Toyota boost capital ties with auto parts suppliers

Companies within the Toyota Motor Corp. group are strengthening their capital ties with suppliers to reduce the risk of takeovers and secure stable supplies of parts. By the end of March, Toyota had acquired 10 million shares in leading bearing manufacturer NSK Ltd. and had also pumped funds into Daido Steel Co. and major fiber producer Seiren Co. Toyota Tsusho Corp., the group’s general trading firm, had bought one million shares in NTN Corp. by March 31. NTN makes transmission parts for the Toyota group. The trading company also lifted its stake in Maruichi Steel Tube Ltd., in which U.S. investment fund Steel Partners is the top shareholder, to 0.6% as of March-end, up from 0.2% a year earlier. Meanwhile, Denso Corp. and Tokai Rika Co., both Toyota group firms that have joined forces to develop technology for locking vehicle doors automatically, have ramped up their cross-shareholdings. They have raised their mutual stakes to approximately one million shares, resulting in Denso owning a 7.2% interest in its partner, up from 6.2%. (June 23/26, 2008)