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TOYOTA MOTOR Corp. the worlds largest carmaker by value, may use Tomen Corps distribution network to expand in developing countries after the trading company was bought by a Toyota affiliate, analysts including Yasuhiro Matsumoto said. Toyota Tsusho Corp, 23 per cent owned by Toyota, on Friday agreed to pay as much as $1.5 billion for Osaka based Tomen. Matsumoto, an analyst at BNP Paribas said in Tokyo that, "Buying Tomen will help boost Tsushos business, which has been stretched to keep up with Toyotas overseas expansion,".He said" Tomen will probably help Toyotas growth" in Brazil, Russia, India, and Asia outside of Japan".Toyota President Katsuaki Watanabe,is focusing on emerging markets to expand global market share to 15 percent from 12 per cent. Toyota is producing more vehicles in DTorth America, Asia and Europe. The trading company, 23 per cent owned by Toyota and based in central Japans Nagoya, said net income rose 9.6 per cent to a record 20.4 billion yen in the six months ended September 30, aided by auto-related business which account for about 80 per cent of its sales. The acquisition becomes effective on April I, 2006. Toyota makes vehicles in more than 60 factories in 27 countries. Camry and Corolla sedans makers are one of the worlds most profitable assemblers, using its production speed and supplier network to boost sales while cutting costs. Koji Endo, an analyst at Credit Suisse in Tokyo said, "Theres not much overlap in the two trading companies, and Tomen has some business segments that Tsusho doesnt have." "The new entity will continue to work with Toyota."he said further. |
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| Posted : 11/4/2005 |
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