American Executives Rising in Ranks at Japanese Auto Companies

Aisin Seiki Co. Ltd., a leading Japanese auto parts supplier and partly owned by Toyota Motor Corp. the producer of high quality Toyota Corolla parts has chosen for the first time an American to head its US operations. This is part of the latest series of promotions of US executives at Japanese auto companies.

Aisin Seiki is expected to announce the name of Don Whitsitt, who is a 19-year veteran of the company and has been appointed president of Aisin World Corp. of America, based in Plymouth.

The appointments of American executives to high positions in Japanese automakers are the result of shortages of Japanese managers. According to George Peterson, president of consultant firm AutoPacific Inc. in Tustin, California, “The Japanese used to be very chauvinistic about using people of their own nationality but that's loosening up. The engineering and management resources of many Japanese companies are getting stretched. They're also finding that the best thing for them is to find the best and brightest managers," regardless of nationality."

Last year Honda has promoted Frank Paluch to head Honda R&D Americas’ engineering and design division, which has produced a third of the vehicles sold in the region. Honda spokesman David Iida said, "This speaks to the maturity of Honda's local development capabilities."

The increasing numbers of American executives at Japanese companies also signifies the importance of the US market to their bottom line. It is no secret that Toyota, Honda, and Nissan generate more than half of their earning in North America.

In what seem to be a symbolic move Toyota has also appointed its highest-ranking North American executive, Jim Press the very first non-Japanese member of its board last June.

Aisin Seiki part of Toyota’s network of affiliated companies contributes nearly fifth of its $20.2 billion in annual global ales in North America. The Aisin World Corporation of America has 28 manufacturing, sales, and research facilities in North America and about 10,000 employees. Last 2005 it opened a vehicle probing ground in Fowlerville.

Whitsitt in an interview with The Detroit News last Monday said, "As we expand in North America, we'll localize production more and more, not just with our content but with our suppliers."

He also added that Aisin aimed to expand its North American operations and at the same time diversify its customer base. At present Toyota is still the biggest client of Aisin World Corp. of America accounting to the company’s 50 to 60 percent of revenues. General Motors is also a client of Aisin World Corp.

Whitsitt will be replacing Jurichi Nishimura who will return to Japan to take care of the company’s global sales.