It was a time of challenge, a time for change and a window of opportunity. For DENSO, a by-product of the crisis was the design and production of more efficient DENSO systems, which vaulted DENSO to the fore of the increasingly competitive global marketplace. At the same time, DENSO introduced the revolutionary kanban system of supply, in itself a measure of conservation.

Not only was DENSO exhibiting world-class technologies and producing world-class, energy-efficient systems, it also was exhibiting world-class efficiency in its methods of provision. DENSO was on the cusp of international manufacturing leadership and continuing international growth.

Europe
The pioneers of DENSO Europe needed not only to be energetic and smart, but also to be able to operate machinery on overtime. DENSO Europe’s first sales representatives often hung up their coats at the 5 p.m. whistle, rolled up their sleeves and worked through the night, carrying goods into warehouses behind the DENSO offices, with everyone taking turns operating the forklift.

The office that would later become DENSO Europe B.V. was established in 1972 on the outskirts of Amsterdam. The Netherlands was an appropriate choice, for it was the Dutch who had introduced Japanese society and culture to Europe when it opened trading with the Japanese government in the 17th century.

The initial strategy was to market DENSO oil filters for vehicles exported from Japan, and to supply windshield washer motors to Alfa Romeo, compressors to BMW, parts such as starters, magnetos and grip switches to European motorcycle manufacturers, and a starter and windshield washer motor to Ford UK.

It was DENSO Europe’s first President, Chosei Ujiie’s idea to have engineer Noboru Ikoma approach Ford UK about the DENSO starter. It was not an easy sell. Ikoma worked tirelessly to provide extensive testing and data requested by Ford. Ford was impressed with DENSO’s ability to quickly provide the requested samples and reports and decided to purchase the starter.

DENSO’s eagerness to serve and satisfy the customer not only made the sale, it became the basis for the strong, trusting bond that DENSO would forge with Ford worldwide.

It was the same with the windshield washer motors. Although DENSO’s motors already had enjoyed great success in North America, Europe’s high-speed driving conditions and harsh winters offered a different set of demands. But DENSO’s technical support was up to this challenge too, going so far as to devise a system well suited to Ford’s manufacturing process.

Always with an eye to yet another industry niche, DENSO contracted with Porsche to provide air pumps to meet higher emission standards. And in 1980 it signed a similar deal with Mercedes Benz.

These developments would lead to the establishment of DENSO Sales UK Ltd., in a suburb of London in 1984, and DENSO Automotive Deutschland GmbH in a suburb of Munich.

South America
Brazil, in 1975, marked DENSO’s first incursion into the South American market. Brazil began manufacturing automobiles in 1956, with production expanding at an incredible rate during the 1960s and 70s. By 1975, Brazil’s annual automobile production exceeded 900,000 vehicles; in 1980 it nearly equaled Spain’s annual production of more than 1.1 million vehicles.

DENSO targeted automobile air conditioner sales. The demand for air conditioned vehicles was on the rise, and DENSO worked to meet the market—and expand it—with both OEM and after-market units.

Once again, it was a complicated effort. Beset by currency problems in the late 1970s, the Brazilian government restricted the import of car air conditioners, resulting in the demise of DENSO’s initial effort. At the urging of Volkswagen and other auto industry heavyweights, DENSO re-entered the Brazilian market in 1980, setting up DENSO do Brasil Ltda. in Curitiba.

Asia/Oceania
During the mid-1960s, DENSO began developing its Asian markets, exporting mainly to the aftermarket of various Asian countries and regions. In the late 1960s, DENSO began to export technology to the Philippines and the Republic of Korea. DENSO continued its development plans even into the 1970s, when the economies of the world were shaken by a fluctuating exchange rate and the first oil crisis. It was not a time to blink. And DENSO did not. During this era, DENSO established a production and sales network throughout Thailand, Australia, Indonesia, the Republic of Korea, the Philippines and Malaysia.

Thailand
DENSO (Thailand) Co., Ltd. (DNTH) was DENSO’s first concerted attempt at establishing and operating an overseas production plant. DNTH was established in 1972 in a suburb of Bangkok as a joint venture with local companies, in accordance with Thailand’s Domestic Automobile Manufacturing Encouragement Policy. Thailand’s automobile parts industry was underdeveloped, and DNTH was Thailand’s first supplier, producing electrical components, spark plugs and car air conditioners.

As was the case in other Asian countries, DENSO associates initially lacked local sales know-how and needed to experience and master the differences in business customs and etiquette. In 1973, when DENSO Sales (Thailand) Co., Ltd., now the sales division of DNTH, was established, DENSO associates met the challenge. Nine associates traveled by car, near and far, to drum up business for the sales of spare parts, the main and initial focus of DENSO’s product line. It was difficult work, since European manufacturers dominated Thailand’s spare parts market. But as a result of the efforts of those nine DENSO associates, store by store, places agreed to be dealers.

Australia
In 1972, DENSO founded DENSO Manufacturing Australia Pty. Ltd., now a division of Australian Automotive Air Pty. Ltd., in a suburb of Melbourne, to produce heaters, radiators and air conditioners. Experience gained through the manufacturing and use of a modern mass production facility in Australia proved to be of great benefit during DENSO’s later advancement into other countries.

Indonesia
In 1975, DENSO established P.T. DENSO Indonesia Corp. in Jakarta to support Indonesia’s domestic automobile manufacturing encouragement policy. DENSO’s Indonesian partners assisted DENSO by providing executive expertise and by helping establish local sales channels. The joint venture proved another valuable experience for DENSO’s global expansion. By sharing management duties with local partners, DENSO was able to fully capitalize upon its partners’ expertise.

The Republic of Korea
In accordance with Korea’s domestic automobile manufacturing encouragement policy, Poong Sung Precision Co., Ltd., now DENSO PS Electronics Corp., was established in a suburb of Pusan in 1976. The company, a joint venture with a local technological licensee, manufactured meters and supplied them to car manufacturers in Korea.

The Philippines
That same year, DENSO set up a local company in Manila, assembling car and bus air conditioners. It later would receive recognition as a competitive manufacturer of climate-control equipment. But, unfortunately, because of a big change in the economy, the company suffered deficiencies and hard times.

Malaysia
DENSO butted up against a strict domestic manufacturing promotion policy when it attempted to establish a Malaysian manufacturing firm. But in 1980, DENSO (Malaysia) Sdn. Bhd., a joint venture, was established in a suburb of Kuala Lumpur, which began producing radiators and electrical components. DENSO later established a joint venture with Capital Industries to produce air conditioners. In late 1981, DENSO made substantial capital contributions to Malaysia’s civil car plan, an auto-manufacturing program designed to buoy the economic development of the country. DENSO received an award from the Malaysian government in recognition of its contributions to economic development.

Canada
In 1969, DENSO opened a sales office in a suburb of Toronto and began selling snowmobile starter motors and meters. It was a start that led to the establishment of DENSO Canada in 1972, now the sales division of DENSO Manufacturing Canada, Inc. It was instrumental in expanding the importing and sale of air conditioners, electrical components and diesel-related parts. And thus began the expanded growth of the Canadian market.

A global DENSO network
Today, DENSO stands among the world’s select group of automobile parts manufacturers. But we have more to accomplish. The worldwide economy is still in transition and subject to continued globalization. With the advances toward integrated North American and European markets and the continuing development of new emerging markets, competition on a worldwide scale will no doubt become fiercer.

But, backed by quality products and services developed over the past 50 years, and trusting in the DENSO spirit, we look forward to what we can do in the next 50 years.

“Proud Past, Strong Future” was the result of 18 months of research, writing and editing by Shintaro Sade of the Corporate Communications department at DENSO Corporation and former DENSO associate and Supervisor/Advisor Hideo Takeuchi. Eric Kinkopf, freelance writer, reviewed and rewrote from the English manuscript, and several DENSO associates from the United Kingdom to North America served on the editorial team.