Focus

5Car Air-Conditioning Compressor Business —Establishing a Global Presence with Advanced Technologies
The production of car air-conditioning compressors is a core

Toyota Industries has made an important contribution tobusiness not only of the Automobile Segment but also ofinnovation in the automobile field. We anticipate changes in

Toyota Industries itself. Making full use of our cutting-edge

market needs accurately and develop products to meet thosetechnologies, we develop and manufacture products thatneeds ahead of competitors. For example, in the 1980s wemeet the needs of each local market throughout the world.

launched our compact, lightweight 10-cylinder compressor
with swash plate and fixed displacement, which is extremely
reliable at high operating speeds. In the 1990s, in response toincreased environmental concerns, we launched a one-way
swash plate compressor with continuous variabledisplacement, which increases fuel efficiency by reducing theload on the engine. In the late 1990s, we introduced an
external signal-controlled compressor with one-way swash
plate and continuous variable displacement, which offers
both excellent acceleration and lower energy consumption.
In the near future, electric vehicles are expected to become
more popular, leading to increased demand for electriccompressors. Toyota Industries is undertaking substantial
research and development in this field. We are also conducting

Technological Superiority Beating
the Competition

extensive research into new products. These include a car airconditioning compressor that uses CO2 as a refrigerant.

Toyota Industries’ car air-conditioning compressors are thepreferred choice not only of Toyota Motor Corporation

Strong Global Presence(“TMC”) but also of many other of the world’s major carWe hold a leading share in the global car air-conditioningmanufacturers. Competitors cannot match them in terms ofcompressor market, producing more than 13 million units atechnology and overall quality.

year at our facilities around the world.

Worldwide Manufacturing Bases and Local Offices
TDDK
MunichDNTS
MACI

Detroit
ACTIS

DWHI
YSD
SUBROSDNIA
DNBRConsolidated subsidiaries
Licensed manufacturers
Local offices

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TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2002

Production Integration andthe Aftermarket
In May 2001, in order to enhance mutual international
competitiveness, Toyota Industries and DENSO Corporation(“DENSO”) agreed to integrate their production of car airconditioning compressors. Toyota Industries now takes thelead in product development and manufacturing, whileDENSO focuses on sales while also undertaking limited
manufacturing operations. Toyota Industries is now taking
Over the years, Toyota Industries has globalized its

over production of car air-conditioning compressors atproduction, establishing a tri-polar production network with

DENSO’s Toyohashi Plant in Japan. Overseas, production willbases in all the major automobile markets, i.e., Europe, the U.S.

be shared between the two companies on a country-by-and Japan. We also license production in Asia (excluding

country basis. As has always been the case, all our car air-Japan) and South America. Local production allows theconditioning compressors will be supplied to DENSO, which

manufacture of products that accurately reflect local needs,

will then sell them to major automakers worldwide. Our

while at the same time reducing shipment costs andcompressors are also incorporated in DENSO’s car air-exchange rate risks. Local procurement is increasing, and willconditioning systems.

continue to increase for the foreseeable future.
Our U.S. production base, Michigan Automotive Compressor,In July 2001, Toyota Industries established ACTISManufacturing, Ltd. LLC (“ACTIS”) in Grapevine, Texas, as a joint

Inc. (“MACI”)*, sold over 4.4 million swash plate compressors

venture with DENSO and Toyota Tsusho Corporation. ACTIS, awith fixed displacement in 2001. Our European production

remanufacturer of car air-base, TD Deutsche Klimakompressor GmbH (“TDDK”)*,

conditioning compressors for

produced approximately 0.7 million swash plate compressors

the North American market,with variable displacement in 2001.

started production in MarchIn fiscal 2002, Toyota Industries was the leading player in2002. The company wasthe Japanese market, selling more than 5 million units tocreated to cope with themajor car manufacturers, including TMC. Sales to American

rising demand forautomakers and Japanese manufacturers producing in North

remanufactured compressors,

America totaled over 4.5 million units (including exports anditself a response to social andlocal production), mainly fixed displacement compressors.

environmental needs for more efficient utilization ofIn Europe, Toyota Industries sold over 4.1 million unitsautomotive part resources. Making full use of our long-(including exports and local production), including variable

accumulated know-how in production technologies anddisplacement compressors for luxury cars and compact

quality control, ACTIS intends to reinforce competitiveness invariable displacement compressors for smaller cars.

the North American aftermarket for remanufactured

Despite uncertain prospects for automobile sales triggered bycompressors. In June 2002, the compressor remanufacturing

an economic slowdown in the U.S., our medium-term focus isbusiness of American Industrial Manufacturing Services, Inc.

on North America and Europe. In North America, we will seek(“AIMS”), a DENSO subsidiary, was integrated into ACTIS.

new orders aggressively. In Europe, the potential for sales is

ACTIS Manufacturing, Ltd. LLC

In February 2002, TDDK also commenced thevast as the proportion of cars fitted with car air-conditioners isremanufacture of car air-conditioning compressors in theexpected to increase significantly. We will vigorously cultivate

European market.

new customers by rapidly developing and launching products
tailored to European needs, such as the compact variabledisplacement compressor.

* MACI and TDDK are joint ventures with DENSO Corporation. As of March 31,
2002, Toyota Industries held 60% and 65%, respectively, of the shares of thesecompanies. The fiscal years of MACI and TDDK, unlike that of Toyota
Industries, run from January 1 to December 31.

TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2002

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