed the sale of its foundation brake manufacturing business to Tokyo’s Akebono Brake Industry Co. Ltd. And Michigan’s Delphi agreed in March to sell the remaining pieces of its global brake and suspension units to Chinese-owned BeijingWest Industries Co. The then-bankrupt supplier had previously arranged to unload at least seven other brake plants.
Advics was formed in July 2001 through the combination of brake businesses owned by powertrain and electronics supplier Denso Corp., electronics company Sumitomo Electric Industries Ltd. and Toyota. At the time, Toyota indicated that it wanted Advics, an electronic and foundation brake company, to gain scale to compete with the leading global brake suppliers.
Now Aisin is transferring more of its brake business because Advics can better do its job by fully owning the Aisin operations, Aisin Holdings of America CEO Kenji Tsujimura said in a statement.
The deal includes the sale of stock and property of Japan’s AS Brake Systems to Advics by April 1. In addition, Aisin’s North American arm will reassign Aisin Brake and Chassis of Terre Haute, Ind., to Advics’ branch in North America.
That transfer will take place in July, Scott Wolfe, senior manager of purchasing and corporate planning for Advics North America, said yesterday in an e-mail.
Aisin has supplied brake system components to Advics since its founding and will continue to do so, Wolfe said.
Aisin Seiki, of Kariya, ranks No. 5 on Automotive News’ list of top 100 global suppliers to automakers, with estimated sales of $20.8 billion in fiscal 2008. The company makes body systems, brakes and chassis systems, electronics and drivetrain and engine components.