There is a claim that OEM and aftermarket components produced by the same company are similar. However, a top Tier 1 supplier who produces both acknowledged last month that there might be variations.
The director of Denso’s original equipment service parts division, David Williams, told attendees at the Collision Industry Conference on July 25 that his company supplies components to all automakers and has remanufacturing facilities as well as an aftersales division.
According to him, Condensers and Radiators make up the majority of Denso’s inventory of what the industry would classify as collision parts. Denso specializes in electromechanical parts and thermal components.
Williams responded that it was “very, exceedingly rare” when asked if Denso ever supplied aftermarket components that went above manufacturing specs.
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OEM standards
As a customer of DENSO, Toyota will expect the Tier 1 supplier to “live up to certain standards,” according to Eric Mendoza of Toyota, a fellow panelist on the CIC Parts and Materials Committee. Mendoza said some of these could be running quality control inspections on a specific number of pieces at a specific frequency.
According to Mendoza, manager of Toyota’s collision operations section, an aftermarket distributor would likewise have their own set of requirements.
William concurred. He stated that testing, shape, fit, and function, as well as consistency over the course of the contract, are OEM criteria for factory parts. OEM service parts would operate similarly.
He said that automakers frequently inspect the business and practice “early detection, early resolution, or EDER.” Williams noted that if there are any Denso delivery or quality issues, “they are there.”
A part must still comply with material and performance requirements even 15 years later, according to Williams. Any deviations must be submitted for permission to the OEM.
According to Mendoza, Toyota sells both “OES (OEM service) components and a less priced OE Second Line set of parts for use by consumers and repairers. Toyota offers warranties for both, he said.
Mendoza responded that both the OES and Second Line parts “came from Toyota” when asked about the “distinctive value between the less expensive OE Second Line parts and solely aftermarket reproductions of Toyota parts.
Both were cleared by Toyota engineers in Japan, Mendoza claimed. He claimed, “It’s Toyota through and through. Both are designed to offer buyers the dependability and quality they were looking for when buying a Toyota.
Aftermarket standards
When DENSO makes available its own own aftermarket components via retail channels, “According to Williams, it doesn’t satisfy the same standards as the products it creates for an OEM.
According to Williams, Denso establishes its own standards for the aftermarket part’s consistency, quality, shape, fit, and function.
According to Williams, distributors are Denso’s customers; no changes have OEM clearance. Distributors frequently lack the capacity to audit supply and quality, therefore Denso must exercise self-policing, he explained.
Later, Mendoza emphasized this. When specifications for an aftermarket component are established, “He said that Toyota is not at all included in that.
According to Williams, Denso is liable if an aftermarket part from the company is sent via a third party channel and has problems. According to him, this could explain why some aftermarket components aren’t produced since the manufacturer isn’t prepared to take a chance that a problem in that sales channel could cost an OEM its mass-production business.
Denso first determines what will sell in the market for aftermarket production before reverse-engineering it using its OEM expertise.
Denso would consider a part’s shape, form, fit, and functionality before deciding how to “To appeal to a larger market, Williams added, “back that off.”
Williams used an OEM platform with a 41 mm condensor as an illustrative example. For a requirement like this, Denso might decide to create a 40 mm aftermarket condensor that can fit vehicles with 39-42 mm condensors “‘85% of OE cooling,’ it says.
Williams stated that Denso will compare their aftermarket component to the component it created for the manufacturer internally.
According to Williams, an aftermarket part might, for instance, employ the same core as the OEM but alter the tank’s position, composition, or fin density.
He claimed that in both its aftermarket components and Toyota Second Line parts, Denso normally aims for roughly 85-90 percent of OEM specifications.
Williams stated that not all product categories or all automobiles would adhere to the 85-90 percent guideline. (It wasn’t clear if this remark pertained to OE Second Line parts, aftermarket parts, or all of those two parts groups.) He declared that Denso wouldn’t cut corners on producing high-quality parts for Toyota.
Resell the same part?
Williams laughed when asked why Denso wouldn’t just offer OEM parts in its own packaging.
There are “two primary buckets of reasoning,” he noted, one being contractual and the other strategic.
The development of a brand-new, never-before-done product by Denso for an OEM like Toyota may provide a contractual impediment, according to Williams. Denso does not possess the intellectual property, according to the carmaker. (Therefore, for Denso to sell that IP on the side would be an infringement.)
The OEM can potentially demand ownership of a tool, in which case Williams stated, “we can’t distribute that item.”
According to Williams, a Tier 1 supplier like Denso might also sign a master buy agreement for a component on which the automaker wants to print its mark. The producer of the parts was unable to distribute a part with such branding.
Williams proposed that capitalization might be a tactical impediment to retailing the same part even in the absence of an OEM brand.
According to Williams, Denso will invest the funds and construct a factory line that can match the requirements of an OEM’s production contract in addition to having adequate “safety stock for wiggle space.”
Some motor parts require a significant capital expenditure, according to Williams. If the aftermarket sales aren’t assured, Denso wouldn’t take the chance of investing more money to increase capacity, he claimed.
Other times, He said, a Tier 1 supplier can be too tiny. He indicated that in order to safeguard their OEM business, they might decide not to pursue an aftermarket capability for a while.
Finally, according to Williams, no distributor wants to carry a specific Tier 1 aftermarket item for every car ever produced. Instead, they prefer to stock Tier 1 aftermarket parts that can fit a variety of models.
OEM and aftermarket supplier versus aftermarket-only supplier
Williams stated that Denso will declare its status as a “To set itself apart from other aftermarket businesses, the OE supplier. In contrast to other aftermarket part firms that reverse-engineer a component and find someone to produce it, the goal is to show Denso’s part manufacturing skill is at a level where even an automaker will employ its services, he added.
On a specific car, Denso may offer an aftermarket sensor that is different from the OEM model. He added that the sensor might have been utilized on the vehicle’s earlier iterations or those made by different automakers.
Williams noted that whereas another aftermarket provider just knows what it discovered through the reverse engineering of the device, Denso has a thorough understanding of the sensor.
According to Williams, Denso will also pay attention to how an aftermarket component works with the rest of a vehicle’s architecture.
According to Williams, an aftermarket component that was reverse engineered “in and of itself, without consideration of the car as a whole, may not operate in a “optimal way.
OEM suppliers like Denso will consider the complete car at that deeper level, he claimed.
Williams’ message, as summed up by Mendoza, was that a distributor may find solace in aftermarket components produced by an OEM source because “They’ve got the knowledge. According to Mendoza, their aftermarket parts may be of a greater caliber than those made by other manufacturers.
Denso makes aftermarket components and a “Mendoza claimed the aftermarket part was outstanding. Nevertheless, “there is a very noticeable difference, as the conversation on July 25 showed.
In the end, the aftermarket component was “still a secondary component, he claimed.
Mendoza claimed he didn’t foresee a circumstance in which automakers would establish a specific standard for aftermarket parts or work with manufacturers to produce them. He claimed that purchasing a Toyota part was the only surefire way to obtain Toyota safety criteria.
He made a note stating “That a distributor would ask an aftermarket manufacturereven a Tier 1 manufacturer who sells to OEMsto construct a safety item to manufacturer requirements without any OEM engagement or certification terrifies the living daylights out of me as well.
Correction: An previous version of this story suggested that DENSO had always distinguished between OEM and aftermarket parts made by the same manufacturer. DENSO did not state things in such an absolute way; rather, it stated that such variations would occur for contractual and strategic reasons. Since then, the article has been updated to reflect this.
Images:
The millimeter-wave sensor for the 2018 Lexus LS is made by Denso. (According to Denso)
The manufacturer of OEM air conditioning products, Denso Manufacturing Michigan, is displayed. (According to Denso)
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What brand is Toyota’s original equipment manufacturer?
Original Equipment Manufacturer (OEM) parts are manufactured by the automaker, in this case, Genuine Toyota Parts, and are the identical components that were used in the construction of your Toyota vehicle.
It is highly likely that your automobile will get brand-new Genuine Toyota parts to replace whatever component broke when you bring it to be fixed at a Toyota Authorized Dealer. You will typically have the choice of using OEM or aftermarket parts if you bring your car to an independent mechanic shop for maintenance or repairs.
The term “aftermarket parts” refers to parts produced by businesses other than the original producer, in this example, Toyota. Aftermarket components come in a variety of quality and price ranges and are designed to replace OEM components. You can be certain of what you’re receiving when you use OEM parts. There isn’t much of a guarantee with aftermarket components. Let’s examine each part type in more detail.
The safest course of action when a part on your Toyota needs to be changed or repaired is to have the work done at a Toyota Authorized Dealer using Genuine Toyota Parts. While there are valid justifications for using aftermarket components rather than OEM components, you should carefully weigh the many benefits that Genuine Toyota Parts offer before making your own decision to have your Toyota fixed.
Consistency and High Quality Genuine Toyota parts are recognized for their superior quality. Genuine Toyota Parts are guaranteed to perform as intended when you replace a part with one.
Simpler to Select When you use OEM parts, selecting the right replacement component is simple. When it comes to OEM parts, there are significantly fewer possibilities, making it simpler to locate the precise replacement. Warranty Compared to aftermarket alternatives, backed OEM parts typically have superior warranties. The Toyota Replacement Parts and Accessories Warranties only apply to Genuine Toyota Parts. Any defects or issues brought on by the use of aftermarket components are not covered by any Toyota warranty.
Cost virtually usually less expensive than OEM parts are aftermarket parts. However, you may end up paying more in the long run if you take into account the inconsistent nature of aftermarket parts and the possibility of having to replace them more than once.
Quality To be honest, aftermarket components have undergone major modifications to raise their general level of quality. Finding high-quality aftermarket components is achievable if you know where to seek and what to look for.
Variety Aftermarket components give a lot more variety and options than OEM parts, which have a small selection. You might find the aftermarket parts you need if you desire a specific impact on the performance of your car. Just keep in mind that Toyota’s warranties DO NOT cover aftermarket items.
Is Toyota the owner of DENSO?
Denso helps Toyota participate in and develop its cars for many motorsports categories because it is a member of the Toyota Group. For the Toyota-Lexus motorsports development divisions Toyota Racing Development and the European racing facility of the firm Toyota Motorsports GmbH, located in Germany, Denso makes customized electronics and various auto parts. Spark plugs, starter motors, fuel pumps, alternators, Engine Control Module computer systems, engine & transmission sensors, and many other high-performance automotive and motor racing equipments and accessories are just a few of the high-performance automotive and motor racing equipments and accessories that Denso specifically engineers for Toyota in motorsports. These include NASCAR, Formula One (from 2002-2009), World Rally Championship, and others. In the 2013 24 Hours of Le Mans, the Denso kinetic energy recovery system-equipped Toyota TS030 Hybrid placed second.
Additionally, many regional Japanese motorsports, such as Super Formula and Super GT, use Denso components.
Which auto parts does DENSO produce?
Oxygen sensors, compressors, starters, alternators, fuel pumps, oil and air filters, wipers, and many other items are part of the DENSO First Time Fit product range.
Where are Toyota parts manufactured?
Toyota claims that 60% of the parts it uses in the United States are domestically made, but only 1% to 2% of the parts Toyota uses in Japan, where it handles the vast majority of its manufacturing, are imported. The question the Americans were whispering to one another in the hallways here was how much the largest automaker in Japan would be willing to loosen the hold of the Toyota “keiretsu,” the network of suppliers with which it has close ties and frequently financial links. Political pressure seems destined to change that, though.
The auto supply industry in this country is dominated by keiretsu firms. Many of the largest suppliers have followed Toyota abroad to its “transplants” in the United States and Europe because they have access to Toyota’s trade secrets and are frequently ready to forgo some revenues for the benefit of the parent company. The system is buckling under American pressure; Nissan just stated it will start purchasing petrol pumps from an American joint venture that also includes Nippondenso, a division of the Toyota conglomerate.
As one of Japan’s most sneaky trade obstacles, the keiretsu connection has come under fire from American trade negotiators. As a result, Japan promised to remove these links as part of negotiations earlier this year. T. Boone Pickens, a Texas oilman who has been trying for more than a year to join the board of the Koito Company, a Toyota-affiliated maker of headlights, claims that Toyota is keeping him out because he would be able to see how it manipulates its suppliers to put the interests of automakers ahead of their own shareholders.
However, the keiretsu model is revered in some circles, including among some Americans, as a key component of Japan’s capacity to speed up the process from concept to production, minimize manufacturing costs, and lower the amount of defective parts to what Toyota claims is presently 10 parts per million. In “Mutual Trust,”
Iwao Okijima, a member of Toyota’s board, told the American suppliers, who produce everything from injection-molded bumpers to seat-belt systems, that “in Japan we are at the point of mutual trust with our suppliers.” “However, it took 50 years to get here. We have to finish it quicker with you.”
Insiders claim that after becoming accustomed to Toyota’s requirements, it became more manageable than many American businesses. According to James P. Sheya, vice president of sales and marketing for Masland Industries, a Carlisle, Pennsylvania-based business that produces textiles for trunks and automobile interiors, “Toyota makes decisions considerably faster than the Big Three.” “Additionally, those working as grunts for the firm are far less narrow-minded. They can see how each component works together to form the whole car.”
Both Americans and Japanese agreed that desire to do things Toyota’s way is the key to developing the kinds of “long-term, stable partnerships” that Toyota officials kept characterizing as the distinctive feature of Japanese auto manufacturing. Strong Advice Ignored
When executives in the United States ignored strong requests from Toyota that they change the materials they were using to make a lighter, more durable part, Toyota executives in the United States, according to an American supplier of suspension-system parts who asked to remain anonymous, lost business with Toyota recently. He claimed that Toyota’s buying representatives frequently stated that it would be challenging to modify the old product to meet Toyota’s new requirements.
That is a polite way of saying it would not be possible in Japan. Despite understanding that the older components were still suitable for American manufacturers, the American company made no response.
One of the most challenging jobs, according to American officials, was getting used to how quickly Toyota expects its suppliers to be prepared for production and to reduce production costs and share the savings with the automaker.
In order to reduce errors to almost zero by the time mass production of the automobile started, Toyota officials informed the suppliers, for instance, that they would expect them to have the dies and castings needed for mass production available when Toyota was still producing prototypes. The suppliers claimed that the majority of American manufacturers provide a grace period for lowering faults. Using less energy and labor
The majority of the changes involved cost savings, and during the presentation Toyota officials gave several examples of how manufacturers had already reduced waste before they received Toyota’s business by reshaping metal pieces to squeeze more out of a sheet of material, changing forging techniques, or heavily investing in more automation for their factories. Many of the recommendations included increased inspection to ensure that fewer defective parts were transported, as well as strategies to save energy or cut labor costs.
However, Mr. Noguchi concedes that even if American businesses adhere strictly to Toyota’s principles, they will still be at a disadvantage against Japanese suppliers, at least in Japan. That is due in part to the expensive delivery of parts here.
The greatest chance, according to him, was to increase the number of regional suppliers Toyota could use on its American manufacturing lines. However, even there, at least 15% of the “local” suppliers are either joint ventures between American and Japanese component manufacturers or subsidiaries of Toyota’s Japanese suppliers, according to several Americans.
Toyota disputes Mr. Pickens’ claim that it is attempting to establish a keiretsu in the country. Masakazu Nagai, a senior Toyota executive, said: “This is not a political or significant investment issue. “These are issues of efficiency, cost, and quality. That’s it.”