News - Toyota
Toyota buys remaining Daihatsu shares
That’s who: Toyota president Akio Toyoda at the signing of the agreement with Daihatsu in Japan.
Daihatsu to focus on small cars in emerging markets after Toyota buyout
5 February 2016
TOYOTA Motor Corporation has taken full control of Daihatsu Motor Co through a
share exchange, in a deal designed to give Toyota a bigger footprint in
emerging markets via Daihatsu’s small cars.
Before the take-over, Toyota owned a 51.2 per cent stake in Daihatsu, and to
acquire the remaining shares it will swap 0.26 of its own shares for every
share in Daihatsu which will then be delisted come July 27, 2016.
According to Toyota, the deal – said to be worth $US3 billion ($A4.1b) – will
help produce a “unified strategy” for its small car line-up where both brands
will continue to focus on their respective areas of strength.
While the two brands will continue to “engage in friendly competition”, and
maintain their distinct management styles, the deal will help reduce the cost
of technology development and entry into new segments or markets.
Daihatsu will “take the lead” in developing small-car line-ups for both brands
and it will continue to focus on its core mini or ‘kei’ car know-how.
Development costs for new technologies will be shared, and while Toyota will
continue to focus on environmentally friendly tech, as well as the areas of
user experience and comfort, Daihatsu will “leverage its aptitude for turning
technologies into packages for vehicles, as well as developing cost- and
“Daihatsu will also contribute to the development of next-generation
technologies from the perspective of cost-efficiency and miniaturisation,” the
“The company's specialised car manufacturing expertise will be shared within
the Toyota Group, which will contribute to further enhancing the cost
competitiveness of larger vehicles.”
The brands will use each other’s bases in emerging markets to keep costs down,
while in Japan, Daihatsu will use Toyota’s sales infrastructure and expertise
to help lift its brand.
Daihatsu produces kei cars and minivans for the Japanese domestic market and
some smaller markets, with models including the Move, the Materia and the Mira.
Global sales of Daihatsu models took a dive last year, dropping 13.3 per cent
compared with 2014, to 794,000 units.
Speaking at the announcement of the deal in Japan this week, Mr Toyoda said the
deal with Daihatsu would help both companies achieve sustainable growth.
“This is an opportunity for us both to stop feeling that we need to go it
alone, and trust each other to take full advantage of our respective
strengths,” he said. “In other words, we can now focus on our core
competencies. That, I believe, is the key to achieving and sustaining global
Daihatsu president Masanori Mitsui added that the strong connection with Toyota
would lift the brand globally.
“I believe we have now found a course of action that will enable us to continue
our growth for the next 100 years,” he said. “We see this as the perfect
opportunity to cement our relationship with Toyota, and, by doing so, to embark
on a new period of growth, and to elevate the Daihatsu brand to a global
The small Japanese brand arrived in Australia in 1975 but was shut down by
Toyota in 2005 after slowing sales in an increasingly competitive new-car
Throughout the 1980s and 90s Daihatsu sold models such as the Charade,
Applause, Sirion and Copen convertible Down Under as well as quirkier fare
including the high-riding Terios, YRV and Pyzar.