Toyota Makes Subaru Affiliate with Additional Investment
Nagoya, Sept. 27 (Jiji Press)--Toyota Motor Corp. <7203> is poised to increase its investment in Subaru Corp. <7270> to make it an equity-method affiliate, it was learned Friday.
Toyota, Japan's leading automaker, will raise its equity stake in the smaller domestic peer from some 17 pct to 20 pct or higher, informed sources said.
Subaru will also acquire Toyota shares, according to the sources. It currently has no stake in Toyota.
The plan to strengthen the partnership shows the two companies' commitment to jointly develop next-generation technologies, such as automated driving.
Making Subaru an equity-method affiliate means that the firm's profits or losses will be reflected in Toyota's consolidated earnings according to its equity stake.
[Copyright The Jiji Press, Ltd.]