Toyota Global recently bought 100% of Daihatsu’s stocks through an agreement called the “Unified Global Strategy.” The purpose is to boost the growth and value of both automotive brands, especially in the small car market.
To clarify, both Daihatsu and Toyota will still compete as separate entities in the industry, but will exchange vital technological and other beneficial strategies to keep each other afloat. Also, for every stock share that Toyota will obtain, they’ll hand over 0.26 of their own stock shares to Daihatsu’s other stakeholders. This is called “share exchange” and is expected to be completed by August 2016.
“This is an opportunity for us both (Daihatsu and Toyota) 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." - Toyota President Akio Toyoda
On the other hand, Daihatsu President Masanori Mitsui said that, “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.”
What both brand heads mean are these following areas of strategic collaborations.
Small cars – Having been in the small car business for quite some time now, Daihatsu will take the lead on this one. They’ll be contributing their small car manufacturing expertise in developing the compact vehicle models for both brands.
Technology – Both car brands will share technological advancements with one another. Toyota will contribute their expertise in environment conservation, automotive safety, user experience, and comfort. Daihatsu, on the other hand, will use their years of experience in converting ideas into components for vehicles. They’ll also share their knowledge in building cost- and fuel-efficient cars.
Operation – Both will share business operation strategies as well. Daihatsu will handle advancements in production process efficiency and adaptability. Meanwhile, Toyota’s well-established sales and infrastructures will be used to improve one another’s branding and profitability.