In a bid to strengthen its small car portfolio, Toyota Motor Corporation has reached out to its subsidiary Daihatsu Motor to share resources and in the process acquire the smaller carmaker.
The entire process is slated to be completed in August 2016 and the purpose of the agreement is to develop better smaller cars by adopting a unified strategy where both companies will be free to focus on their core competencies. According to sources, this will leverage the advantages of both brands, allowing the development of attractive products that are competitive on a global basis.
Daihatsu President Masanori Mitsui commented, "I believe we have now found a course of action that will enable us to continue our growth for the next 100 years. 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 standard." While the differentiation between Toyota's and Daihatsu's brands will continue, Daihatsu will take the lead in developing products offered within the small car line ups of both brands.Toyota's focus will remain on technologies related to the environment, safety, user experience and comfort; while Daihatsu will continue to leverage its aptitude for turning technologies into packages for vehicles, as well as developing cost and fuel efficient technologies.
Toyota's sales expertise and infrastructure in the Japanese arena will be utilised by both companies to improve Daihatsu's branding and profitability.
