In a not so surprising move Toyota has confirmed its hundred percent Daihatsu acquisition through a share exchange which will be completed by August this year.
Through the exchange, Daihatsu will become a wholly owned subsidiary of Toyota (previously Toyota owned 51% shares). The agreement aims to aid both companies in achieving sustainable growth while focusing on their core competencies. The companies will adopt a unified global strategy to strengthen the small car segment.
Both brands will benefit from the agreement through synergistic efforts in research and development and entry into new business areas with significant potential. It will also speed up resource-intensive endeavours such as next-generation vehicle platforms. The management of Toyota and Daihatsu will remain distinct in order to take full advantage of the unique capabilities and strengths of both firms.
Toyota’s global sales in 2015 were about 10.15 million units, down by 0.8 percent from 2014. Hopefully, after Daihatsu acquisition the figure would improve.