Autos

Daihatsu Will Be Wholly-Owned By Toyota Come August 2016

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Toyota is growing stronger and bigger than ever. The world’s largest automaker has confirmed that it will be purchasing all of Daihatsu’s shares by 1st of August 2016.

The company has already owned 51.2 percent of the stocks of its mini vehicle subsidiary, so this would undoubtedly confirm Toyota in taking over whatever’s left of Daihatsu; fully owning the company.

As part of the deal that could be worth around $3 billion, Toyota will re-organize all of Daihatsu’s shares on July 27 and hopes to increase the value of both brands. Additionally, making it a complete subsidiary of Toyota will also allow the brand’s small cars to adopt a unified strategy. That being said, Daihatsu will still be able to take the lead in developing the small car model range for both automakers.

According to a statement by Toyota president Akio Toyoda, he said: “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.”

It should come as no surprise as Toyota will want to retain its first spot on the list. But do you think it could stay on top for long?