August 3, 1999
Nissan Motor Co., Ltd.
TransTechnology Ltd.
JATCO Corporation
Agreement Reached for Merger Between TransTechnology and JATCO, Affiliates of Nissan Motor Co., Ltd.
Tokyo...Today a basic agreement was reached between TransTechnology Ltd. and JATCO Corp., both Nissan affiliates. Based on this agreement, the two companies are scheduled to merge on October 1, 1999.
TransTechnology was established in June as a separate independent company composed of Nissan's Fuji plant and its automatic transmission (A/T) and continuously variable transmission (CVT) development divisions, and develops A/T and CVT, manufactures A/T and CVT for FWD (Front-Wheel Drive) vehicles. TransTechnology was established as the central pillar in reorganizing and strengthening business operations with a view to increasing the efficiency of A/T, including CVT, development and production within the Nissan Group, and to serve as part of the efforts to expand global sales.
JATCO was established in 1970 to manufacture and sell A/T. It has been growing by increasing sales of A/T units to many automobile manufacturers both in Japan and overseas, and it is a system supplier covering A/T development through sales.
In the future, A/T is expected to develop into a new technology to improve fuel efficiency as part of a broader approach to environmental issues, with the prospect of projected technological advances, such as CVT and multi-speed A/T. Furthermore, demand for A/T in the year 2005 is expected to expand by approximately 3-4 million units annually, compared to the current global market, reflecting increases in the ratios of automatic transmission vehicles in Europe, increases in percentages of A/T-equipped mini-cars in Japan, as well as recovery in automobile demand in the Asian market and increases in the percentages of A/T-equipped vehicles within that market.
Under these circumstances, in order to accelerate development of new high-performance drivetrain which will meet future environmental needs, while at the same time seeking an expansion in global sales, the three companies shared the view that there is a need to create a structure which can make for even more efficient development, production, and technological capabilities, and to have greater flexibility in that system. This merger is the result of the shared understanding that combining the development and production technology capabilities of TransTechnology with JATCO's development, production and sales capabilities will bring about the desired effect. The new merged company will capitalize on business opportunities that are likely to expand as demand for A/T units increases and intends to actively expand sales outside the Nissan Group.
Outline of the new company to be established by the merger
- Surviving Company: TransTechnology Ltd.
- New Company Name After Merger: JATCO TransTechnology Ltd.
- Major Business Areas: Development, manufacture and sale of transmissions and automobile components
- Headquarters Location of New Company: 1-1 Yoshiwaratakaracho, Fuji City, Shizuoka Prefecture
- Capitalization After Merger: 29.9 billion yen
- Number of Employees After Merger: Approximately 6,500
- Top Management After Merger:
- Chairman: Kenichi Sasaki (current President of JATCO)
President: Kiyoshi Ishibashi (current President of TransTechnology)