Toyota Daihatsu Becomes One for $3 Billion to Share Each Other Pluses

MANILA: Toyota Daihatsu are finally one, the latter has become a fully owned subsidiary of the former, after it paid a whopping price of $3 billion. Well, Daihatsu since 1988 had shared some close ties with Toyota, as back in 1988 it cylindered 51 percent of its controlling power to the auto giant. Now, after twenty-eight years, 100 percent Daihatsu shares are now under Toyota Motor Crop., meaning that Toyota will be taking all its decisions ranging from the minor to major ones.

Now an important piece of information for the Daihatsu shareholders, as per the paperwork and official statements, for each Daihatsu share you will be eligible for 0.26 share of Toyota. Its delisting is most probably planned for July 27, 2016, and the consummation of share exchange is effective from 1st August 2016. And by the end of June when the annual general meeting of Daihastu is planned, exact dates and action will be further clear.

Both Daihatsu and Toyota will gain from this found relationship, with three key focus area now being small cars, operation and technology. Daihatsu will continue building small compact cars, as the brand is known for the same and will thrive to develop new technologies for the same. At the technology front, Toyota's main focus will remain on developing green, safe, comfortable and user-friendly cars. Daihatsu, on the other hand, will concentrate on building cost-effective and advanced compact cars.

Masanori Mitsui, President Daihatsu said that this new found relationship will enable it grow for 100 more years and let it achieve what it has never been able to since 1951.

On the other hand, for Akio Toyoda aka CEO of the Year, “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. In other words, we can now focus on our core competencies. That, I believe, is the key to achieving and sustaining global competitiveness."

Thus, as for now Toyota will engage itself in building crossovers and sport utility vehicles like the all-new 2016 Fortuner (recently launched in the Philippines), 2016 Hiace (with the new 3.0L engine) and 2016 RAV4. While, Toyota wholly owned subsidy will concentrate on manufacturing small Eco-friendly, traffic cutting cars.

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