Toyota Motor to raise Fuji Heavy Industries stake to 17 percent
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Toyota Motor to raise Fuji Heavy Industries stake to 17 percent
Toyota Motor to raise Fuji Heavy Industries stake to 17 percent
http://www.forbes.com/markets/feeds/...fx4842041.html
TOKYO (Thomson Financial) - Japan's largest automaker Toyota Motor Corp. has decided to boost its stake in Fuji Heavy Industries Ltd. from 8.7 percent to around 17 percent, the Nikkei reported on Wednesday without citing sources.
The Nagoya-based Toyota (nyse: TM - news - people ) will buy 64.25 million shares in the maker of Subaru brand vehicles for some 30 billion yen, the business daily said.
These shares, which account for 8.2 percent of Fuji Heavy's outstanding shares, are currently held by the company as treasury stock.
The deal is expected to be scrutinized by the Fair Trade Commission, the report said.
But Toyota currently has no plans to turn Fuji Heavy into an equity-method subsidiary, keeping its stake under 20 percent, it said.
Toyota will also consider subcontracting production of cars, centering on subcompact mass market models, to Fuji Heavy's factory in Ota, Gunma Prefecture.
In addition, the two companies will jointly develop a sports car and other new models as well as environmental technologies.
The Nagoya-based Toyota (nyse: TM - news - people ) will buy 64.25 million shares in the maker of Subaru brand vehicles for some 30 billion yen, the business daily said.
These shares, which account for 8.2 percent of Fuji Heavy's outstanding shares, are currently held by the company as treasury stock.
The deal is expected to be scrutinized by the Fair Trade Commission, the report said.
But Toyota currently has no plans to turn Fuji Heavy into an equity-method subsidiary, keeping its stake under 20 percent, it said.
Toyota will also consider subcontracting production of cars, centering on subcompact mass market models, to Fuji Heavy's factory in Ota, Gunma Prefecture.
In addition, the two companies will jointly develop a sports car and other new models as well as environmental technologies.
http://www.forbes.com/markets/feeds/...fx4842041.html
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Joined: Jan 2005
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From: A better place
Interesting, this gives a lot of credibility to the rumoured Toyota/Subaru sports car. Toyota would not raise their stake in Subaru unless they were planning closer collaboration with them. Great to see Toyota making good use of their stake. I've long respected Subaru's engineering prowess so this looks like a good relationship between the two companies.
If Subaru touts its technology, performance, gas efficiency, and safety (is it gas efficient and safe?
); I think they'll catch attention. Until then, Subaru has a lot to change with its public image.
Lead Lap
Joined: Jun 2006
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From: MD
I think Subaru is hurting in general because no one really knows much about them other than having AWD standard.
If Subaru touts its technology, performance, gas efficiency, and safety (is it gas efficient and safe? ); I think they'll catch attention. Until then, Subaru has a lot to change with its public image.
If Subaru touts its technology, performance, gas efficiency, and safety (is it gas efficient and safe?
); I think they'll catch attention. Until then, Subaru has a lot to change with its public image.I think they are really hurting from the new EPA tests. They don't meet CAFE standards where as before they were good for 30 mpg. My own does 32 mpg hwy. But if you get a turbo Legacy its rated at 24 hwy. Too much boost at 80 MPH.
They really need to beef up their advertising and let people know they these are safe, powerful, reliable cars. Kinda like how people have caught on to Audi, minus the reliability thing.
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Mar 31, 2005 09:51 PM
bb, cars, engineering, fuji, gunma, heavy, industries, ken, outstanding, prowess, sale, shares, subaru, toyota
