" COLLABORATION, INNOVATION "

Economic growth has become slower than before due to various factors: increases in trade tariffs, policy uncertainty, supply chain disruptions, and tight global financial conditions. For the automotive industry, this means slow market growth, increasing cost pressure, but also significant opportunities to maintain ICE, to enter PHEB, and BEV.

Adaptive and efficient manufacturers will have an advantage. Automotive manufacturers must control costs more strictly: reducing product complexity, optimizing production, and possibly delaying or adjusting new model launches at lower cost.

Export and global production strategies need to be adjusted by considering tariff risks, alternative production locations, and local or regional component sourcing.

Based on the above conditions, we believe that all employees are aware of and understand the changes that are occurring. Therefore, with determination “Satu Aisin” can synergize our spirit and demonstrate our capabilities to succeed.

In 2025, there are still many things that we must improve, namely that basic rules have not been able to operate optimally, both on the shop floor and in administration. Many things have been implemented, but they are still not in line with what we expect in order to face future challenges. The initiation to start TPS Office with three themes is a good effort. This will be a good starting activity for all of us.

From 2025 to 2030, it can be said that there are no new projects. Therefore, this becomes an opportunity for us to develop human resources before we produce products. Development becomes a priority scale in our company, and it is expected to be completed in 2028 as a foundation to achieve operational excellence. The important points that become our focus are:

1. Strengthening shop floor management as an obligation that we must have so that we can move forward to the next activities.

2. Improving customer service and audit findings must be addressed together by changing the way of thinking and implementing the right organization in our workplace.

3. Conducting evaluations of loss-making products by improving cost structures and production processes, as well as seeking negotiation opportunities with our customers.

4. Continuing TPS Office so that we can optimize administrative activities.

5. A leaner organization that can adapt to change can make this company irreplaceable.

6. Competitiveness becomes the target so that the company can survive in facing an increasingly difficult future.

But we believe that with the spirit of “Satu Aisin” all of us can prepare a brighter future.

Mr. PB Ariawan Purwonugroho
President Director

(Reference to President's Letter in 2026)