DENSO to transfer operations of select ICE business to Niterra
DENSO Corporation, a global automotive components manufacturer headquartered in the city of Kariya, Aichi Prefecture, Japan, will transfer selected internal combustion engine parts operations to Niterra Co., Ltd., following the signing of a memorandum of understanding (MoU). The two parties reached a decision to sign the MOU during a board of directors meeting on July 10, 2023.
Electrification is picking up pace throughout the auto industry. At the same time, the auto industry is working to further evolve internal combustion engines, taking into account differences in energy situations and fuels used in each region and country.
Under these circumstances, the automotive parts industry is expected to work to develop products for electric vehicles, while at the same time maintaining the competitiveness of the industry as a whole through various means, including promoting business integration for products for internal combustion whose market is expected to shrink in the future.
In view of these factors, DENSO has concluded MOU to transfer the business operations for its Spark Plug and Exhaust Gas Sensor products (Oxygen Sensor and Air-Fuel Ratio Sensor) to Niterra Co., Ltd. Niterra Co., Ltd., formerly NGK SPARK PLUG Co., Ltd., headquartered in Nagoya, Japan, boasts some of the world’s leading technologies in its field.
By transferring operations related to these core internal-combustion-engine products to Niterra, DENSO aims to enhance the product appeal of internal combustion engines parts by combining technologies and manufacturing capabilities.
In addition, DENSO will accelerate the development of products for electric vehicles in preparation for full-scale electrification. It will also work on the development of energy management systems which will become increasingly important for electric vehicles.
Through these efforts, DENSO hopes to offer products that are appealing to customers in terms of both performance and price in the entire automotive market, including internal combustion engines and electric vehicles, and contribute to the early realisation of a carbon-neutral society.