Toyota buys all of Daihatsu

As forecast last week, Toyota has made a move to wholly acquire Daihatsu via a share exchange scheme.

The scheme will see Toyota increase its hold of the smaller brand to 100 per cent from its current 51.2 per cent. The share exchange is expected on August 1, 2016 and is expected to transfer over 54 million shares.

The arrangement identifies three areas of strategic collaboration, including Small Cars, Technology and Operations, though there will remain a differentiation between the respective brand’s products, referred to as ‘friendly competition’ in the news release.

Daihatsu will take the lead on product development within the smaller vehicle segments with further development on the ‘mini-vehicles’ offered.

Technology sharing is also key with Toyota’s focus remaining on environmental, safety, user experience and comfort issues, while Daihatsu is expected to develop efficient packaging, cost and fuel efficiencies.

In emerging markets both brands will use each other’s operational bases, while within Japan Toyota’s sales and infrastructure expertise will be utilised for both brands to make the group more profitable.

What does this mean for Australia? The streamlining effect of the acquisition and the associated cost cuttings – as well as the focus on small vehicles -- could build a viable case for Daihatsu to re-establish an Australian presence, something it hasn’t had since 2006.

"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," explained Toyota President Akio Toyoda.