Has friendly but useless stakes in several of its rivals, such as Subaru and Mazda
Toyota, its Hino truck unit and Isuzu have announced a connected truck and fuel cell joint venture. It could serve Tokyo’s green push and Toyota’s hope to lead green vehicles. But Isuzu and Toyota will also buy mutual stakes of 333 million euros, reverting to a structure they had abandoned in 2018. It’s particularly awkward given that Hino (of which Toyota owns 50%) competes with Isuzu.
This complicates Toyota’s growing list of friendly but futile holdings in rivals including Subaru and Mazda, as well as a number of strategic clean energy partnerships, technology sharing agreements, and more. Shares, which were already down sharply from the 13th high, slumped another 2% after the announcement; Isuzu, in which Toyota will own 4.6%, soared more than 5%. The government is trying to improve governance and return for shareholders. In this sense, the new company seems unclean.