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Toyota and Daihatsu to establish emerging-market compact car company on 1 January

Toyota Motor Corporation and its fully owned subsidiary Daihatsu Motor intend to officially establish their internal company responsible for compact vehicles for emerging markets (announced on 4 October 2016) on 1 January 2017. The new internal company is to be called the “Emerging-market Compact Car Company”.

The new internal company’s objective is to establish work processes untethered by conventional practices and rules and to introduce competitive cars based on Daihatsu’s approach to manufacturing affordable, high-quality products.

The new internal company will comprise three divisions: the Emerging-market Compact Car Product & Business Planning Division; the Emerging-market Compact Car Product Planning Division; and the Emerging-market Compact Car Quality Planning Division. Furthermore, Toyota Motor Asia Pacific Engineering and Manufacturing Co., Ltd. (TMAP-EM) is to be renamed Toyota Daihatsu Engineering and Manufacturing Co., Ltd. (TDEM) and become an entity under the new internal company.

The Emerging-market Compact Car Product & Business Planning Division, which is to span both Toyota and Daihatsu, is to conduct overall planning for products and business operations, including making proposals for the Toyota-brand vehicle product lineup for emerging markets and for overall strategy.

Although Daihatsu will basically have responsibility for product development for emerging-market compact cars, the new internal company’s Emerging-market Compact Car Product Planning Division and Emerging-market Compact Car Quality Planning Division will be responsible for final product development and quality for Toyota-brand vehicles.

With the establishment of the new company, TMAP-EM, which has hitherto specialized in providing Toyota development, logistics and production preparation support for locally produced vehicle models, is to also be responsible for supporting the production of Daihatsu-centered compact vehicles for emerging markets.

Daihatsu President Masanori Mitsui is to be appointed chairman and Toyota Managing Officer Shinya Kotera is to be appointed president of the new internal company.

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