Tokyo, Japan - DENSO Corporation has joined a new joint venture with Koyo Seiko Co.Ltd., Toyoda Machine Works Ltd., and Toyota Motor Corporation that will specialize in the development and sales of electric power steering and electric-hydraulic power steering (EPS) systems.

The new company, known as FAVESS Co.Ltd., concentrates the resources and technology of its four founding companies with the goal of becoming the world’s leading supplier of EPS and related products.

Compared to conventional hydraulic power steering systems, EPS helps to make vehicles more fuel efficient and easier to control, and it makes cars more environmentally friendly, a growing demand among automakers. Although initially limited to small vehicles, EPS now is being applied to midsize and larger vehicles, which will further increase demand.