Major Business Activities
We see an ever greater movement of people and goods alongside economic development, particularly in emerging countries in Asia, South America, and other regions, and demand for automobiles is expected to continue rising in these areas. In the same time, drastic changes are taking place in developed countries, mainly in Europe and America, due to technological innovations in electrification, autonomous drive and the emergence of sharing services, among other factors.
In such circumstances, the Automotive Division expects to invest 30 billion yen during the period of Medium-Term Management Plan 2020 (hereinafter “MTP 2020”). We will position the dealership business, which we expanded and gained experience in during Medium-Term Management Plan 2017 (hereinafter “MTP 2017”), as a stable earnings foundation. We will also strive to further increase the value of the business by expanding maintenance services, sale of parts and pre-owned vehicles, in addition to sale of new vehicles, along with securing outstanding new M&A in promising markets such as the US, Brazil and Japan, where we have already established a track record.
In addition to focusing on the auto financing business to promote purchases in emerging countries, we will also expand our automotive parts quality assurance business to meet the increasing demands for quality parts in the supply chain, which continues to diversify across nations. While strengthening these functions and accumulating business know-how, we will also strive for stable growth by replacing and enhancing assets in view of market changes for our existing businesses as well.
The Automotive Division manages 35 operating companies across the world with about 4,900 employees, including personnel recruited locally. In its efforts to strive for steady growth for these operating companies, the division is constantly developing next-generation management personnel by having them accumulate on-site experience while contributing to the development of the region. Aside from training of managers, MTP 2020 will also work on developing personnel capable of creating new functions and businesses that cater to changes in the automobile industry.
Business models supporting value creation
Examples of Activities for Sustained Growth
Developing dealership businesses with high added value, which provide services rooted in the region
As automobiles become more precise and more sophisticated in their functions, dealers are under greater expectations than ever before to possess high levels of knowledge and improve their services to provide detailed responses to user needs. Sojitz will conduct its dealership business in various regions of the world, based on the highly profitable business model it has developed through high-level after-sales services and sale of pre-owned vehicles.
In the dealership industry, which comprises many sole proprietorships, Sojitz will act as a successor and place managers who have abundant experience in corporate management. It will adopt management policies that respect the Company’s culture and promote high-value-added business operations rooted in the region. We will also add further value through a synergy with Sojitz’s management know-how.
Automotive Parts Quality Assurance Business
Parts quality assurance business to support the global supply chain
Quality assurance is becoming increasingly important as companies strive to optimize costs and quality, expand supply chains beyond national boundaries, and modularize automotive parts. In this environment, Sojitz along with Green Tec Corporation, the largest automotive quality assurance provider in Japan, jointly acquired full management rights to Stratosphere Quality LLC (Indiana), the largest quality assurance company in the U.S. We will maintain the company’s stable earnings structure, harnessing the roughly 3,000- company strong customer base Stratosphere Quality possesses in North America, while not only striving to expand operations in the Americas, but to develop into Europe and Asia as well.
Nurturing next-generation management talent and business development personnel by giving them experience in management of operating companies
The Automotive Division comprises 35 companies around the world and about 4,900 employees, including personnel recruited locally. It is becoming increasingly important to produce the kind of next-generation management talent which have on-site experience, obtained while contributing to the region’s development, expansion of employment opportunities, and training of human resources. The Automotive Division has, therefore, introduced a unique talent development program for personnel of all age groups, which aims to accelerate training of employees by actively promoting and assigning people across businesses and national borders. For MTP 2020, we are also focusing on training of business development personnel in addition to developing management talent. We aim to develop personnel who can contribute to society by producing new functions and businesses in response to electronization, automation and other changes in the automotive industry.
Automobile World Congress participants
- Automotive Division
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