Establishment of a Business Planning Project

「The newly established Sales Engineering Department, which integrates the sales and technology development functions, will accurately identify customer needs and pursue faster value propositions. The newly established Strategic Planning Department will identify domestic and overseas market needs over the medium to long term, strengthen coordination among the sales functions of domestic and overseas subsidiaries, optimize the allocation of technology development resources and maximize operational efficiency, while promoting coordination among organizations during the planning and execution phases of strategic direction.」

「Accordingly, we are changing the organizational structure from the previous function-based headquarters structure to a business-unit structure. We are establishing the Parts Manufacturing Business Unit, responsible for the existing automotive parts manufacturing business, and the Solutions Business Unit, responsible for accelerating commercialization and creating new value. Together with the Mobility Business Unit, which covers the existing automotive sales business, this will create a three-business-unit structure. The reporting segments will likewise be changed to business segments.」

「Accordingly, we changed the organizational structure from a function-based headquarters system to a business division system, establishing the Parts Manufacturing Business Division, responsible for the existing automotive parts manufacturing business, and the Solutions Business Division, responsible for accelerating commercialization and creating new value. We will add the existing automotive sales business, the Mobility Business Division, to these two divisions, creating a three-business-division structure.」

「Under the organizational structure, the Production Reform Project and Production Operations Department within the Production Headquarters will rebuild the production structure in existing business areas and strengthen the earnings base. In addition, the Business Development Department within the Functional Headquarters, which leads the creation of next-generation value, will promote initiatives related to the evolution of automobiles and fields beyond automobiles.」

「We aim to give concrete form to an Ecosystem Concept that generates revenue efficiently through the circulation of digital information, and in October 2017 established T-IReC as a specialized organization to promote it, while」

「We established the Corporate Strategy Division within the newly created Functional Headquarters as an organization for considering the creation of new value.」

「To serve as an organization promoting initiatives for a new business strategy in anticipation of the next medium-term business plan and the realization of a domestic compact factory concept, we established a specialized project team, the Business Planning Project, comprising experts in sales (S), manufacturing (E), research and development (D), and procurement (B), beginning in the fiscal year ending March 2017, and will further accelerate its activities.」