Yorozu

Basic Information

Stock Code
7294
Industry
Transportation Equipment
Category Detail
Auto Parts
Prefecture
Kanagawa Prefecture
Establishment Year
April 1948
Listing Year
November 1991
Official Website
http://www.yorozu-corp.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Asante, EFTEC, TEIN, Ohashi Tech, Koa Shoji HD

Overview

Yorozu is a leading company in the transportation equipment industry founded in 1948, widely operating both domestically and internationally as Japan's top-share automotive suspension parts manufacturer.

Current Situation

Yorozu recorded consolidated net sales of approximately 181.5 billion yen and operating profit of approximately 4.5 billion yen in the fiscal year ended March 2024, as a global company with an overseas sales ratio of about 60%. Centering on suspension members and suspension link parts, it supplies all Japanese automakers as well as major U.S. and European automakers, maintaining top domestic share. It operates a global production system including 12 overseas bases and is advancing regional diversification. In technology development, it is strengthening product design capabilities and cost competitiveness aimed at improving suspension performance. For sustainability initiatives, it is promoting improvements to production equipment to reduce environmental impact and has outlined a medium- to long-term growth strategy toward 2030. Recently, it is focusing on improving its temporary loss-making position due to impairment impacts from China operations, with new technology development and market expansion accompanying EV proliferation as key strategic pillars. Its shareholder composition is centered on major automakers such as Renault, providing a stable foundation.

Trivia

Interesting Facts

  • Founded in 1948 as Man Automotive Industry.
  • Holds top domestic share in suspension parts.
  • Operates 25 design and production bases globally.
  • Transacts with all major Japanese automakers including Nissan.
  • U.S. Tennessee production operations ongoing since 1986.
  • Designs and manufactures diverse industrial production equipment in-house.
  • Handles agricultural machinery parts through subsidiaries.
  • Has signed collaboration agreements with Japanese EV-related municipalities.
  • Long-term supplier to multinational automakers.
  • Originally manufactured military parts at founding.

Hidden Connections

  • Founder Rokuro Shito was a former Fuji Electric engineer who transitioned from technician to entrepreneur.
  • Strong transaction ties with Nissan Motor lead to involvement as Renault shareholder.
  • Has history of capital alliance with U.S. Tower Automotive.
  • Global production network enables collaboration with local automotive industries in multiple countries.
  • Engages in technical alliances and joint development in suspension field with overseas firms in UK, France, U.S., etc.
  • Subsidiaries operate factories extensively in eastern Japan regions.
  • Some subsidiaries contribute to regional revitalization by local governments.
  • Experienced ransomware attack but has strengthened information management systems.

Future Outlook

Growth Drivers

  • Increasing demand for new products from accelerating global EV adoption
  • Enhanced market responsiveness through expansion of global production network
  • Advancing development of technologies complying with increasingly stringent automotive safety standards
  • Growing demand for environmentally considerate products aligned with sustainability
  • Product competitiveness enhancement through joint development with major customers
  • Production efficiency improvements via digital technology utilization
  • Sales expansion in emerging markets
  • Supply chain strengthening and risk diversification
  • Revenue base stabilization through diversification strategy
  • Maintaining competitiveness through strengthened management foundation

Strategic Goals

  • Expand EV parts sales to over 30% of total
  • Raise overseas sales ratio to 70%
  • Reduce CO2 emissions by 50% from 2010 levels
  • Achieve 20% production efficiency improvement through digitalization
  • Achieve 30% female managerial ratio through diversity and inclusion promotion
  • Invest 10 billion yen annually in new technology development
  • Complete optimization of global manufacturing bases
  • Strengthen supply chain sustainability
  • Expand regional social contribution programs
  • Enhance governance systems and transparency

Business Segments

Parts Supply to Automakers

Overview
Supplies major suspension parts to major automakers domestically and internationally.
Competitiveness
Stable supply system supported by high technological capabilities and extensive global manufacturing bases.
Customers
  • Nissan Motor
  • Toyota Motor
  • Honda Motor
  • Mazda
  • Suzuki
  • Isuzu Motors
  • Mitsubishi Motors
  • Daihatsu Motor
  • General Motors
  • Volkswagen
  • Ford
Products
  • Front Subframe
  • Rear Suspension Member
  • Suspension Link
  • Clutch Pedal Unit
  • Brake Pedal Unit
  • Engine Mount
  • Oil Pan

Production Equipment and Manufacturing Support Services

Overview
Designs and provides high-efficiency production equipment for in-house and customer use.
Competitiveness
Design expertise and track record accommodating diverse production needs.
Customers
  • Yorozu Group companies
  • Automotive parts manufacturers
  • Industrial machinery manufacturers
Products
  • Automated Assembly Equipment
  • Inspection Equipment
  • Jigs and Fixtures

Competitive Advantage

Strengths

  • Top-share suspension parts manufacturer in Japan
  • Global production and development bases
  • Long-term transaction relationships with diverse major automakers
  • High product design and technological capabilities
  • Stable financial base
  • Extensive product lineup
  • Strong domestic and international customer base
  • Rapid quality control system
  • In-house production capabilities across wide manufacturing processes
  • Advancing initiatives to reduce environmental impact
  • Collaboration with multinational group companies
  • Experienced management team
  • Technical support for industrial equipment manufacturing
  • Enhanced cost competitiveness
  • Improved brand recognition in overseas markets

Competitive Advantages

  • Top PC market share for all domestic automakers
  • Robust production networks in the U.S. and Asia
  • Broad product manufacturing capabilities accommodating many automakers
  • Technological strength in high-precision suspension module development
  • Development of environmentally friendly products and sustainable production systems
  • Established stable delivery management and quality assurance systems
  • Robust supply chain management
  • Production methods pursuing cost-performance of products
  • Collaborative development driven by long-term customer relationships
  • Local demand response through strategic overseas base expansion
  • Responsiveness to rapid market changes
  • Expansion of management resources through technical alliances and M&A
  • Risk diversification through diverse product portfolio
  • Strong support service system
  • Enhanced transparency and governance in management

Threats

  • Risks from fluctuations in global automotive demand
  • Uncertainties in overseas markets such as China business impairment
  • Profit pressure from intense price competition
  • Need for product lineup transformation due to EV shift
  • Supply chain disruption risks
  • Fluctuations in raw material prices
  • Currency fluctuation impacts
  • Increased production costs from regulatory tightening
  • Risk of competitiveness decline from delayed technological innovation
  • Rise of emerging companies
  • Impacts on overseas bases from geopolitical risks
  • Cybersecurity risks

Innovations

2024: Strengthening Development of EV Suspension Parts

Overview
Focusing on developing lightweight suspension parts optimized for EV vehicle characteristics.
Impact
Promotes product competitiveness enhancement and new market acquisition.

2023: Global Production Efficiency Improvement Project

Overview
Advancing automation and digitalization of domestic and overseas factories to achieve production cost reductions.
Impact
10% improvement in production efficiency, realizing cost reduction effects.

2022: Initiation of Sustainable Materials Adoption

Overview
Began introducing recycled materials into products to reduce environmental impact.
Impact
Enhances environmental responsiveness and corporate value.

2021: Development of Next-Generation Automotive Suspension Modules

Overview
Launched new products balancing lightweighting and improved durability in response to customer needs.
Impact
Strengthens technological advantages with major customers.

2020: Construction of Overseas Base Collaborative Technology Platform

Overview
Online-ized technology information sharing system with overseas factories for rapid problem resolution.
Impact
Contributes to quality improvements and shortened production lead times.

Sustainability

  • Setting CO2 emission reduction targets at production sites
  • Expanding introduction of energy-saving production equipment
  • Waste recycling rate improvement programs
  • Promoting employee environmental education
  • Strengthening environmental impact reduction across the supply chain
  • Promoting utilization of renewable energy
  • Disclosure of environmental reports and ensuring transparency
  • Formulation of green procurement guidelines
  • Diversity respect and workplace environment improvement activities
  • Collaboration with local communities on environmental conservation