Denso to boost China output

Denso Corp., Toyota Motor Corp.’s largest component supplier, plans to expand production capacity in China during the next 12 months as rising demand outweighs concerns that labor costs in the nation will increase. Denso, will add “several hundred thousand units” of capacity in China, mostly to make air conditioners for cars, said Chief Executive Officer Nobuaki Katoh. Denso, which makes battery-control computers and electric-current sensors for Toyota’s gasoline-eelectric hybrid cars, said it expects net income to rise more than 30% to ¥98 billion (US$1.1 billion) in the year ending March 31. Denso is aiming to halve its production costs for parts to be used in carmakers’ low-cost models for emerging markets, Katoh said. (July 10, 2010)