Toyota and Daihatsu create the Emerging-market Compact Car Company

Article by Christian A., on December 21, 2016

Each time a new auto company enters the fray to produce the right cars for the right market, many are usually left wondering what kind of venture it is, what vehicles it will design and create , and where it plans to sell those products.

Now, Toyota Motor Corp. and its fully owned subsidiary Daihatsu Motor Co. Ltd. are now announcing the creation of a new internal company that would design and build compact vehicles that will be sold in emerging markets. How do we know that? Well, that new car company established by Toyota and Daihatsu is named 'Emerging-market Compact Car Company'? So, it is pretty obvious what kind of venture this company will be when it formally and officially becomes one on the start of the new year – on January 1, 2017.

Top management will be led by Masanori Mitsui – currently Daihatsu president – as chairman and Shinya Kotera – now Toyota Managing Officer – as president. According to the companies, the new Emerging-market Compact Car Company is aiming to set up work processes not bound by conventional practices and rules. The new Emerging-market Compact Car Company is also aiming to introduce better cars using Daihatsu's approach in building affordable yet high-quality vehicles.

The new Emerging-market Compact Car Company would be able to take advantage of Toyota’s presence in emerging markets, particularly in the Asia-Pacific area where it either import or small-scale manufacturing. To this effect, Toyota Motor Asia Pacific Engineering and Manufacturing Co., Ltd. (TMAP-EM) will become a part of the Emerging-market Compact Car Company. However, it will be renamed as Toyota Daihatsu Engineering and Manufacturing Co., Ltd. (TDEM).

To operate, the new Emerging-market Compact Car Company would be structured into three main units, each having its own role in the venture -- Product & Business Planning Division; Product Planning Division; and Quality Planning Division. Both Toyota and Daihatsu will play a role in the Product & Business Planning Division, which will be tasked to plan all products and business operations.

Daihatsu, meanwhile, will be solely in charge of Product Planning Division and Quality Planning Division. This means that Daihatsu will be responsible for development as well as quality of the final product.

TDEM, on the other hand, will be providing support in the areas of development, logistics as well as production preparation of domestically produced models. TDEM will also support production of Daihatsu-focused compact vehicles for, of course, emerging markets.

Toyota and Daihatsu, however, haven’t made clear whether the new Emerging-market Compact Car Company will result to the creation of a new brand. Although, the announcement tells us that production will be of both Toyota and Daihatsu models.

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