The Nikkei reports that Toyota Motor Corp. will boost its stake in Fuji Heavy Industries Ltd. (FHI), the maker of Subaru vehicles, from 8.7% to around 17% by purchasing 64.25 million shares for roughly ¥30 billion (US$294 million).
Those shares account for 8.2% of Fuji Heavy’s outstanding shares. Toyota established capital and business ties with Fuji Heavy in 2005 after GM sold off its approximate 20% equity stake (about 157 million shares) in FHI. Toyota bought slightly less than half of those shares, giving it the 8.7% stake. (Earlier post.)
But Toyota currently has no plans to turn Fuji Heavy into an equity-method subsidiary, keeping its stake under 20%. The two partners aim to upgrade their cooperation to encompass all business areas, including development and production.
As a start, Toyota will consider subcontracting production of cars, centering on subcompact mass market models, to Fuji Heavy’s factory in Ota, Gunma Prefecture. The two firms will also jointly develop a sports car and other new models, as well as environmental technologies.