Toyota to Merge Seatmaking Operations in Japan

Toyota Motor Corp. intends to fully merge the seatmaking operations of four subsidiaries as early as 2016, The Nikkei reports.

The move aims to help the units compete with larger U.S. rivals Johnson Controls Inc. and Lear Corp.

Toyota will shift production of seat motors made by Aisin Seiki, recliners from Shiroki and seat frames built by Toyota Auto Body to its 10-year-old Toyota Boshoku seat assembly unit. The subsidiary generated seat sales of 1.2 trillion yen ($10.1 billion) 90% to Toyota in the fiscal year ended last March 31.

Seats account for nearly 10% of a car's component costs, according to The Nikkei. It says Toyota's consolidation plan includes an effort to increase the use of common platforms and components across more vehicle models.