Hyundai takes over US sports car manufacturer, Toyota
Reuters The Hyundai Motor Company has signed a deal to buy out the remaining stock of Toyota Motor Corp. (TM) from its former owner, Toyota Motor Corporation, to become the first US-based company to take full control of a Japanese-owned auto maker.
The deal will mean that Hyundai can take control of Toyota’s U.S. operations, with Toyota having sold its Japanese operations to Nissan Motor Co. Nissan sold the U.K.-based automaker to General Motors Co. in December for about $1.5 billion, after a seven-year deal.
Hyundai said it would retain ownership of Toyota and make the automaker an independent vehicle manufacturer, a move it said would provide it with a competitive edge.
The agreement follows the announcement of a $1 trillion merger between Hyundai and Japanese automaker Toyota Motor Co., the world’s second-largest auto maker, which is being led by CEO Akio Toyoda.
Toyota is in the midst of an internal reorganization that could lead to an exit of about 200,000 jobs as part of a plan to overhaul its operations and strengthen its position as a global carmaker.
Toyotas global operations will also be split into two separate companies, one under the Hyundai brand, which it owns.
The acquisition would mean that all of Hyundai’s U,S.
brands, including the Camry, Golf, Jetta and Sonata, will be part of Toyota.
Hyde said in a statement on Tuesday that it would have an existing “ownership interest” in Toyota and that it planned to use its full management and investment power to “improve Toyota’s operations in the United States.”
Toyota said it had no immediate comment on the deal.
“We look forward to further working with Hyundai Motor Co.,” Toyota said in its statement.
“The new Toyota will be the first U.s.-based company with Toyota-owned U.k. operations to control Toyota U. S. operations.”
The deal is the first major deal in U.A.E. since Nissan sold its operations to Volkswagen AG in November.
Hyundai is the world market leader in electric vehicles, and it will remain one of the world leader in compact cars and trucks.
Toyo, which said it expects to have about 4 million vehicles on the road by 2021, was one of Toyota Corp.’s most profitable and innovative brands during its decade of expansion, with sales increasing in the U-S.
and around the world by nearly 2 percent last year.
Its shares fell by about 12 percent in Tokyo, while Toyota’s shares fell more than 11 percent.
The merger comes amid a global economic slowdown that has prompted several automakers to cut back on production.
Hyunews stock rose slightly in Tokyo on Tuesday, after the deal was announced.
The company said the combined company would invest $1 billion in Toyota facilities and operations, including creating 1,200 U.z.
Toyota manufacturing jobs in the US and other countries, as well as expanding its plant in South Korea and in China.
In a statement, Toyota said it planned “to build a world-class, globally-connected, fully automated assembly line.”