Stanley Electric Co., Ltd. (“Stanley Electric”) and Mitsubishi Electric Mobility Corporation (“Mitsubishi Electric Mobility”) announced today the two companies have reached a basic agreement to establish a joint venture (the “JV”) to handle electronic and control components for lamp systems for next-generation vehicles (four-wheel and two-wheel vehicles) (the “Transaction”). Stanley Electric has resolved at today’s Board of Directors meeting to sign the basic agreement for the Transaction.
The JV will combine the strengths of Stanley Electric’s automotive lamp system business and Mitsubishi Electric Mobility’s electronic and control components business, and will develop, design, manufacture, and sell electronic and control components for automotive lamp systems for next-generation vehicles (four-wheel and two-wheel vehicles). In recent years, as the automotive industry has undergone significant changes in response to Advanced Driver Assistance Systems (“ADAS”) and the realization of a self-driving society, Stanley Electric and Mitsubishi Electric Group (Mitsubishi Electric and Mitsubishi Electric Mobility are collectively referred to as “Mitsubishi Electric Group”), based on the business partnership announced on December 25, 2020, titled “Announcement of Business Partnership in the Automotive Lamp System Business – Aiming for Zero Traffic Fatalities –,” have aimed to achieve automotive lamp systems with even higher levels of safety and functionality compared to existing systems. As a result, Stanley Electric and Mitsubishi Electric Mobility have reached a basic agreement to establish the JV, going beyond the mere business partnership, with the goal of providing high-value-added products that will contribute to the realization of a sustainable society, where zero traffic fatalities in the mobility society can be achieved.
Stanley Electric places “The boundless pursuit of the Value of Light,” at the core of its management philosophy, aims to contribute to society by providing products equipped with safe and reliable lamp systems that help achieve zero traffic fatalities, and pursues the infinite value of light based on thorough research into light output and ergonomics, through the light tunnel owned by Stanley Electric. Stanley Electric Group’s (Stanley Electric and its affiliated companies are collectively referred to as “Stanley Electric Group”) main business consists of the manufacturing and sales of automotive equipment business, components business and applied electronic products business, with research and development (“R&D”) functions closely connected to each of the three business segments. With these three segments, Stanley Electric Group can capture diverse needs, create value that meets those needs through its R&D activities, and generates social and economic value through new technologies and products by the interconnection of these segments.
Mitsubishi Electric Group has strengths in optical devices, LED lighting for homes and industries, and control optimization technologies. Mitsubishi Electric Mobility, which handles the automotive equipment business,
leverages the comprehensive capabilities of Mitsubishi Electric Group to engage in the lighting and illumination control business. In response to the increasing demand for safety in automobiles, driven by the development of ADAS and autonomous driving, Mitsubishi Electric Mobility aims to achieve further growth in the lighting and illumination control business by harnessing synergies with new partners, which will enable the realization of higher value-added systems, both in terms of product form and functionality.
The JV will offer new and attractive products to a wide range of customers, maximizing the synergy of Stanley Electric’s optical control system technology that contributes to safety and reliability through automotive lamp systems and Mitsubishi Electric Mobility’s advanced control system technology.
The JV is expected to have Stanley Electric as the majority shareholder. The completion of the Transaction will be subject to regulatory clearances and consents of competition and other relevant authorities.
An overview of the new JV is in the Appendix. Further details, which are currently under discussion between Stanley Electric and Mitsubishi Electric Mobility, will be announced as they become available.
