Toyota Acquires 100% of Daihatsu

Toyota Motor Corp., which already owned 51% of Daihatsu Motor Co., has purchased the company outright through an equity swap.

Toyota announced the acquisition plan in January. The companies formed an alliance in 1967 when Toyota bought a 33% stake in the minicar specialist. Toyota boosted its equity to 51% in 1998 and made the company a subsidiary.

The takeover is intended to improve Toyota’s competitiveness in emerging markets. Daihatsu does well in Japan’s domestic minicar market but has a limited presence overseas.

Toyota President Akio Toyoda concedes his company hasn’t been able to establish a "significant presence in minicars.” He hopes gaining full control of Daihatsu will enable Toyota to implement the latter company’s superior expertise in cost management.