Toyoda Gosei will acquire 100% stake in Pecval Industria (Pecval), a Brazilian manufacturer of automotive interior and exterior parts, by December, the Japanese supplier announced in a press release last week (25 August).
Significance: Currently, Pecval is jointly owned by two Japanese suppliers, Toyoda Gosei and Shimizu Industry. Toyoda Gosei holds 30% stake, which it acquired from Shimizu in August 2015, and Shimizu Industry holds the remaining 70%. Pecval manufactures automotive interior and exterior parts such instrument panel components, radiator grilles, among others. The company currently employs around 194 people and reported sales of BRL92.75 million (about USD28.4 million) in 2016, according to the press release. The full ownership of Pecval will strengthen Toyoda Gosei’s supply system for interior and exterior parts, enabling the company to better meet needs of customers.
Besides Pecval, Toyoda Gosei operates another site in Brazil, GDBR Industria e Comercio de Componentes Quimicos e de Borracha Ltda., which supply interior and exterior parts, safety systems, and weatherstrips to automakers. This Brazilian subsidiary commenced operations in January 2015.
IHS Markit expects Brazilian light vehicle production to go up from nearly 2 million units in 2016 to more than 2.9 million units in 2020.
