Toyota Group Companies: Toyota and its group of companies are gearing up for a significant move, planning to trim their holdings in Denso, a crucial auto supplier. The strategy involves selling roughly 10% of Denso’s shares, amounting to around $4.7 billion, by the end of the year. This anticipated sale aligns with Toyota’s broader agenda of shedding cross-shareholdings as it intensifies its focus on producing battery electric vehicles (BEVs).
As of the end of September, Toyota holds about 24.2% of Denso. Even after this substantial sell-off, Toyota is poised to retain its position as the top shareholder in the company. The Japanese automaker is on a trajectory to divest from various holdings, part of its overarching plan to concentrate efforts and resources on the development and production of BEVs. This move comes on the heels of Toyota’s announcement in July about selling a stake worth approximately 250 billion yen in telecommunications company KDDI Corp.
Denso, being a critical supplier to Toyota, is preparing for potential impacts on its share price resulting from the sale. To counteract these effects, Denso is reportedly planning to buy back some of its own shares in the open market. While both companies have refrained from official comments on the reported share sale, the move underscores a broader trend in the Japanese corporate landscape. Companies have been gradually unwinding cross-shareholdings, spurred by initiatives from the Tokyo Stock Exchange urging them to optimize their capital utilization.
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The initial response in the stock market was notable, with Denso’s shares experiencing a dip of almost 4% before the news broke. Subsequently, the shares extended losses, falling as much as 6.8% during the day and closing 4.9% lower. In contrast, Toyota’s shares remained relatively stable, along with the benchmark Nikkei 225 index.
This strategic realignment by Toyota is reflective of a broader transformation within the automotive industry. As the world’s leading automaker, Toyota’s maneuvers serve as significant markers for the industry’s trajectory, particularly in the context of the ongoing global shift towards electric and sustainable mobility solutions. The sale of Denso shares is anticipated to attract primarily domestic investors, and the exact pricing details are yet to be determined.
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As a member of the Toyota Group, Toyota Tsusho is part of a family of 17 companies that includes Toyota Motor, Aisin Seiki, and Denso. Other members of the group include Toyota Boshoku, Hino Motors, and Daihatsu Motor. Toyota Tsusho benefits from the collective expertise and resources of the group, which allows it to provide high-quality products and services to its customers. With a focus on innovation and sustainability, Toyota Tsusho is committed to driving progress and creating value for its stakeholders.
What companies are associated with Toyota?
The Toyota group comprises of several companies including Toyota Industries Corporation, Toyota Motor Corporation, Aichi Steel Corporation, JTEKT Corporation, Toyota Auto Body Co., Ltd., Toyota Tsusho Corporation, AISIN CORPORATION, and Denso Corporation. These companies work together to provide high-quality products and services to customers worldwide. With a focus on innovation and sustainability, the Toyota group continues to lead the automotive industry and beyond.
What companies are in the Toyota Group?
The Toyota Group is a conglomerate of companies that includes Hino Motors, Ltd., established in May 1942, DAIHATSU MOTOR CO., LTD., established in March 1907, TOYOTA HOUSING CORPORATION, established in April 2003, and TOYOTA MOTOR KYUSHU, INC., established in February 1991, among others. With a rich history spanning several decades, the Toyota Group has established itself as a leading player in the automotive industry, with a focus on innovation, quality, and customer satisfaction.