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Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.

December 1, 2015

Two Group companies to be merged to strengthen steering and
propeller shaft businesses

- Acceleration of global expansion will expand sales of
both businesses by 60% by fiscal 2018 -

Tokyo, December 1, 2015 --- Hitachi Automotive Systems, Ltd. announced today that it has decided to carry out an absorption-type merger of wholly owned subsidiaries Hitachi Automotive Systems Steering, Ltd. and Hitachi Automotive Systems Kyushu, Ltd. on April 1, 2016.

Society is placing many demands on cars. For example, there is a need for cars that have reduced environmental impact, can reduce traffic accidents, eliminate or alleviate traffic congestion, improve driving comfort, and offer assisted transportation for seniors. Car manufacturers and related businesses are responding through development of technologies aimed at making autonomous driving a reality. Hitachi Automotive Systems is focusing on enhancing the ADAS (Advanced Driver Assistance Systems) technologies which will be a key part of the growth of the market for autonomous driving systems. Hitachi Automotive Systems is strengthening its businesses in a wide range of recognition, control, and drive products and systems such as outside recognition sensors, electronic control units, drive actuators, and electric powertrain components that are indispensable to ADAS.

Against this backdrop, in order to use integrated management to accelerate the global deployment of steering and propeller shaft products which are important components in drive system actuation, Hitachi Automotive Systems decided to carry out the absorption-type merger of Hitachi Automotive Systems Steering and Hitachi Automotive Systems Kyushu, which are engaged in the development and production of both products.

The power steering systems manufactured by Hitachi Automotive Systems Steering are a core product of ADAS, for which, with the inclusion of control development, unit development, and materials technology, further business expansion is expected along with that of the vertically integrated business model of the Hitachi Automotive Systems Group. In addition, Hitachi Automotive Systems Kyushu manufactures propeller shafts that are light to help save energy, and for increased collision safety use carbon fiber resulting in high-value-added products that are expected to be in growing demand in overseas markets.

In the future, Hitachi Automotive Systems' integrated management will strengthen the development capabilities and quality and production technology with respect to steering and propeller shaft products, and promote the expansion of the global production system. By strengthening sales in the Americas as well as in China and other global markets, the company is aiming for sales of steering and propeller shaft products that by fiscal 2018 will each be 60% higher than those of fiscal 2014.

Summary of companies as of December 1, 2015

1. Surviving company

1NameHitachi Automotive Systems, Ltd.
2LocationShin-Otemachi Building, 2-1, Otemachi 2-chome, Chiyoda-ku, Tokyo,
100-0004 Japan
3Name and title of
Hideaki Seki, President and COO
4Business Development, manufacture, sales and services of automotive components,
transportation related components, industrial machines and systems
5Capital15,000 million yen
6EstablishedJuly 1, 2009
7Main shareholders
and their holdings
Hitachi, Ltd. 100%

2. Disappearing companies

Merged company 1Merged company 2
1NameHitachi Automotive Systems
Steering, Ltd.
Hitachi Automotive
Systems Kyushu, Ltd.
2Location25-10 Miyako, Namegawa,
Hiki-gun, Saitama Prefecture,
355-0812 Japan
704-1 Tarumi,
Koge-machi, Chikujo-gun,
Fukuoka Prefecture,
871-0913 Japan
3Name and title of
Saburo Tsukagoshi,
Masaya Takahashi,
4Business Manufacture of steering
Manufacture of propeller
shafts and pistons
5Capital2,000 million yen500 million yen
6EstablishedJuly 2001April 2000
7Main shareholders and
their holdings
Hitachi Automotive Systems,
Ltd. 100%
Hitachi Automotive Systems,
Ltd. 100%

About Hitachi Automotive Systems, Ltd.

Hitachi Automotive Systems, Ltd. is a wholly owned subsidiary of Hitachi, Ltd., headquartered in Tokyo, Japan. The company is engaged in the development, manufacture, sales and services of automotive components, transportation related components, industrial machines and systems, and offers a wide range of automotive systems including engine management systems, electric power train systems, drive control systems and car information systems. For more information, please visit the company's website at

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