"Leading the Way" Annual Report 2006
Index > Review of Operations by Segment
Review of Operations by Segment
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Automotive
Powertrain Control Systems
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High Flow Variable Force Solenoid

Main Products

[Engine Control Components]
Ignition coils, Magnetos, Spark plugs, Glow plugs, Exhaust gas sensors, Ceramic substrates, Diesel Particulate Filters (DPFs)

[System Control Components]
Valves (Exhaust gas recirculation (EGR) valves, Automatic transmission (AT) control valves, AT solenoid valves, and others), Canisters, Knock sensors, Accelerator sensors, Variable cam timing (VCT) components, Throttle bodies, Air flow meters, Oil filters, Air cleaners, Integrated air fuel modules, Shift-bywire actuators, Horns

[Fuel Injection Products]
Diesel engine-related components (Common rail systems, In-line fuel injection pumps, Rotary fuel injection pumps, Nozzles, and others), Gasoline engine-related components (Fuel pumps, Fuel pump modules, Fuel filters, Fuel injectors, and others)

Overview

DENSO reorganized this business group in the year under review to put a stronger emphasis on gasoline and diesel engine management systems and components. Powertrain Control Systems now consists of the Fuel Injection Product Division, Engine Control Components Division, and System Control Components Division. The Electric Hybrid Vehicle (EHV) Components Product Division was transferred to the Electric Systems Business Group.

On the supply front, in April 2005, DENSO established oil filter producer Toyota Boshoku Foshan Co., Ltd. as a joint venture with Toyota Boshoku Corporation in Foshan, China. The Company also boosted production capacity for gasoline fuel injectors by adding capacity at production sites in Japan, North America, Hungary and China. Production capacity for fuel pump modules and VCT components was also increased in Japan.

In terms of moves to increase sales, DENSO began delivering diesel common rail systems to Ford of Europe, a division of the Ford Motor Company, as well as diesel electronic throttle bodies to Mazda Motor Corporation, Mitsubishi Motors Corporation and Nissan Motor Co., Ltd.

New products launched included a high flow variable force solenoid for automatic transmissions that enables direct control of clutch pressure.

As a result of the foregoing, sales of ballasts, igniters and other engine control components, as well as common rail systems and other diesel injection components increased, resulting in segment sales of ¥766.9 billion, an increase of 18.7% year on year.

Perspective

Gasoline engine-related systems and components
Exhaust emissions from port fuel injection (PFI) engines are already purified to levels common in the atmosphere. One outstanding issue going forward remains the extent to which improved fuel efficiency can help to lower CO² emissions. To this end, DENSO is promoting the development of products compatible with direct injection engines, which contribute to improved fuel efficiency.

Diesel engine-related systems and components
Diesel vehicles make up roughly 50% of the market in Europe. Due to this high percentage, stronger voluntary regulatory actions to restrict CO² emissions and tighter emissions than the Euro5 standards are anticipated going forward. In North America, while stricter Corporate Average Fuel Economy (CAFE) standards may herald a shift to diesel engines, particularly for SUVs, one issue on the horizon is compliance with Tier 2 Bin 5 emissions regulations. In Japan, regulations that may set diesel engine particulate matter (PM) emission standards at the same level as those for gasoline engines are expected to be adopted in either 2009 or 2010. Consequently, this prospect is generating a greater need for diesel particulate filters (DPFs) and other PM countermeasures. DENSO is responding by developing high-pressure fuel injection (2,000-bar) technology, precision fuel injection technology and sensors for auxiliary control. The dual aim here is to reduce exhaust gas emissions and create systems that contain total costs by simplifying after-treatment processes. DENSO is developing various after-treatment systems for exhaust gas, including cordierite-based DPFs, lean NOx traps (LNTs), and urea selective catalytic reduction (SCR) systems.

Notes:
  1. DENSO reorganized its business groups on January 1, 2006. Net sales by product in the above table reflect segment classifications used in the previous fiscal year, while main products are shown in accordance with new segment classifications.
  2. In addition to the above, the Other business segment recorded net sales of ¥115,832 million, ¥87,433 million, ¥87,989 million, ¥92,908 million, and ¥91,986 million in the years ended March 31, 2002, 2003, 2004, 2005 and 2006, respectively.
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