Hitachi, Denso Take Aim at Auto Repair Services
In light of their wealth of electronic technology, Hitachi Ltd and Denso Corp are making plans to enter the auto repair industry.
Cars are more and more run by microcomputers and sensors are used to control functions. Denso and Hitachi have knowledge and ability in computer hardware and software making them a likely choice to set up a single-location shop to treat anything that ails a car…IF/When something goes wrong.
Hitachi plans to open 100 repair shops in Japan under the name Hitachi Mobile Co. Mechanics. The subsidiary will use electronic diagnostics to inspect and analyze equipment.
Denso will open 14 centers this year to inspect and repair electrical systems on-site at existing repair shops and new car dealers and hopes to have about 100 centers by 2015.
Can they make money?
Hitachi hopes to generate sales in auto-related operations to 1 trillion yen in fiscal 2010 up from the 580 billion yen the company made in 2005.
Yup…there's a lot of money to be made in car repairs in Japan.
And, we thought Japanese cars didn't break down.
Where do you take you car for repairs?
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July 20, 2007
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November 12, 2009
Ah, great idea! Good work Hitachi, very clever and creative. It certainly is ironic, thinking of all that profit potential that exists from the most ‘reliable’ cars in the world! I have owned 3 Toyotas, though, and have to vouch for the fact that even when there is something wrong with them, they just keep going. My Toyotas have survived the punishments of being a first car, being the car I drove when I was a student, and being the car I drove when my budget was shot from having kids. So maybe Hitachi can downsize that guesstimate a little …!