Denso to invest 2.5 billion yen in Sharp: Denso president
(Japan Economic Newswire Via Acquire Media NewsEdge) NAGOYA, Aug. 30 -- (Kyodo) _ Denso Corp. President Nobuaki Kato has said the leading auto parts maker plans to invest about 2.5 billion yen in Sharp Corp., probably in September, to help the struggling electronics maker strengthen its financial base to support its restructuring efforts.
In a recent interview with Kyodo News, Kato said Denso's investment in Sharp is aimed at strengthening their ties to promote joint development of auto parts.
Kato said Denso, affiliated with Toyota Motor Corp., is eyeing joint development including speedometer indicators in driver's seats by using Sharp's liquid-crystal technology as well as air-conditioning equipment.
Denso "will not be involved in Sharp's management (as the investment is small) but the investment will help spur closer joint development," Kato said.
Kato also said Denso plans to raise the ratio of new businesses such as health and medical care and auto parts sold for the public in its group overall sales from the current about 10 percent to 20 percent in fiscal 2020.
He said the development of the new businesses "will lead to their stabilization and further growth, and can bring in feedback to the auto business."
On the government's call for wage increases by businesses, Kato said his firm would like to meet the call by increasing bonuses for workers, while saying it will be difficult for it to raise monthly wages in the light of international competitiveness.
Kato also said the government should raise the consumption tax next April as scheduled and "it will have larger impact (on the economy or businesses) if it is put off."
(c) 2013 Kyodo News International, Inc.
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