Toyota Motor Corporation finally bought its subsidiary Daihatsu Motor Co., Ltd., which will took over the development of the smaller cars segment, but will also have an access to Toyota’s technology. With this acquisition Toyota guarantees itself even more stable position in the global market. Will Toyota now become globally unattainable for Volkswagen and General Motors in terms of selling numbers?

Daihatsu was controlled by Toyota since 1988

Toyota acquired controlling, 51-percent share in Daihatsu back in 1988. Daihatsu in its present form exists in the automotive market since 1951.

As the Toyota management announced days ago, they have now decided to fully assume Daihatsu. Both companies have signed a reciprocal agreement, according to which they will have the mutual sharing of technology and established sales and service network.

Daihatsu will develop primarily the segment of the small city car, both for itself and for Toyota brand, which means the Japanese will be even more competitive in developing countries. Concrete plans to expand the Toyota model range are yet still unknown, but this expansion certainly means a more stable place in the global automotive market. Last year, Toyota again took first place among car manufacturers. They sold over 10 million vehicles in 2015.

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.”

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.”

Image credit: Toyota