Mitsubishi Electric Corporation and Robert Bosch GmbH Have Agreed to Dissolve Nippon Injector Corporation

Rhea-AI Summary

Mitsubishi Electric and Robert Bosch have decided to terminate their joint venture, Nippon Injector Corporation, by the end of 2025. This decision is driven by the anticipated decline in demand for fuel injectors due to the automotive industry's shift towards electrification. Starting 2023, production of gasoline fuel injectors will gradually shift to Bosch's facility in Hemaraj, Thailand, pending necessary approvals. Mitsubishi Electric aims to secure supplies from this factory for future needs.

Positive

• Mitsubishi Electric will continue to receive supplies from Bosch's main manufacturing site in Asia, ensuring future production capabilities.

Negative

• Termination of the joint venture may lead to job losses and uncertainty for employees at Nippon Injector Corporation.
• Shift in production to Bosch's Thailand facility indicates a strategic retreat from Japan's domestic manufacturing.

TOKYO--(BUSINESS WIRE)-- Mitsubishi Electric Corporation and Robert Bosch GmbH have agreed to terminate operations of their joint venture, Nippon Injector Corporation by the end of 2025 and subsequently dissolve the company and complete the liquidation.

Due to the impact of the technological shift towards electrification in the automotive industry, it is estimated that the demand for fuel injectors for combustion engines will be declining in the future. In order to cope with this market development and to optimize manufacturing, it is intended to transfer production of gasoline fuel injectors step-by-step to Bosch’s manufacturing location in Hemaraj, Thailand (Robert Bosch Automotive Technologies) starting 2023, subject to approvals from the antitrust authorities within the relevant countries if applicable.

Mitsubishi Electric intends to receive supplies from Bosch’s Hemaraj factory which is expected to be the main factory in Asia for port fuel injectors for gasoline engines in the future.

Nippon Injector has already explained the decision to its labor union and employees. The company will start discussions with its labor union on measures, under coordination with Mitsubishi Electric and Bosch to support associates toward further employment.

Nippon Injector was established in 1986 and has been supplying more than 300 million gasoline fuel injectors for various OE customers in Japan and abroad. Through those activities, it has been contributing to the spread of internal combustion engines that reduce environmental impact, with better fuel efficiency and less emissions.

For the full text, please visit: www.MitsubishiElectric.com/news/

View source version on businesswire.com: https://www.businesswire.com/news/home/20220901005273/en/

Media Inquiries

Mitsubishi Electric Corporation

Takeyoshi Komatsu

Public Relations Division

Mitsubishi Electric Corporation

Tel: +81-3-3218-2346

prd.gnews@nk.MitsubishiElectric.co.jp

Robert Bosch GmbH

Bosch Corporation, Corporate Communications Department

Phone: +81 3 5485-3393

Source: Mitsubishi Electric Corporation

FAQ

What is the reason for terminating the Nippon Injector Corporation joint venture?

The termination is due to the anticipated decline in demand for fuel injectors as the automotive industry shifts towards electrification.

When will the Nippon Injector Corporation be dissolved?

The joint venture is set to be terminated and dissolved by the end of 2025.

Where will the production of gasoline fuel injectors be transferred?

Production will be gradually transferred to Bosch's manufacturing facility in Hemaraj, Thailand, starting in 2023.

How will Mitsubishi Electric secure supply after the joint venture ends?

Mitsubishi Electric plans to receive supplies from Bosch's Hemaraj factory, which is expected to become the main factory in Asia for port fuel injectors.

What impact will the termination of the joint venture have on employees?

The company will discuss measures with its labor union to support associates toward further employment during the transition.