Current:Home > ContactToyota selling part of Denso stake to raise cash to develop electric vehicles -WealthSphere Pro
Toyota selling part of Denso stake to raise cash to develop electric vehicles
View
Date:2025-04-13 09:31:12
TOKYO (AP) — Toyota is selling a part of its stake in components maker Denso to raise cash for its drive toward electric vehicles and other innovations, Japan’s top automaker said Wednesday.
The move is estimated to raise about 290 billion yen ($2 billion), given recent share prices. The number of shares Toyota Motor Corp. plans to sell total more than 124 million shares, lowering its stake in Denso Corp. from 24.2% to 20%, while remaining the top stakeholder.
“We don’t want to just hold on to our assets. We want to make them living assets that feed into the growth of our company,” said Masahiro Yamamoto, an executive in the accounting group at Toyota.
Denso shares closed at 2,298 yen ($16) Wednesday.
Toyota said the money will also go into developing smart-driving technology and a wide range of other initiatives ongoing in the industry.
Yamamoto did not give a specific date for the sale, but it’s expected to happen soon.
All the world’s major automakers are working on strengthening their lineup of electric vehicle and other green cars, as concerns grow about climate change. That requires a great deal of investment.
Toyota affiliates, Toyota Industries and Aisin, are also selling a portion of their Denso shares, officials said.
Japanese companies hold stakes in other group companies in a practice traditionally known here as cross-shareholdings.
Yamamato denied the move was aimed at reducing such cross-holdings. Some have criticized the practice as reducing transparency while proponents say it helps maintain stability.
Toyota officials have acknowledged they have fallen behind in the industry shift toward electric vehicles, and they have been aggressively playing catch-up.
Toyota, which makes the Camry sedan, Lexus luxury models and the Prius hybrid, leads the world in hybrids, which switch back and forth between a gas engine and electric motor to deliver a fuel-efficient drive. It also has a strong lineup in fuel cells, which run on hydrogen and are zero-emission.
In July, Toyota sold a part of its stake in telecoms company KDDI Corp., raising nearly 250 billion yen ($1.7 billion). Toyota officials hinted other such offers may be in the works but declined to give specifics.
___
Yuri Kageyama is on X, formerly Twitter https://twitter.com/yurikageyama
veryGood! (9499)
Related
- Could Bill Belichick, Robert Kraft reunite? Maybe in Pro Football Hall of Fame's 2026 class
- Woody Allen attends Venice Film Festival with wife Soon-Yi Previn amid controversial reception
- Out-of-state residents seeking abortion care in Massachusetts jumped 37% after Roe v. Wade reversal
- New Pennsylvania Legislation Aims to Classify ‘Produced Water’ From Fracking as Hazardous Waste
- Backstage at New York's Jingle Ball with Jimmy Fallon, 'Queer Eye' and Meghan Trainor
- Suspect sought after multiple Michigan State Police patrol vehicles are shot and set on fire
- Texas prison lockdown over drug murders renews worries about lack of air conditioning in heat wave
- Funko Pop Fall: Shop Marvel, Disney, Broadway, BTS & More Collectibles Now
- B.A. Parker is learning the banjo
- Every Hollywood awards show, major movie postponed by writers' and actors' strikes
Ranking
- Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Triathlon
- A$AP Rocky, Kelly Rowland honored, Doug E. Fresh performs at Harlem's Fashion Row NYFW show
- Pregnant Kourtney Kardashian Speaks Out After Hospitalization for Urgent Fetal Surgery
- 3 dead at Minnesota's Breezy Point Resort; police investigate deaths
- The FBI should have done more to collect intelligence before the Capitol riot, watchdog finds
- Carl Nassib, first openly gay player to play in NFL games, announces his retirement
- Joe Jonas and Sophie Turner Break Silence on Their Divorce and Speculative Narratives
- 'Alarming' allegations: 3 Albuquerque firefighters arrested in woman's alleged gang rape
Recommendation
Head of the Federal Aviation Administration to resign, allowing Trump to pick his successor
Nepo baby. Crony capitalism. Blursday. Over 500 new words added to Dictionary.com.
'I've been on high alert': As hunt for prison escapee rolls into 7th day, community on edge
'AGT': Simon Cowell's Golden Buzzer singer Putri Ariani delivers 'perfect act' with U2 cover
Tree trimmer dead after getting caught in wood chipper at Florida town hall
Jonathan Majors' domestic violence trial delayed again in alleged assault case
TikToker went viral after man stole her shoes on date: What it says about how we get even
More wild Atlantic salmon found in U.S. rivers than any time in the past decade, officials say