Amid the global airbag crisis Takata Corp. is embroiled in, Chinese supplier Ningbo Joyson Electronic Corp. stepped up to take advantage of the situation, according to an article by China Daily.
Founded by Wang Jiangfeng, the once little-known company has transformed into one of China's largest suppliers of automotive components. Joyson counts Volkswagen AG and General Motors Co. as some of its major customers.
Since United States regulators imposed reparations on Takata after its airbag inflator propellant was found to be linked to 11 deaths, Joyson bought a small airbag supplier called Key Safety Systems in February. The acquisition cost $920 million in cash through private-equity firms.
To fill the huge gap Takata has left in the tough market, other companies have also ramped up production. Firms that have joined the party include ZF Friedrichshafen AG from Germany, Daicel Corp. from Japan, and Autoliv Inc. from Sweden.
Takata, on the other hand, may shed billions of dollars in potential compensation to pay for recall costs. Third-party outsiders have been called in by the Japanese company to draft a restructuring plan.
"It's very difficult for Takata to recover from this and the company may be facing a bankruptcy crisis," Tang Yuxin, Joyson's CEO, said in a phone interview with China Daily.
"All of this has given us a heaven-sent opportunity to enter the industry. What was a market split among four is now shared among three players, so the opportunities naturally have increased a lot," Tang added.
To make the most out of the opportunity, Joyson aims to minimize car-related injuries and breaks through Key Safety's drive-control systems. This technology will help detect possible collisions, providing ample safety by triggering brakes and deploying airbags automatically.
Through its acquisition of Key Safety, Joyson might as well dethrone the triumvirate of auto-safety components suppliers in the world--Takata, ZF's TRW, and Autoliv.
Joyson also bought the automotive division of TechniSat Digital GmbH to bolster research and development in car connectivity, navigation systems and infotainment.
This year, Joyson is expected to gain sales of up to 20 billion yuan, and 30 billion yuan in the next three years, according to Tang.