Toyota Motor Corp. said the item was considering buying the rest of the minivehicle maker Daihatsu Motor Co., a deal 3.2 billion $ at current market prices, yet denied a report the item was in partnership with Daihatsu talks rival Suzuki Motor Corp.
full control over Daihatsu can help influence the Toyota brand less expensive better as well as also also reduce procurement costs Daihatsu, while the capitalist relations with Suzuki would certainly help Toyota to make their way to India, where Suzuki commands about half of the passenger car market.
said, “We are studying constantly many possibilities regarding Daihatsu, such as partnerships or business restructuring, including creating the company a wholly owned subsidiary of the company,” Toyota said in a statement, yet added of which the item does not There have been creating decisions.
Toyota owns 51.2 percent of Daihatsu, which like Suzuki, specializing in minivehicles 660cc, a certain segment to Japan, as well as compact cars.
[hesaid business Nikki newspaper said Toyota as well as also also Suzuki have been discussing relations through a variety of angles, including the possibility of acquiring shares through as they look to take advantage of the demand for little cars in India as well as also also various other emerging economies.
risks as well as also also benefits
observed some analysts of which the greater control of Daihatsu could be otherwise possible cooperation with Suzuki with considering of which the makers minivehicle two fierce competitors for the same customers.
“I can see easily brand Daihatsu used inside same way of which VW used Skoda or Renault used Dacia or April uses said CLSA senior research analyst Christopher Richter Datsun as a low-cost, brand subcontractors in addition to brand core business. ” “of which can be a very effective weapon against Suzuki in places like India … if you Suzuki would certainly seem like a risk to deal with Toyota.” He noted
Still, others of which Toyota Suzuki potential partnership could benefit both automakers.
Suzuki, through its control of Maruti Suzuki India, features a wide distribution network in India of which Toyota can greatly benefit through.
Analysts said JP Morgan “, Suzuki will be at the same time to get a stable shareholders at Toyota, as well as access to the HEV Toyota / FCV as well as also also environmental technologies, the next generation again directed towards the electrification of future car.” in a note
Suzuki is actually expected, however, to tread carefully with any of the brand new alliances. the item formed an alliance with the capital of the Volkswagen Group in early 2010, yet relations soon soured, leading to an ongoing conflict inside years since the Court of Arbitration, which ended last year with their dismantling of cross-ownership of shares.
[rose Daihatsu shares 16 percent today in Tokyo after being overwhelmed by buy orders for more than a day. Suzuki shares jumped 11 percent despite denials through both Toyota as well as also also Suzuki. Toyota rose 3.8 percent.
inside past year, Daihatsu weakest link inside group Toyota, which also includes the Toyota as well as also also Lexus brands, trucks, Hino Motors Maker .
declined Global sales of Daihatsu 13.3 percent in 2015, showed data released today. Which pushed the total Toyota reduced group sales 0.8 percent to 10.15 million, although retaining the title of the biggest car producer inside globe group, surpassing Volkswagen sales Wagon 9930000.
was Daihatsu bestsellers little cars in Japan over the past nine fiscal years, controlling about 31 percent of the market inside first half of the annual period ending in March.
has Daihatsu also a leader in Southeast Asia site markets
of which Daihatsu creating little cars branded Toyota in 2011 as well as also also also builds vehicles for mother Indonesia. The company was also the industry’s best-selling cars in Malaysia for nine consecutive years through 2014.
Daihatsu traces its beginnings to March 1907, when two academics as well as also also a group of businessmen to establish a company in Osaka, the second largest city in Japan, for the production of internal combustion engines. The company changed its name to Daihatsu Motor Co. in December 1951.
Toyota tied first with Daihatsu in 1967 as well as also also features a majority stake since 1998 of which