DOVER, Ohio—Sometimes, knowing your weaknesses is just as important as knowing your strengths. And if 2014 is any indication, automotive supplier Toyoda Gosei Co. Ltd. intends to strengthen its presence in all regions of the world.
Following a tour of recently-acquired Meteor Gummiwerke K.H. Badje GmbH & Co. K.G.'s automotive sealing facility in Dover, Toyoda Gosei President Tadashi Arashima reiterated the company's goal to grow its non-Toyota business to account for about half of its total sales. Arashima said Toyota Motor Corp. currently accounts for about 65 to 70 percent of the firm's sales, which it reported at about $6.39 billion for fiscal 2014 ending March 31.
“In the past, our strategy has been a bit more reactive,” Arashima said. “Now we're becoming more proactive, particularly in some of the markets where Toyota's market share is not as strong. Our investment, fixed costs, cannot be covered by only the Toyota volume. So we need to bring in non-Toyota customers as well.”
To achieve its lofty goal, North America and Europe will play large roles. About 73 percent of Toyoda Gosei's sales were generated in Asia. Japan led the way at about $2.91 billion, with the rest of Asia and Australia reporting about $1.75 billion.
North America accounted for about $1.51 billion, but sales in Europe and Africa only totaled about $217 million. Counting Meteor, its European and Africa business accounts for five of Toyoda Gosei's 64 group companies.
“We are very well situated in Japan and North America, but Europe was a little bit weak. That's why we decided to buy Meteor,” Arashima said.