Photo: Daihatsu
Toyota will buy all the Daihatsu shares it does not already own by August 2016.
The world’s number 1 carmaker already owns a majority stake of 51.2% in Daihatsu and has announced an agreement to acquire all the other 48.8% of Daihatsu shares in the coming months. The Japanese brands have not released the price for their transaction, but the cost is estimated at around $3 billion.
The buyout is going to benefit both companies, as Daihatsu will become part of Toyota’s small car strategy. The brand will be focused on fuel efficiency and lowering costs for the users.
The two entities will work together in emerging markets, especially in those where Daihatsu has a strong presence and brand image. Toyota will get the chance to focus more on safety, protecting the environment, improving comfort and user experience.
Since Daihatsu will be focused on reducing costs, its models will probably feature Toyota technology at a lower cost. The decision to acquire the entire Daihatsu shares package allows Toyota to strengthen its position as the world’s largest carmaker by improving its presence in emerging markets.
With a fresh infusion of Toyota parts, Daihatsu cars may become even more attractive to customers in emerging markets. In some countries, it is more important for the client to be able to afford a new car than the features that particular vehicle is fitted with.
In India, for example, the Tata Nano was supposed to stop families from traveling on motorcycles and scooters with sidecars and make the transition to a car.
While Toyota and Daihatsu haven’t explicitly expressed their desire to put every potential customer in one of their cars in the coming future, they have specified their expectations for a new period of growth.
Masanori Mitsui, Daihatsu President, sees the acquisition of the company he leads as an opportunity to “cement their relationship with Toyota, and to elevate the Daihatsu brand to a global standard.”
Poor sales made the Japanese brand retire from the European market, while the US market didn’t prove successful for Daihatsu either.
The buyout is going to benefit both companies, as Daihatsu will become part of Toyota’s small car strategy. The brand will be focused on fuel efficiency and lowering costs for the users.
The two entities will work together in emerging markets, especially in those where Daihatsu has a strong presence and brand image. Toyota will get the chance to focus more on safety, protecting the environment, improving comfort and user experience.
Since Daihatsu will be focused on reducing costs, its models will probably feature Toyota technology at a lower cost. The decision to acquire the entire Daihatsu shares package allows Toyota to strengthen its position as the world’s largest carmaker by improving its presence in emerging markets.
With a fresh infusion of Toyota parts, Daihatsu cars may become even more attractive to customers in emerging markets. In some countries, it is more important for the client to be able to afford a new car than the features that particular vehicle is fitted with.
In India, for example, the Tata Nano was supposed to stop families from traveling on motorcycles and scooters with sidecars and make the transition to a car.
While Toyota and Daihatsu haven’t explicitly expressed their desire to put every potential customer in one of their cars in the coming future, they have specified their expectations for a new period of growth.
Masanori Mitsui, Daihatsu President, sees the acquisition of the company he leads as an opportunity to “cement their relationship with Toyota, and to elevate the Daihatsu brand to a global standard.”
Poor sales made the Japanese brand retire from the European market, while the US market didn’t prove successful for Daihatsu either.
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