Toyota, Hyundai, Ford, Honda to merge engine suppliers
Posted On July 1, 2021
Toyota and Hyundai Motor Corp. have agreed to merge their engine suppliers.
Toyota’s engine suppliers will get a 10% cut of the company’s annual revenues, according to a filing with the U.S. Securities and Exchange Commission.
The announcement comes two weeks after Toyota, Honda and Hyundai agreed to a $15.9 billion merger.
The deal includes $1.6 billion in cash and $5.3 billion in equity.
The combined company will be called Toyota Group Corp. and it will be headquartered in Austin, Texas.
The two companies will have a combined revenue of about $70 billion, according the filing.
The merger is expected to close by the end of 2019.
Toyota, which is the No. 2 automaker behind the Scion brand, has been aggressively expanding its business, with more than half of its revenue coming from electric cars.
The Toyota group also includes a number of other companies, including Honda Motor Co., Mitsubishi Motors Corp. , Nissan Motor Co. and Toyota Motor Corp., which makes Lexus, Infiniti and Lexus ES models.
Toyota has been seeking to expand its business and improve its reputation in the wake of the Fukushima nuclear disaster.