Toyota to invest in Mitsubishi jet development

Toyota Motor Corp. said it has formally decided to invest up to ¥10 billion (US$96.29 million) in Mitsubishi Aircraft Corp., a wholly owned unit of Mitsubishi Heavy Industries Ltd. for the development and marketing of Japan’s first passenger jet. A Toyota official said the automaker decided to accept a request for investment because joining the project would bring about synergies for Toyota’s development of automobiles by the application of aeronautical technology. Toyota also wants to participate in the national project to cooperate in the revitalization of Japanese industry, the official said. In addition to Toyota, Mitsubishi Heavy has also requested major trading houses and other firms to invest in the new firm. The government is expected to fund about one-third of the huge development cost, which is estimated to be around ¥150 billion (US$1.44 billion). (May 1, 2008)