Global automotive supplier Denso Corporation and electronics and ceramics company Ibiden Co have formed a capital and business alliance to jointly develop the next-generation vehicle exhaust system.
As international regulations on vehicle exhaust emissions become more strict, internal combustion engines must be more efficient and the exhaust systems improved. This capital and business alliance will enable the two companies to pool their technological strengths to speed up the development of high-performance vehicle exhaust systems for internal combustion engines, including gasoline, diesel, hybrid, and plug-in hybrid engines.
This collaboration will combine Ibiden’s strengths in high-performance ceramic materials with Denso’s expertise in developing products as systems to synergistically develop high-performance yet simple and low-cost vehicle exhaust systems.
For that end, Denso will acquire the treasury stock of Ibiden through a third-party allocation.
In addition, the two companies will consider collaboration in the area of vehicle electrification to make vehicle electrification more efficient. Denso operates production facilities in Coahuila, Nuevo Leon and Guanajuato.