Business Overview and Vision

Aiming to create advanced functions and added value in the global automotive value chain

Strengths That Drive Value Creation

Strategies and Initiatives

In the rapidly changing global operating environment, we believe that our traditional business model is insufficient for the division to continue to create value. Therefore, we view Medium-term Management Plan 2017 as a transition toward the next step, and are undertaking business innovations.

In these circumstances, we have mapped out “Three Key Strategies” as our value creation model. The first is the assembly/wholesale business, the division’s core earnings driver, which has the asset of many years of experience in managing operating companies. In addition to generating core earnings, this business also serves the function of developing management talent, a key competitive advantage of the division. We will work to improve and expand that function while enhancing the division’s strengths.

The second strategy is dealership businesses. During the current medium-term management plan, we are focusing on expanding our business scale and earnings through aggressive investment in dealership businesses, including mergers and acquisitions.

The third strategy is future strategies, with a view to the next medium-term management plan. We will invest the appropriate resources in new businesses to build new business models. For example, in the Philippines, where we have a strong business foundation and many years of experience in the assembly/wholesale business, we have launched an auto financing company that works closely with consumers, and will provide high-value added services.

Expansion of the global automotive industry is expected to continue. While there are many business opportunities, competition is fierce, so the challenge is determining how to capitalize on market growth.

Focus Area: Assembly/Wholesale Business

Further refining our strong business model to expand regionally

In addition to steady growth in Puerto Rico and Thailand, the Automotive Division has a solid market presence in Russia, the Philippines and other countries. While we will continue to strengthen business in these regions, we are also developing new markets and new businesses. One such new market is Myanmar, where we have begun sales of automobiles from a Chinese manufacturer. We will continue to pursue expansion in regions with strong growth potential.

Focus Area: Dealership Business

Expanding our high-value-added business in the United States to new regions

In the dealership business, we have a track record of around 30 years in California, where we currently own four BMW and MINI franchises. With a highly profitable business model, these dealerships are distinguished by their pre-owned vehicle sales and after-sales service. In 2015, we acquired a BMW and MINI dealership in Brazil that covers all of Santa Catarina, one of the country’s wealthiest states, targeting the large potential of its high-end automotive demand. Using our U.S. business model, we will focus on expanding earnings as we continue to seek promising investment opportunities and growth in new regions not limited to developed countries.