Mitsubishi Corporation has approved the purchase of an additional stake in Toyo Tire & Rubber Co. It is doing so by way of a subscription to a private placement of shares. And as a result, it has entered into a capital alliance agreement with Toyo Tire.
The major purchase of the additional shares will increase Mitsubishi’s shareholding in Toyo nearly sixfold from 3.05 to 20.00 per cent.
With this share acquisition, Mitsubishi becomes Toyo’s largest shareholder. It also means that Mitsubishi personnel will be seconded to Toyo Tire’s board of directors.
There are major new trends developing in the global auto industry such as the electrification of vehicles. There is a consequent growing requirements to develop fuel-efficient or low environmental impact products.
There’s also the imminent arrival of automated driving technology etc, and as a result of all the changes, there are major shifts in industrial structure requirements and much of this has started already to come on-stream.
All this and more has implications for the tyre industry and not just on the manufacturing side. The nature of the services demanded, the route to market and some tyre distributor and retailer roles in the delivery chain are changing.
Mitsubishi is part of the largest global alliance with Nissan and Renault since 1999, which between them accounts for one in nine new vehicles sold last year worldwide. This alliance sold 5.54 million cars in the first half of this year and it has sold hundred’s of thousands of electric vehicles. They also have 122 manufacturing plants in operation. It all adds up to opportunities for great potential growth for Toya Tire.