Toyota to lift Subaru stake to 20pc
Toyota Motor Corp will raise its stake in Subaru Corp to 20 per cent from around 17 per cent, said the two Japanese carmakers yesterday, as they leverage their scale to better compete in developing new vehicle technologies.
The investment comes a month after Toyota and another smaller Japanese carmaker, Suzuki Motor Corp, said they would take small equity stakes in each other.
Such tie-ups highlight how carmakers are scrambling to chase scale, manage costs and boost development required to develop self-driving cars, electric vehicles and new mobility services which are upending the auto industry.
“In this once-in-a-century period of profound transformation, by strengthening their bonds and aligning their capabilities, Toyota and Subaru aim ... to make ever-better cars,” said Toyota in a statement.
Traditional carmakers, especially smaller ones such as Subaru and Suzuki, are struggling to meet the fast pace of change in an industry that is shifting to a business model of providing transportation services from simply selling cars to drivers.
In a statement, Toyota, whose annual global vehicle sales are 10 times that of Subaru, said its investment would amount to up to 80 billion yen (RM3.1 billion) based on Subaru’s stock market value. The smaller carmaker will reciprocate by buying a stake in Toyota of equal value.
Yesterday’s deal cements Subaru’s place in Toyota’s expanding group of Japanese partners, which include Mazda Motor Corp and Yamaha Motor Co.
Rival Nissan Motor Co has an alliance with France’s Renault, although that has been shaken following the ouster of former chairman Carlos Ghosn, and with Mitsubishi Motors Corp.
Honda Motor Co has a tie-up with General Motors .