MANILA -- Aisin Seiki Co., Ltd. has gained a clear majority stake in Toyota Autoparts Philippines, Inc. (TAP) following the aquisition of additional shares from Toyota Motor Corp.
Top officials of Toyota and Aisin inked the agreement here Thursday evening.
With the signing of the deal, Aisin now holds 61 percent share in TAP; Toyota, with 34 percent share; and Toyota Motor Philippines Corp. (TMP), with only 5 percent stake.
TAP will henceforth be known as Toyota Aisin Philippines, Inc. The value of the transaction was not announced, however. “The purpose of this arrangement is to strengthen its competitiveness in the manual transmission (MT) business,” TAP President Hiroshi Fukutani said.
Fukutani also announced during the event that TAP will be investing PHP1.2 billion for a new production line for making automatic transmission (AT) components in its Sta.Rosa, Laguna plant, the first time for TAP to produce AT parts in the Philippines. The new manufacturing line is expected to have an annual production capacity of 400,000 units.
Aisin President Yasumori Ihara said the company will be maximizing the TAP’s facility in Laguna by moving the MT components production from other Asian markets like Japan and Thailand to the country. This will effectively turn the Philippines itno the export base for MT parts in the region.
Ihara added that the company is also preparing the Philippines to be part of Aisin’s booming AT business by making use of TAP’s facility, hence, the PHP1.2-billion investment for AT parts manufacturing line.
He mentioned that currently, the 90-million global car market is 50 percent MT and 50 percent AT.
“In the area of passenger car, manual transmission is rapidly replaced by automatic transmission. MT still has market of over 40 million. It will take some time before all MT will be eliminated [in the market],” the Aisin executive noted. (PNA)
