
Drastic Changes in the Automotive Business
Since joining the company in 1987, I have been continuously involved in the sales of wire harnesses for automobiles. I’ve spent almost 40 years working in the automotive OEM business, including my transfer to Europe in 2008 and joining the executive team of the North American base for our wire harness business in 2020. Now, I am experiencing the most drastic changes I have ever seen.
The first is a change in market needs. Previously, the number one priority was to enhance performance. As a parts manufacturer, we were asked for products that upgrade performance and functionality, reduce size and weight, or contribute to lowering cost. However, basic functions are now taken for granted. Instead, our customers seek a wide variety of added value, such as in-car entertainment or interactive communication with the external environment.
Wire harnesses, our major product, have a role in transmitting energy and information. As the functions that relate to transmission are significantly increasing, we need to make significant changes to control methods. If automotive OEMs shift to a software-centric approach, how should we change the hardware? I believe that the composition and design of our products will continue to evolve in various ways.
Continuing to Engage in Global Business with a Trinity of Strengths
As changes are accelerating, it is essential to speed up the provision of proposals. To that end, we are securing resources for development, utilizing simulation technologies, and leveraging digital transformation (DX), all toward streamlining the entire process from planning and development to mass production.
We can do this thanks to a trinity of corporate strengths: planning and sales at Sumitomo Electric, development at AutoNetworks Technologies, and manufacturing at Sumitomo Wiring Systems. The development arm, AutoNetworks Technologies, was originally part of Sumitomo Electric’s R&D Unit. It is unique in its approach, differing from typical research and development organizations. Employees at AutoNetworks Technologies, along with us, sales representatives, visit customers to discuss their needs, sense them quickly, and respond effectively. This approach enables rapid development cycles.
In our efforts to develop business globally, our affiliated companies capture local needs in detail from customers in Europe, the U.S., ASEAN, India, and China. This enables us to swiftly respond to changes. In collaboration with Japan, we are engaging in proposal activities for customers around the world, leveraging the strengths of the Sumitomo Electric Group.
Factory Operations Halted by the Arab Spring. What Do We Do?
In 2008, I was transferred to Belgium to work as a sales manager for Japanese companies expanding their businesses in Europe. This was around the time when our manufacturing bases were being relocated from Eastern Europe to North Africa, and we had just started mass production in Egypt. Then the Arab Spring occurred. Democratic movements broke out in a chain reaction across Arab countries, and Egypt saw every function of the government come to a halt. The military was deployed and curfews were enforced, which naturally resulted in all our factories coming to a standstill. However, we could not stop supplying our customers. Among parts suppliers, only the Sumitomo Electric Group was producing in Egypt, while all other components were readily available.
An emergency response system was established, and in coordination with Japan, it was decided to carry out alternative production at our factories in Europe and Asia. However, setting up a manufacturing line immediately in a factory without materials or specialized equipment was a daunting task. As the point of contact for our customers, I explained our company's policy and requested production adjustments. I continued to visit customers every morning and evening to provide updates on the situation.
With the support of our factories in Romania and Thailand, and guidance from Japan, we rapidly set up the production line and started manufacturing at high speed. I was extremely grateful. At the same time, I experienced the extraordinary responsiveness of the Sumitomo Electric Group. I felt the strong awareness among everyone to "not stop our customers' production" and their resilience. This is our strength.
Trust from Continuing to Produce Results
I often feel that our customers have a strong trust in the Sumitomo Electric Group. This is not only because of our development technology, quality and delivery, or our ability to respond in times of trouble, but also thanks to the strength of our predecessors and everyone who has been involved with the Sumitomo Electric Group over the years. I truly believe that "trust is the Sumitomo Electric brand." When customers consult on new technologies, they sometimes raise their expectations on us, saying "since it's Sumitomo Electric, you can do it." We strive to respond to that trust with results.
As we enter a period of significant transformation in the automotive industry, the bar for maintaining trust will be raised even higher, but we will continue to take on challenges. Regardless of the environment, we will keep producing results that maintain our trust with our customers and society at large. We believe this is essential, as we uphold and promote the concept of "Goho-Yoshi" (Five-Way Win) in the Sumitomo Electric Group.
Moving Forward with a Style That Suits Me
I have been in sales for a long time, but I am not the charismatic type. My inclination is to listen carefully to the other person's words, understand their intentions, and maintain balance with the bigger picture in mind. I'm not always sure if I completely grasp the other person’s intentions, but I strive to deeply understand their words and communicate my opinions clearly based on that understanding.
From 2020, I was stationed in the United States for four years and served as the president of Sumitomo Electric Wiring Systems, Inc., which is a major base for the Sumitomo Electric Group in the automotive business. During the COVID-19 pandemic, I gained some bitter experiences in business management as a leader.
What I felt during this time is that management cannot be done alone. I found that, as a style for moving forward, listening to the words of the team members and exchanging opinions works best. I believe there are various management styles, depending on the person. But a team-based approach suits me well, and I was fortunate to have excellent colleagues who could make that happen.
PROFILE
Tokiji Aoyama
1987
Joined Sumitomo Electric Industries, Ltd.
Assigned to the Automotive Division.
2013
General Manager, 1st Sales Department, Sales Division (Western Japan)
2015
General Manager, Sales Division (Western Japan)
2020
President, Sumitomo Electric Wiring Systems, Inc. (U.S.)
Executive Officer
2024
Managing Executive Officer
Currently in this position.