Mitsubishi Electric Automotive America to Provide GM with Ignition Coils for Two Million Engines
TOKYO, August 2, 2001—Mitsubishi Electric Corporation (President: Ichiro Taniguchi) today announced the signing of a contract with General Motors Corporation (GM) (President: G. Richard Wagoner Jr.) for the long-term supply of automotive ignition coils.Furthermore, due to this order, Mitsubishi Electric will carry out a capital investment for its US subsidiary, Mitsubishi Electric Automotive America, Inc. (MEAA) to expand its production-supply structure.
Details of Order
Current plans are that Mitsubishi Electric will deliver ignition coils to GM in the
nine-year period from 2001 to 2009. The total amount of the order will amount to $730
million. At peak times of production, it is expected that ignition coils will be supplied
for two million engines per year.
Background of the Order
Mitsubishi Electric began supplying ignition coils to GM in January 1998. Since then its
ignition coils have been built into approximately 500,000 engines. Mitsubishi
Electric’s delivery results and the outstanding quality of its products have been
highly evaluated by GM. This led to GM awarding Mitsubishi Electric the "Supplier of
the Year" award for two consecutive years in 1999 and 2000. This large order
signifies GM’s high appraisal of Mitsubishi Electric’s delivery results.
Future Prospects
Mitsubishi Electric will develop and design the ignition coils in Japan, and the
Maysville, KY, plant of MEAA will be responsible for production. In order to realize this
plan, Mitsubishi Electric will expand the Maysville plant, introduce additional production
equipment and prepare for the expansion of the production-supply system. In line with the
production schedule of individual ignition coils, Mitsubishi Electric is planning to make
additional equipment investments in steps.
By using this business opportunity, Mitsubishi Electric will propose other business ideas to General Motors regarding automotive equipment items to develop new businesses.
About Mitsubishi Electric Automotive America, Inc. (MEAA)
Head Office:
Mason, Ohio
Established:
June 1987. Company’s name changed and production and sales merged
in July 1997.
Business:
Production and sales of automotive products including alternators,
starters, car-audio and car-electronics
Capital:
$25.5 million (100% owned by Mitsubishi Electric Corporation)
Top Executive:
Mr. Takeo Sasaki, President
Number of Employees:
Approx. 860 employees
Annual Sales:
Approx. $700 million in 2000
About Mitsubishi Electric Corporation
With 80 years of experience in providing reliable, high-quality products to both corporate
clients and general consumers all over the world, Mitsubishi Electric Corporation (FTSE:
6503q.l) is a recognized world leader in the manufacture, marketing and sales of
electrical and electronic equipment used in information processing and communications,
space development and satellite communications, consumer electronics, industrial
technology, energy, transportation and construction. The company has operations in 34
countries and recorded consolidated group sales of over $33 billion in the year ended
March 31, 2001.
Additional information on Mitsubishi Electric is available at Global.MitsubishiElectric.com.
For More Information:
Matthew Nicholson
Public Relations Dept.
Mitsubishi Electric Corporation
Tel: +81-3-3218-2346
Matthew.Nicholson@hq.melco.co.jp
