Hitachi Cable News vol.368
70th annual business report   From April 1, 2006, to March 31, 2007

This serial feature introduces in sequence the products and services in the three target areas under Plan "BEGIN".* This issue, the second installment, introduces the automotive field.

* Please refer to special feature for an overview of the Plan "BEGIN" Midterm Management Plan.

Automotive business strategies

Supporting environmental responsiveness and electronics applications in automobiles

The world market of automobiles is expanding beyond the major markets of Japan, the U.S., and West Europe to other regions including China, Southeast Asia, India, East Europe, Russia, and Brazil. Alongside global proliferation of automobiles, researchers and engineers are actively developing technologies that incorporate consideration of environmental and safety factors. In addition to eco-cars that impose small environmental loads like HEVs (hybrid electric cars) and electric cars, safe driving systems based on advanced electronic controls and in-vehicle information systems are now available.

In these market and technological trends, the Hitachi Cable Group seeks to develop technologies and products based on the three themes of the "environment", "safety", and "information", thereby helping to advance the environmental and safety performances of automobiles and the state of car electronics. Plan "BEGIN" focuses on various components in addition to brake hoses, one of our key products adopted by major car manufacturers worldwide. These components include HEV power cable harnesses, various sensors like ABS (Anti-lock Brake System) sensors, electric parts like information and telecommunications components, magnet wires that help reduce the dimensions and increase the functionality of in-vehicle motors, and various functional components, including copper products that support the application of electronics to automotive components.

Establishing manufacturing and supply frameworks for the global market

By establishing manufacturing and supply frameworks for the global market early on, Hitachi Cable has responded to the global expansion of its car manufacturer clients. We've now established a four-sided framework involving Japan, the U.S., Europe, and Asia. For the purpose of expanding and enhancing manufacturing capabilities, we recently introduced brake hose assembly lines to our facility in Suzhou, China; constructed a new plant for manufacturing brake hose pipe at our facility in Thailand; and expanded the factory at our facility in Indiana in the U.S. to begin producing electric and electronic components.