Latest news with #ToyotaGroup
Japan Times
15 hours ago
- Automotive
- Japan Times
Toyota Industries shareholders question buyout at annual meeting
Toyota Industries held what could be its last annual meeting as a public company, after the Toyota group unveiled plans to privatize the maker of forklifts, textile looms and auto parts. While the ¥4.7 trillion ($32.4 billion) buyout bid by an entity led by Toyota Motor Chairman Akio Toyoda wasn't formally on the agenda Tuesday, it overshadowed the gathering near Nagoya, Japan, as shareholders aired their grievances and sought clarity about the proposal. The Toyota group's plan to privatize Toyota Industries, the original company that birthed the world's largest carmaker, has drawn sharp criticism from investors and analysts since it was announced a week ago. They argue that the planned tender offer of ¥16,300 per share is too much of a discount on the shares and doesn't represent the intrinsic value of the business. Koichi Ito, chief executive officer of Toyota Industries, fielded back-to-back questions from shareholders who sought explanations for why the deal was opaque, and why the planned buyout offer fell short of the company's market value. "Its incredibly unfortunate that Toyota's original business is joining the group and squeezing out its shareholders,' one investor said. Another added, "I don't think I'm alone in feeling the price was low.' Toyoda will probably face similar questions when Toyota Motor holds it annual meeting later this week. The privatization of Toyota Industries could resolve a parent-child structure that has been criticized in the past, and is also in line with the Japanese government's push to resolve such relationships. At the same time, a takeover may give Toyoda greater influence over the manufacturing group at a price that risks alienating stakeholders. "We chose this path as a new step forward for the company,' Ito said at the annual meeting. "We hope to gain everyone's understanding and support.' All of the company's proposals, including the Toyota Industries board members up for reelection, were approved on Tuesday. The meeting was the longest in its history, and also had the most number of questions by shareholders ever, according to the company. Toyota Fudosan, which is owned by 15 companies within the Toyota group, will mostly own Toyota Industries via a holding company once the deal is completed. Toyoda, who is also the real estate firm's chairman, will personally invest ¥1 billion into the acquiring entity as well. "The Toyota group companies wanted to demonstrate to investors that they had been listening to their concerns and were now willing to unwind their cross-shareholdings,' said Julie Boote, an automotive analyst at London-based research firm Pelham Smithers Associates. "This move backfired, because the cross-shareholdings remain in place, indirectly.' The proposed buyout has drawn more attention to Toyota Fudosan, which itself holds more than ¥1 trillion in shares across the Toyota group. Toyota Fudosan is known as a real estate company with prominent buildings such as Midland Square, a skyscraper near Toyota Motor's headquarters in the city of Nagoya. Toyoda has been chairman of Toyota Fudosan since 2015, and before that, the position was held by his father, Shoichiro. The real estate business is effectively acting as a holding company, according to Kenta Kon, a former Toyota Motor chief financial officer who holds key positions at group companies, including Toyota Fudosan. The planned tender offer for Toyota Industries includes funding from Toyota Motor. The country's top banks — Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group — will also together lend ¥2.8 trillion to the acquisition company to support the buyout. Toyoda defended the deal in an interview published Friday on the company's media site, pushing back against criticism by investors and analysts who say the terms hand over too much for too little. The grandson of Toyota Motor's founder denied that the plan was designed to strengthen his family's grip on the business group, and said the real goal is to restore the group's identity and help it overcome seismic changes in the global automobile industry.
Yahoo
5 days ago
- Automotive
- Yahoo
US vehicle market slows as industry braces for tariffs impact
Sales Summary According to preliminary estimates, US Light Vehicle (LV) sales grew by 1.5% year-on-year (YoY) in May 2025, to 1.46 million units. May 2025 had one extra selling day compared to May 2024, meaning that sales fell by 2.2% YoY on a selling day-adjusted basis. The daily selling rate was measured at 54.2k units/day in May, down from 56.7k units/day in April. The annualized selling rate was estimated at 15.3 million units/year in May, down from 17.4 million units/year in April. Retail sales were estimated at 1.2 million units, up by 2.2% YoY, while fleet sales were thought to total 261k units, down by 1.6% YoY. OEM Analysis GM once again led the market, with total sales of 258k units and a market share of 17.6%. However, a notably strong performance from Toyota Group meant that the gap between the Japanese OEM and GM was under 18k units in May, the smallest difference since April 2024. Toyota Group's volumes (240k units) were its highest since May 2021. Even more remarkable was Ford Group, which enjoyed its highest monthly sales total since May 2019, with 215k units sold. At a brand level, Toyota led the rankings – as has been the case in each month of the year to date – on 207k units. However, Ford was close behind on 203k units, with Chevrolet in third on 163k units. Model Analysis For a second consecutive month, the Ford F-150 led the sales rankings, on 46.3k units. The Toyota RAV4 came in second, on 45.3k units, while the Chevrolet Silverado claimed third place in May, on 40.8k units. This was the first time since October 2024 that the Silverado had occupied such a lofty position. The Honda CR-V and Toyota Camry completed the top five. The Camry made its first appearance in the top five bestselling models since February 2023. Segment Analysis Compact Non-Premium SUV's market share was 21% in May, according to initial estimates, its lowest share of the year to date. However, the segment's market share was still up by 0.6 pp YoY. Midsize Non-Premium SUV accounted for 15.6% of the market in May, down around 0.2 pp from its April share, while Large Pickup enjoyed its highest share of 2025 so far, on 14.5%. Indeed, only one month since the beginning of 2023 (December 2024) has seen the segment claim a larger share of the total market. Enticing offers on models such as the Silverado seem to have driven an improved performance for Large Pickups. David Oakley, Manager, Americas Sales Forecasts, GlobalData, said: 'While sales in May were not poor by any means, the month's results were a reflection of the way we have been expecting the market to develop since the picture regarding tariffs started to take shape. After the initial surge in sales activity in March and April, the decline in the selling rate in May appears to indicate that many of those consumers who decided to pull purchases ahead to avoid potential tariff-related pricing increases have now done so. We are also observing sharp differences in performance between OEMs. Certain automakers are starting to see problems with low inventory, which in some cases may be linked to hesitancy over how to respond to the imposition of tariffs. Similarly, brands that have tended to rely on fleet sales to boost volumes may be struggling in the current circumstances, as a higher priority is being put on more profitable retail sales – but retail sales depend to a great extent on the curb appeal of the models themselves. Finally, Premium makes are also seeing somewhat more subdued sales, although the reasons for this are varied. An over-reliance on EVs is a significant headwind for some brands, while others may be suffering from economic uncertainty andtariff-related disruption'. Forecast Updates We currently expect 2025 sales to come in at around 15.2 million units, down from almost 16 million units in 2024, and representing a YoY decline of around 5%. While the extent to which sales will slow in June remains to be seen, we forecast the YoY comparison to turn negative, as prices increase and supply chain problems start to ramp up. The second half of the year is set to see a more significant slowdown in sales, as OEMs gradually adjust pricing to reflect the new realities of the trade environment. Still, the situation remains extremely fluid, and changes in the administration's policy could mitigate the worst effects of tariffs, in which case there is some upside risk to our forecast. This article was first published on GlobalData's dedicated research platform, the . "US vehicle market slows as industry braces for tariffs impact – GlobalData" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Japan Times
6 days ago
- Automotive
- Japan Times
Toyota Industries buyout hinges on squeezing minority investors
Widespread criticism of the Toyota group's ¥4.7 trillion ($33 billion) plan to privatize Toyota Industries at a large discount to the company's current share price is fueling doubts over whether the takeover bid can garner enough support to succeed. The tender offer by the holding company established to privatize Toyota Industries represents an 11.4% discount to Toyota Industries' closing price before the plan was announced. In order for the buyout to work, the ¥16,300-per-share tender offer will need to attract enough minority shareholders to cross a 42% threshold, excluding shares already held by Toyota Motor and treasury stock. That translates into more than 20% of issued stock in the maker of textile looms, forklifts and car components. Once the takeover group led by Toyota Motor Chairman Akio Toyoda buys enough shares, and other Toyota companies tender their stakes, they'll have a two-thirds supermajority — enough to initiate a squeeze out of the remaining shareholders. "It seems like the Toyota Group is effectively telling ordinary shareholders 'this is the fair value, we won't move the price any further',' said Yasuo Sakuma, president of Libra Investments. Given the government pressure for improved corporate governance and capital efficiency, Japanese companies are increasingly unwinding their parent-subsidiary listings and cross-shareholdings. While the privatization of Toyota Industries is being framed as a step in this direction, executing a takeover at a discount could also be perceived as neglecting minority shareholders. The holding company for the buyout will be mostly owned by Toyota Fudosan, an unlisted real estate firm that counts Toyoda as chairman. Toyoda will personally invest ¥1 billion as well. "Given market participants' criticism of the deal, and indignation about the discounted share price offer, it's not out of the question that price will be revisited,' said Julie Boote, an automotive analyst at London-based research firm Pelham Smithers Associates. "Since the deal will only come into effect in December due to clearance requirements and other proceedings, minority shareholders might put forward an official complaint.' A discounted deal that could potentially give Akio Toyoda greater control over the group may also raise the ire of activist investors. Toyota Industries was founded by Toyoda's great-grandfather Sakichi, whose son Kiichiro went on to create Toyota Motor. Akio, Kiichiro's grandson, led Toyota as chief executive officer for 14 years until 2023, when he stepped aside to become chairman. Toyota Industries shares fell as much as 13.2% on Wednesday, the most since August last year. "Paying a premium is standard practice, but a discount leaves a bitter taste,' Masatoshi Kikuchi, chief equity strategist at Mizuho Securities said, noting that activist investors historically oppose discounted tender offers. However Kenta Kon, a former Toyota Motor chief financial officer who currently holds key positions at the automaker, its unit and Toyota Fudosan, pushed back on the idea that the privatization was a management buyout led by Toyoda. "The chairman's involvement isn't about control over the business, it's about his commitment to the deal, to provide support on the ground and for the betterment of Japan,' Kon said during a news conference Tuesday. The tender offer represents a big premium to the company's shares prior to the news of the buyout becoming public in late April, he said. In early April, Toyota Industries shares were trading around ¥10,765. Toru Iwai, an analyst at SBI Securities, noted that with Wednesday's decline, Toyota Industries' stock has already fallen to near to the tender price. The shares closed on Wednesday at ¥16,205. As a result, "the chance of the takeover bid succeeding is increasing,' Iwai said. "Even so, there will probably be significant resistance, particularly from overseas investors. There'll probably be more twists and turns.'
Yahoo
6 days ago
- Business
- Yahoo
Toyota Group initiates privatisation of Toyota Industries
Toyota Group has launched a series of transactions to privatise Toyota Industries Corporation through a tender offer for its shares and related restructuring moves. A new holding company will be established to facilitate this process, the Japanese conglomerate said in a press statement. Toyota Fudosan, a company held by Toyota Group entities, will invest approximately Y180bn to foster collaboration within the group. Akio Toyoda, Toyota's chairman, will contribute Y1bn. Additionally, Toyota Motor will invest around Y700bn in non-voting preferred shares. These investments will be funded by reinvesting proceeds from the sale of Toyota Industries shares held by Toyota Fudosan, Akio Toyoda and Toyota Motor since the company's listing. As part of the transactions, Toyota Motor, AISIN, Denso and Toyota Tsusho will sell their Toyota Industries shares while acquiring their own shares held by Toyota Industries through tender offers for treasury stock. This move will dissolve cross-shareholding arrangements between Toyota Industries and these four companies, although Toyota Motor will maintain its investment in Toyota Industries via the aforementioned preferred shares. Toyota Group noted it is shifting its focus towards becoming a mobility company, encompassing the movement of people, goods, information and energy. Toyota Industries is specifically concentrating on goods, developing autonomous technologies for logistics equipment like forklifts, logistics management software and eco-friendly powertrains, alongside leveraging data related to goods movement. The privatisation, according to the company, is aimed at strengthening collaboration within the Toyota Group, enabling faster and more dynamic progress in these areas to position Toyota Industries as a key player in the mobility sector for goods. Since fiscal year 2023, Toyota Group companies have been reviewing their capital relationships to support sustained growth. In its press release, the group indicated ongoing discussions to determine the optimal structure for its transformation into a mobility company and to refine its capital relationships to enhance competitiveness. "Toyota Group initiates privatisation of Toyota Industries" was originally created and published by Motor Finance Online, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
TimesLIVE
6 days ago
- Automotive
- TimesLIVE
Toyota Industries sinks after parent takeover bid misses expectations
Investors gave a thumbs-down to Toyota Motor's $33bn (R587.91bn) take-private offer for Toyota Industries on Wednesday, highlighting concerns minority shareholders would be short-changed in a landmark restructuring for Japan Inc. Shares of Toyota Industries, a key Toyota Group company, fell 12% in Tokyo trade a day after the world's top-selling carmaker unveiled plans to take its subsidiary private. The complex, ¥4.7-trillion (R587.88bn) transaction includes an offer price of ¥16,300 (R2,020) a share for Toyota Industries. While that represents a 23% premium to the price before news of the deal broke in April, it is well below the ¥18,400 (R2,280) shares were trading at on Tuesday, before the offer was formally announced. The shares closed at ¥16,205 (R2,008) on Wednesday. 'To be clear, we welcome the attempt to clear up the parent-subsidiary governance issue. We don't like the price,' said David Mitchinson, founding partner and chief investment officer of Zennor Asset Management, which owns Toyota Industries shares. When asked if Zennor would tender its shares, he said: 'We will have to see how this develops, as there seems strong opposition from many shareholders.' While the deal will see some Toyota Group companies unwind cross-shareholdings — a plus for corporate governance — it also appears to strengthen the founding Toyoda family's control over the broader group.
