IAT Joint Venturing with Global Wiring Harness Leader Yazaki

Source: Author: Date:2024-03-12 Read:157

On February 8, IAT and Yazaki (China) Investment Co., Ltd. (Yazaki Group China headquarters, hereinafter referred to as Yazaki China) signed an LOI. Both sides intend to set up a joint venture company, through the strong combination of synergistic innovation. 

First of all, they will jointly carry out the new energy automobile industry high-voltage electrical system core technology research. Through the core technology of joint research and development and the global sales network joint actions, the new JV can further capture the global market share of high-voltage electrical systems.

Yazaki Group, with a history of more than 80 years, is the wiring harness manufacturer with the highest market share in the world. It has nearly 500 factories or branches in 45 countries or regions around the world and more than 240,000 employees. The group owns a global sales network that almost supplies to all large automobile manufacturers. The group has been listed on the world's top 500 board for many times. Yazaki China is the Chinese headquarters of Yazaki Group. 

Since its foundation over 80 years ago, this is the second time to join hands with a Chinese enterprise for establishing a JV organization. Rounds of negotiation were made over a year for the cooperation and the positive conclusion shows historic and decisive strategic significance for the development of both Parties.

Different from the common letter of intent, both Parties specified many items for this cooperation:

First of all, regarding the direction of cooperation, the two sides agreed to focus on the high-voltage power system domain in the early phase of cooperation, in order to fully explore the potential of the two sides in the global market by showcasing years of accumulation in technology, products and market advantages, where the two can provide in-depth solutions to the NEV power efficiency, range anxiety and other related global technical pain points.

Second, about the timing plan, the two Parties have made it clear in the LOI that the registration of the joint venture company will be completed within six months from the date of LOI sign-off and the company location should be in the first-tier cities in China where talents are concentrate.

Foremost, in order to promote this cooperation with high quality and fast pace, seven core management members from Yazaki Group, Yazaki China, and IAT have formed a joint special taskforce. Mr. Xuan Qimu, Chairman of IAT, is the top leader of the taskforce team, and other six executives, Mr. Hara Kawakai and Mr. Kanda Hidenori of the Yazaki Group, Supervisors, Mr. Rohjyu Yagui and Mr. Nambu Tomohisa of Yazaki China, Vice General Managers, and Mr. Zhang Le and Mr. Wei Xinzhu, Vice Presidents of IAT, the Vice Leaders of the team. 

The special taskforce composed of seven core executives represents the decision-making opinions of the highest level from both Parties. Such organization also implies the unprecedented importance attached to this cooperation between the two sides.

The high-voltage electrical system that the two Parties intend to cooperate is the core part of new energy vehicles, which mainly includes power battery system, drive system, charging and distribution system, and its wiring harness system etc. In the future, both Parties will build a perspective R&D team based on their respective technological advantages to jointly overcome the core technological challenges related to high-voltage electrical systems required by the new energy automobile industry, and provide system solutions for the customers.

In the future, the JV company will take advantage of the existing global sales network of the two Parties to rapidly build up its own sales system, and gradually build a high-tech innovation enterprise with full competitiveness in the global new energy automobile market. The JV aims to take lead in the field of high-voltage electrical system products with, high commonality and cost-effective strengths. The new company will also aspire to continue to lead the automotive industry in technological change in the field of high-voltage electrical systems.

The steady development of the new joint venture will be conducive to IAT for further deepening its automotive intelligence business deployment. Such actions are helpful for providing more core, high-quality and comprehensive services to OEMs, and increasing the cooperation level amid the JV owners, their customers and industry chain enterprises. 

This cooperation is also a part of IAT's "Technology + Industry Chain" overseas strategy. Based on the cooperation between the two Parties, Yazaki Group will also promote the company's solutions of core components and vehicle R&D to go global, and enhance IAT’s unique, three-dimensional and synergistic "R&D+Manufacturing+Commercial" business mode.

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