Three Toyota Group Companies Conclude Basic Merger Agreement
Kanto Auto Works, Central Motor and Toyota Tohoku to Form Integrated Company
Toyota City, Dec 14, 2011 - (JCN Newswire)
- Kanto Auto Works Ltd, Central Motor Co. Ltd, and Toyota Motor Tohoku
Corporation today concluded a basic merger agreement - an important step
toward the launch of an integrated company, scheduled for July
The agreement follows discussions on a proposed merger held since July and lays out the key terms, to which the three companies have fundamentally agreed. Following further discussions based on the terms, the three companies plan to sign an official merger agreement, to take effect following approval at general shareholders meetings of the three companies.
I. Key terms of the basic merger agreement
Company name: Toyota Motor East Japan, Inc. Representative: President Takeshi Shirane Location: Ohira-mura, Kurokawa-gun, Miyagi Prefecture Merger type: Merger through absorption; Kanto Auto Works as the surviving company (Central Motors and Toyota Tohoku absorbed) Date of merger: July 1, 2012 Capital: 6.85 billion yenII. Schedule leading up to the official consolidation
1. Dec. 14, 2011 - Companies conclude basic merger agreement (complete)
2. Jan. 1, 2012 - Kanto Auto Works converts to fully owned subsidiary of Toyota Motor Corporation (tentative)
3. Apr. 2012 - Merger agreement concluded (tentative)
4. Jun. 2012 - General shareholders meetings held to approve merger agreement (tentative)
5. Jul. 1, 2012 - Launch of integrated company (tentative)
III. Goals of the Integrated Company
Firstly, the new company will seek to grow roots in the Tohoku region while continuing monozukuri (conscientious manufacturing) activities at one with the region and aiming to be a good corporate citizen.
Secondly, the integrated company will harness strengths developed over a long period by the three companies, including their skilled workers and innovative technologies, to create attractive compact vehicles and thus improve production of compact vehicles. The company will also share technologies and skills with Toyota production bases outside Japan, and through participating in the planning of global compact-vehicle production, contribute to the global development of the Toyota group of companies.
To supply globally competitive compact vehicles, the company will work to achieve the following three core objectives:
1) Build production infrastructure for compact vehicles
- Develop a profitable management structure for compact vehicles (rigorous implementation of manufacturing fundamentals; lean and strong management)
- Strengthen compact vehicle production capabilities (strengthen engineering skills and further improve manufacturing capabilities)
2) Monozukuri at one with the Region
- Establish a local-procurement-promotion center in Tohoku (January 2012) to strengthen local procurement that is at one with regional industry
- Strengthen the Tohoku technical center to promote development of new technologies and parts through partnership with private, public and academic institutions
3) Medium- to long-term human resources development
Establish a training center in April 2013 to contribute to the revitalization of the local economy over the medium-to-long term through development of human resources in manufacturing (accept trainees from local industry)
Supported by people around the world, Toyota Motor Corporation , has endeavored since its establishment in 1937 to serve society by creating better products. As of the end of March 2011, Toyota conducts its business worldwide with 50 overseas manufacturing companies in 26 countries and regions. Toyota's vehicles are sold in more than 170 countries and regions. Toyota's vehicles are sold in more than 170 countries and regions. For more information, please visit www.toyota-global.com.