Exiting 2015 as the biggest auto manufacturer in the world, Toyota needs to strenghten its position in 2016, as Volkswagen will try to make a strong comeback with the Golf and Tiguan.
So Toyota decides to take a better look at Daihatsu. Both companies have reached an agreement whereby Daihatsu will become a wholly-owned subsidiary of Toyota by way of a share exchange (expected to be completed in August 2016).
The purpose of the agreement is to develop a unified strategy for the small car segment, under which both companies will be free to focus on their core competencies. Ultimately, this will help Daihatsu and Toyota to attain their joint goal of achieving sustainable growth.
Toyota and Daihatsu will engage in friendly competition and maintain separate management styles.
Toyota President Akio Toyoda said, "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."