Denso to Negotiate Transfer of Combustion Engine Parts Operations to Niterra

Automotive parts supplier Denso has signed a memorandum of understanding (MOU) to negotiate the transfer of certain internal combustion engine parts operations to Niterra.

The move comes as the automotive industry accelerates its shift toward electrification in the push for carbon neutrality. The sector continues to develop internal combustion engines, accounting for regional and country-specific energy situations and fuel usage. Denso aims to continue meeting customer expectations globally and contribute to carbon neutrality by developing products for electric vehicles and promoting business integration for products for internal combustion engines, a market projected to contract in the future.

Under the MOU, Denso is set to transfer its Spark Plug and Exhaust Gas Sensor product operations, including Oxygen Sensor and Air-Fuel Ratio Sensor, to Niterra. Niterra holds leading global technologies in its field, and the transfer is intended to boost the product appeal of internal combustion engine parts by integrating technologies and manufacturing capabilities.

The move will also enable Denso to quicken the development of products for electric vehicles in readiness for large-scale electrification, as well as energy management systems, which are becoming increasingly important for electric vehicles. This will allow Denso to offer appealing products in terms of performance and price across the entire automotive market, encompassing internal combustion engines and electric vehicles, furthering the early realization of a carbon-neutral society.

The MOU initiates deliberations for the business transfer of Japanese domestic and international development, manufacturing, and sales functions for the Spark Plug and Exhaust Gas Sensor products, which are part of Denso’s internal combustion engine parts operations.

Both parties will proceed with discussions and negotiations to finalize the business transfer contract, with the transfer taking place only after securing official approval from competition law authorities in all relevant countries and regions, as well as meeting all other requirements.