CEO Message
Creating a sustainable future through mobility
Beyond evolution: Co-creating society through mobility
Our company name, Astemo, is derived from “Advanced Sustainable Technologies for Mobility.” The name embodies our strong commitment to providing safe, comfortable, and sustainable mobility life through technologies that contribute to an advanced and sustainable society. Mobility has helped overcome constraints of time and distance, supporting the development of society and culture. Now, we stand at the forefront of that evolution, bearing the mission of envisioning and realizing the next era of mobility with our own hands.
To clearly articulate this mission, we have formulated our MISSION, VISION, and VALUES (MVV) together with our associates around the world. The MISSION of “contributing to a sustainable society and improved quality of life by providing world-leading advanced mobility solutions” represents our reason for existence, which remains a constant across time.
In pursuit of this MISSION, we defined the “desired state” we seek to achieve in 10 years as our VISION, and the “values” and “decision-making standards” that each associate should embrace to realize our VISION as the six VALUES.
Our corporate slogan, “Mobility Beyond” embodies our desire to transcend national borders, cultures, industries, and organizational boundaries to expand freedom and possibilities for movement.
We aspire to go far beyond the traditional role of a parts manufacturer, and aim to transform into a comprehensive mobility solutions provider. We will continue to relentlessly pursue advanced technologies and strive toward realizing a sustainable society and improved quality of life.
In pursuit of this MISSION, we defined the “desired state” we seek to achieve in ten years as our VISION, and the “values” and “decision-making standards” that each associate should embrace to realize our VISION as the six VALUES.
Our corporate slogan, “Mobility Beyond” embodies our desire to transcend national borders, cultures, industries, and organizational boundaries to expand freedom and possibilities for movement.
We aspire to go far beyond the traditional role of a parts manufacturer, and aim to transform into a comprehensive mobility solution provider. We will continue to relentlessly pursue advanced technologies and strive towards realizing a sustainable society and improved quality of life.
Astemo’s strengths in responding to an era of transformation
The automotive industry is currently at a turning point that is said to be a once-in-a-century period of great change. Driven by accelerating structural change and advances in digitalization, the two major trends of electrification and intelligence are dramatically transforming the industry. Until now, battery electric vehicles (BEVs) and software-defined vehicles (SDVs)—in which the entire vehicle is controlled in an integrated manner via software to enhance safety and efficiency—have been developed in parallel.
Although the growth of the electric vehicle market has temporarily slowed, SDVs continue to attract attention, and this change is a major opportunity, as the Astemo Group’s competitive advantage lies in areas that are at the heart of this transformation.
For example, in addition to electrified products such as e-Axles, inverters, motors, and electronic control units (ECUs), we have developed and possess a wide range of core technologies for the SDV era, including chassis technologies that provide high-precision control of driving, turning, and stopping, as well as advanced stereo cameras.
Furthermore, by utilizing the latest digital technologies, we’re differentiating ourselves in advanced areas such as over-the-air (OTA),* cloud-based design, and advanced data utilization. Our newly established strategic software development base in Shibuya plays a central role in our integrated control technology.
By controlling these technologies not individually, but in an organic and integrated manner, we can achieve safety and comfort that transcend traditional automotive paradigms. The Astemo Group’s integration technology, which freely combines hardware and software, is our unique strength, and we are confident that it will be a source of overwhelming differentiation in the mobility society of the future.
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Over-the-air (OTA): Technology for updating software via wireless communication
Sustainable mobility driven by integration and innovation
Born from the integration of Hitachi Automotive Systems, Keihin, Showa, and Nissin Kogyo, Astemo is strengthening collaboration and integration across a global production network of approximately 130 sites, promoting high-level standardization across the organization. As a result, the entire group’s sense of unity and ability to execute has dramatically improved, building a more robust business foundation.
Moreover, by actively utilizing digital technologies throughout all processes from design to production and promoting concurrent engineering,* we have achieved significant advancements in both development efficiency and product quality. These initiatives combine our technological and organizational strengths, serving as a driving force toward realizing sustainable mobility.
The Astemo Group continues to pursue advanced sustainable technologies, never ceasing its drive for innovation. In our manufacturing processes, we work to reduce CO2 emissions and waste while promoting recycling, and actively incorporate highly reusable materials and structures from the design stage.
Furthermore, realizing a decarbonized and recycling-oriented society is a challenge that cannot be achieved by Astemo alone. Through close collaboration with automobile manufacturers and suppliers, we’re steadily progressing toward the realization of a sustainable society across the entire value chain.
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Concurrent engineering: A method of shortening development time and reducing costs by simultaneously advancing multiple phases of a product's development process while encouraging inter-departmental information sharing and collaboration
Trusted governance built on transparency and effectiveness
As a globally operating corporate group, the Astemo Group recognizes that sound supervisory functions and fair decision-making processes are the foundation of all corporate activities and sustainability. It positions the building and maintenance of a governance system with transparency and effectiveness as a top priority.
Based on this recognition, in October 2023, we transitioned to being a company with an Audit and Supervisory Committee, increased the proportion of outside directors, and strengthened the system for incorporating diverse perspectives and external expertise into the Board of Directors. Additionally, by establishing a Nomination Committee and a Remuneration Committee, both of which consist of a majority of outside directors, we have created a system that ensures greater transparency and fairness.
In addition to holding discussions among management when formulating our business strategy and medium- to long-term visions, we also receive numerous constructive opinions from outside directors through ongoing discussions at Board of Directors meetings. Going forward, we will continue to actively recruit human capital with the skills and expertise necessary for our company’s growth, strengthen management supervision functions, and improve our organizational structure.
Moreover, we’re working not only to establish formal systems, but also enhance governance as an integral part of our organizational culture. By fostering a corporate culture of open dialogue, where all officers and associates share a strong awareness of compliance and responsibility for quality, we have established a system where Gemba voices are reflected in management, enabling unified decision-making across the organization.
Individual growth as the driving force for creating organizational value
Our business is supported by the strengths of each and every one of our approximately 80,000 associates, which is my source of pride. In the Astemo Group, which spans more than 20 countries worldwide, diverse human capital with various backgrounds are thriving by leveraging their respective expertise. I’m determined to build an inclusive organization where everyone can fully demonstrate their strengths and abilities.
In building this inclusive organization, we prioritize developing human resources who can refine their sensibilities and continue to take on challenges through collaboration with diverse colleagues. We share the message that “each associate should pursue self-fulfillment through the company” along with the belief that individual growth leads to organizational value creation. As a specific measure, we are using our global “talent review” system to make the human resources in each organization visible and to formulate development plans. We provide robust support for the growth of talented and ambitious human resources through training and projects. To instill leadership values and awareness of their importance throughout the company, we’re establishing a global coaching culture and implementing programs for managers.
Furthermore, to develop human resources capable of adapting to change, we have introduced a self-learning platform and are advancing DX human resource development while providing reskilling opportunities. This creates an environment where associates can flexibly and proactively enhance their skills. We are investing heavily in DX human resource development, with the goal of training approximately 3,000 people by around 2030 to be able to use AI and other technologies to develop Astemo’s advanced technologies while improving operational efficiency, ensuring the creation of business value.
Additionally, the health and safety of our associates are extremely high priorities, and I personally visit sites to listen to voices from the Gemba. I believe the workplace contains both challenges and possibilities. Through small-group activities and dialogue, we are promoting the creation of workplaces that bring out the full potential of each individual’s insight and enthusiasm.
Turning change into strength and connecting trust and value to the future
Although the business environment is expected to continue changing significantly, we will not fear these changes. Rather, we will view them as opportunities, respond flexibly, think creatively, and act boldly.
I believe it is important to have a B2C mindset that enables us to think quickly and deeply about what kind of society and products people around the world want. We aim to become a company that responds to diverse societal demands, resolves social issues through our business, and continuously creates new value.
To achieve this, it is essential to further enhance Astemo’s brand value, while evolving the relationships of trust we build with all stakeholders so that they are deeper and more sustainable.
As a company pioneering the future of mobility, the Astemo Group, with all associates united as one, will continue to take on new challenges, driving transformation to earn the trust of and be relied upon by society. I sincerely ask for your continued warm support and guidance.
Kohei Takeuchi
Representative Director, President & CEO
Astemo, Ltd.