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Challenges to Address

Challenges to Address

In the automobile industry, which is undergoing dramatic change, the Company, for the survival as a business operator, is promoting initiatives that focuses on the following issues.

Evolution into a system supplier (Tier 0.5) in the vehicle body area

In order to respond to the rapid shift to EVs that is progressing worldwide, each company in the automobile industry is devoting considerable manpower to the development of competitive EVs, as well as to new areas such as batteries and motors, while at the same time, urgently constructing a new supply chain in different regions across the world. It is anticipated that automotive OEMs will expand its use of suppliers as external resources in order to cover the large amount of labor that is needed for this.

The Company regards this to be a business opportunity, and by making full use of its body in white analysis and production technologies that it has cultivated through to the present, while also actively examining and utilizing external alliances, it shall evolve from its current status as a Tier 1 supplier, or primary manufacturer, into a Tier 0.5 supplier, which is one stage higher, with the objective of establishing a business model in which it is a “system supplier in the vehicle body area” that receives orders from automotive OEMs at each stage from development to mass production.

At present, the Company is building alliances with companies in various areas from the perspectives of development partnerships, supplementing production capacity, and the procurement of materials and equipment, and is demonstrating multiple EV-related technologies on its demonstration line at its site in Tokyo, based on these increased resources. We will continue to strengthen external alliances, and in addition, will continue to work towards commercialization at an early stage.

Realization of smart factory

Electrification of automobiles has the potential to drastically change the structure of body parts and the way body parts are made. Emergence of “gigacasting,” which integrates components that were previously made up of multiple parts, is seen as one sign of this trend. This transformation of the car body structure will force a change in the production system and the factory itself. Next-generation factories must be more productive and reliable than ever before.

In response to such issues, the Group is working to improve its productivity and reliability by creating the production sites of the future based on the concepts of “smart factories,” and “flexible production systems capable of responding flexibly to fluctuations in production volume.” We are aiming to implement smart factories that achieve advanced, high-quality, low-cost operations by promoting the automation of in-factory logistics, the automation of manufacturing processes, the introduction of automated inspections, and the use of big data for production site.

Investment in human capital

Based on the credo of “respect human dignity,” the Company considers that talent is the most important management resource, and is promoting efforts for growth together with employees under the policy to “provide all employees with opportunities for growth and assist in their voluntary upskilling efforts” and “create talent that generates new value towards the next era.”

The Company’s priority measures have been stated to be assisting each and every employee in their personal growth, supporting the active participation of personnel with diverse backgrounds, nurturing candidates for executive management, and hiring specialist human resources; in regard to the promotion of opportunities for women, the Company is working on management based on plans and results, with KPIs such as increasing the hiring ratio of women to 25%, increasing the ratio of women in executive positions by 1.5 fold compared to the fiscal year ended March 31, 2023, increasing the ratio of men taking childcare leave to 30% or more, and implementing at least one new measure that will support diverse working styles, by 2028.

In addition, in response to the recent increased mobility of human resources, the Company will not only improve “ease of working” through the establishment of a human resources system that is aimed at employee retention, enhancing welfare, as well as promoting and expanding healthy management, but based on the awareness that it is important for every single employee to be able to experience “job satisfaction” as well as the “significance and benefits of working at G-TEKT,” the Company will strengthen and promote measures to improve engagement, such as expanding communication with the management level, enhancing training at the management level, and matching through interviews with junior employees.

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