Toyoda Gosei targets 'strategic growth' with innovation, mobility

KIYOSU, Japan—Toyoda Gosei Co. Ltd. is targeting "strategic growth areas" with a three-pillared business plan involving innovation in products and manufacturing.

The first pillar of the strategy, according the Japanese group's medium- to long-term plan, is "venturing into innovation and actions for new mobility."

Here, the group will focus on the early formation of businesses in fields that are new to the group using "revolutionary technologies," said the automotive supplier in its full year financial results published last month.

For instance, the group said it was working on "safe and secure mobility" as it expected vehicle collision safety assessments to become stricter in North America and other countries.

The manufacturer said it developed "new-construction driver-side airbags," which protect the head and trunk of drivers in the event of diagonal collisions. The product, it said, is incorporated into Honda Motor Co.'s new Civic models.

The group's pedestrian protection airbag, which protects pedestrians in the event of traffic accidents, is also incorporated into Subaru's latest Legacy Outback models.

In addition to automotive innovations, Toyoda Gosei said it will increase focus on its "next-generation rubber," which it calls e-Rubber, that moves using electricity.

The group said it developed "FeelSole," a smart insole with a sensor function that allows users to collect data on the pressure under their feet while exercising.

The company has begun shipping samples to golf schools operated by Mizuno Corp., it said.

The second pillar of group activities is "key strategies for growing markets and fields with growth potential."

Here, Toyoda Gosei said it has been taking steps to strengthen its safety-system operations as one of its mainstay fields.

To this end, the group entered an operating and capital partnership last year with Ashimori Industry Co. Ltd., a Japanese manufacturer of firefighting hoses and automotive safety products.

The two organizations are collaborating to leverage their operating assets and expertise to expand their combined development capability and product-competitiveness.

The partners, said Toyoda Gosei, aim to advance the development of airbag and seatbelt systems, as well as "next-generation safety systems" for EVs and self-driving vehicles.

Toyoda-Gosei's third pillar of activity will focus on "innovative manufacturing at production sites."

Here, the group said it was promoting the development of smart production sites to support sustainable growth of the group.

As part of this plan, looking to the future, the company said its plants will be clean, carbon-free production sites, "where anyone can work actively" with the aim to have "zero accidents and zero complaints."

The group also is working to increase productivity through the introduction of collaborative robots as well as IoT systems that centrally manage production process.

The growth strategy is part of Toyoda Gosie's latest attempts to improve profitability, following the "severe conditions" of 2021—including the pandemic, semiconductor shortages and a raw material supply crisis that prompted a series of "rationalization" of expenses.

In 2021, the Japanese group reported a 15-percent year-on-year rise in revenue to $6.1 billion.

Toyoda Gosei linked the rise in sales to a recovery in automotive production following the COVID-19 decline despite a slowdown in manufacturing due to semiconductor shortages.

Operating profit, however, decreased 6.3 percent to $252 million, and profit attributable to owners of parent decreased 33.7 percent to $172 million, mainly due to rising raw material prices and cost burdens.