F O C U S

3Car Air-Conditioning Compressor Business — Establishinga Global Presence with Advanced Technologies
The production of car air-conditioning compressors is a key
strategic business not only of the Automobile Segment but
also of Toyota Industries itself. Making full use of our cuttingedge technologies, we develop and manufacture products
attuned to customer needs, leading the global car airconditioning compressor market.

Technological Superiority Beating
the Competition
With technology and overall quality that competitors cannot
match, Toyota Industries’ car air-conditioning compressors are
the preferred choice not only of Toyota Motor Corporation(“TMC”) but also of many of the world’s major car
manufacturers.
Toyota Industries’ Car Air-Conditioning Compressorof competitors. For example, in the 1980s we launched ourBusiness has made an important contribution to innovation incompact, lightweight 10-cylinder compressor with swash

the automobile field. We anticipate changes in market needs

plate and fixed displacement, which is extremely reliable ataccurately and develop products to meet those needs aheadhigh operating speeds. In the 1990s, in response to increased

Automobile Trends and Toyota Industries’ Product Development1980s

1990s

2000s

Provide higher engine performance and comfortable interior
Slow down global warming

Reduce ozone layer destruction

Automobile
trends

Improve gas mileage
Hybrid cars, fuel-cell hybrid vehicles
Reliability at high speed, quiet operation
Compact, lightweight, power efficientCompressor
needs

Ultra-lightweight, ultra-power efficient
Reducing CFCs

Replacing CFCs

Lower jolt turning air conditioners ON/OFF Superb acceleration
Fixed displacement type

ToyotaIndustries’
product
development

1981
Compact, lightweight
10-cylinder swash
plate compressor

Use of HFC-134a refrigerant
Power efficient, 1995superb acceleration
7-cylinder one-way
swash plate compressor

World’s first commercial products

Variabledisplacement
type

External signal-controlled, variable displacement,
clutchless type1997

Ultra-lightweight,
ultra-power efficient,superb acceleration
6-cylinder one-way
swash plate compressor

Electric compressor
2002

CO2 compressor

CFC-freeCO2 compressor for fuel-cell hybrid vehicles

TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2003

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F O C U S

3Worldwide Manufacturing Bases and Local Offices

TDDK
Munich
DNTS
MACIDetroit
ACTIS

DWHI
YSD
SUBROSDNIA

DNBRConsolidated subsidiaries
Licensed manufacturers
Local offices

environmental concerns, we launched a one-way swash plate

Strong Global Presencecompressor with continuous variable displacement, which

We hold a leading share in the global car air-conditioning

increases fuel efficiency by reducing the load on the engine.

compressor market, producing more than 15 million units a

In the late 1990s, we introduced a clutchless type one-way

year at our facilities around the world.

swash plate compressor with continuous variable

Over the years, Toyota Industries has globalized its

displacement, which senses changes in external ambience

production, establishing a tri-polar production network withsuch as ambient temperature and engine acceleration,bases in all the major automobile markets, i.e., Europe, the U.S.

offering both excellent acceleration and lower energy

and Japan. We also license production in Asia (excludingconsumption.

Japan) and South America. Local production allows theIn the near future, electric vehicles are expected to become

manufacture of products that accurately reflect local needs,

more popular, leading to increased demand for electric

while at the same time reducing shipment costs andcompressors. Toyota Industries is undertaking substantial

exchange rate risks. Local procurement is increasing, and will

research and development in this field. To protect the ozone

continue to increase for the foreseeable future.

layer and slow down global warming, we developed jointly

Our U.S. production base, Michigan Automotivewith DENSO Corporation (“DENSO”) a car air-conditioning

Compressor, Inc. (“MACI”)*, produced over 5.4 million swash

compressor that uses CO2, instead of hydrofluorocarbon

plate compressors with fixed displacement in 2002. Our(HFC), as a refrigerant. This compressor is incorporated in theEuropean production base, TD Deutsche Klimakompressor

fuel-cell hybrid vehicles developed by TMC, which wereGmbH (“TDDK”)*, produced approximately 0.7 million swash

delivered to the Japanese government in December 2002.

plate compressors with variable displacement in 2002.

Toyota Industries is currently engaged in the research andIn fiscal 2003, Toyota Industries was the leading player indevelopment of a CO2 compressor for more common, engine-

the Japanese market, supplying more than 5 million units todriven vehicles.

major car manufacturers, including TMC. The total supplied toAmerican automakers and Japanese manufacturers
producing in North America was over 5.5 million units(including exports from Japan and local production), mainly26

TOYOTA INDUSTRIES CORPORATIONANNUAL REPORT 2003

fixed displacement compressors.

Entering the Aftermarket

In Europe, Toyota Industries supplied over 4.6 million units

In July 2001, Toyota Industries established ACTIS(including exports from Japan and local production),

Manufacturing, Ltd. LLC (“ACTIS”) in Grapevine, Texas, as a joint

including variable displacement compressors for luxury cars

venture with DENSO and Toyota Tsusho Corporation. ACTIS, aand compact variable displacement compressors for smaller

remanufacturer of car air-conditioning compressors for thecars. Despite uncertain prospects for automobile sales

North American market, started production in March 2002.

triggered by an economic slowdown in the U.S., our medium-The company was created to cope with the rising demand forterm focus is on North America and Europe. In North America,

remanufactured compressors, itself a response to social andwe will seek new orders aggressively. In Europe, the potential

environmental needs for more efficient utilization offor higher sales is vast as the proportion of cars fitted with car

automotive part resources. Making full use of our long-air-conditioners is expected to keep increasing for theaccumulated know-how in production technologies andforeseeable future. In Europe, we will vigorously cultivate new

quality control, ACTIS intends to reinforce competitiveness incustomers by rapidly developing and launching products

the North American aftermarket for remanufactured

closely tailored to local needs, such as the compact variable

compressors. ACTIS expects sales of 100,000 units in 2003 anddisplacement compressor.

120,000 units in 2004.

All our car air-conditioning compressors are supplied toIn February 2002, TDDK also commenced theDENSO, which then sells them to major automakers

remanufacture of car air-conditioning compressors in theworldwide. Our compressors are also incorporated in DENSO’s

European market.

car air-conditioning systems.
* MACI and TDDK are joint ventures with DENSO. As of March 31, 2003, Toyota
Industries held 60% and 65%, respectively, of the shares of these companies.
The fiscal years of MACI and TDDK, unlike that of Toyota Industries, run fromJanuary 1 to December 31.

Remanufactured Car Air-Conditioning Compressors
In the U.S. and Europe, demand is increasing forreconditioned or remanufactured components, reflecting
social and environmental needs for more efficientutilization of automotive part resources. In response tothis trend, ACTIS in North America and TDDK in Europe
have begun remanufacturing car air-conditioning
Remanufacturedcompressors

compressors. The two companies disassemble usedcompressors collected from the market, replace worn parts
with new ones, then reassemble the units.
Toyota Industries is committed to making a contribution
to resource conservation by increasing the number ofremanufactured products it sells in the future.

DeliveryRemanufacturing

Reassembly

Cardealers
User

Replaceparts

Autorepairshops

Parts inspection

DisassemblyCollection(of used compressors)

Used compressors are collected from car dealers and auto repair shops,
then remanufactured at ACTIS and TDDK for resale.

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