Feb 01 2016

NAGOYA -- Toyota Motor is reworking its plans for its small-car business with an eye toward emerging markets -- where the vehicles flourish -- looking to Suzuki Motor and Daihatsu Motor for the know-how and resources needed to get into pole position. Toyota is discussing a tie-up with Suzuki and considering making Daihatsu a wholly owned subsidiary. A statement released by Toyota said that the automaker is considering a variety of options for partnerships and business reorganization, including taking full control of Daihatsu.

Toyota, which owns 51.2% of Daihatsu, intends to acquire the remaining shares through a stock swap costing more than 300 billion yen ($2.52 billion), with integration to begin as early as the summer. The two companies are expected to make a decision Friday.

Suzuki ended a capital alliance with Volkswagen last September, spending about 460 billion yen to buy back the German automaker's nearly 20% stake. President Toshihiro Suzuki said the company will determine what to do with the shares within the fiscal year ending in March. It is considering using a portion for a cross-shareholding arrangement with Toyota.