Daihatsu becomes wholly-owned Toyota subsidiary
Toyota has fully acquired subsidiary Daihatsu, setting the stage for deeper collaboration between both companies.
Claimed to be Japan’s oldest automaker, Daihatsu is already majority owned by Toyota. The latter company will acquire the remaining minority stake in a share exchange, expected to be worth around $3 billion USD.
“The purpose of the agreement is to develop ever-better cars by adopting a unified strategy for the small car segment, under which both companies will be free to focus on their core competencies,” Toyota said in a statement. “Ultimately, this will help Daihatsu and Toyota to attain their joint goal of achieving sustainable growth.”
The brands will continue to engage in ‘friendly competition’ and maintain separate management structures, but with a shared strategy that could benefit from co-development and global growth.
Best known for its minicars, Daihatsu currently sells its own models in Japan and builds Toyota-badged adaptations. The subsidiary is said to have struggled in a price war against rival Suzuki last year, according to Bloomberg. Interestingly, a Nikkei report claims Suzuki and Toyota are involved in talks to form a potential global alliance.