Toyota considering Daihatsu buy out; denies Suzuki tie-up rumors

Toyota considering Daihatsu buy out; denies Suzuki tie-up rumors image

Text: Eric Tipan / Photos: Toyota, Daihatsu | posted January 28, 2016 11:41

No partnership with Suzuki but Daihatsu buyout possible for Toyota

As Toyota soared to become the world’s number one automaker, selling more than 10 million units in 2015, they’ve got one eye on the future and that is the full acquisition of another Japanese auto brand.

Daihatsu is Japan’s oldest automaker, known for their small cars and off-road trucks. These products have decreased in production and sales in Japan, especially in 2015, based on a report published by Toyota, but it has seen continued success in sales and production overseas.

Toyota already owns 51.2-percent of Daihatsu but plans to make it a wholly owned subsidiary of Toyota Motor Corporation in order to have more control of the decision-making within the company and bolster its reach in emerging markets where small cars and affordable off-road trucks are in high demand.

"We are constantly considering a number of possibilities relating to Daihatsu, such as partnerships or business restructuring, including making the company a fully-owned subsidiary. However, at this point, no decisions have been made," Toyota said in a statement.

Trading for Daihatsu shares were suspended after the reported Toyota buyout came out.

Toyota denies alleged partnership with Suzuki

In a report by Nikkei Asian Review, Toyota was rumored to be striking up a partnership with Suzuki Motor Corporation to focus on automotive safety technologies and environmentally friendly vehicles.

Toyota is eyeing a foothold in the rapidly growing Indian automotive market of which Suzuki has a 40-percent share, brought about by low-cost vehicle production.

Suzuki on the other hand, benefits by receiving major technological gains that will bring their research and development up to speed with the latest in hybrid, fuel cell and EV tech as well as automotive safety, comfort, entertainment and performance.

But both companies have issued separate statements categorically denying the report by Nikkei Asian Review, describing it as untrue.

According to a report by Reuters, Suzuki Motor Corporation said that the company was not discussing a partnership with Toyota Motor Corporation.

"It is not true that we have entered negotiations over a tie-up with Toyota," Suzuki Motor Corp. said in a statement.

Toyota, on the other hand, issued a similar statement.