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:2025-04-18 00:42:12
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! (39954)
Related
- Travis Hunter, the 2
- Family sues Panera, saying its caffeinated lemonade led to Florida man’s cardiac arrest
- Sen. Scott joins DeSantis in calling for resignation of state GOP chair amid rape investigation
- U.S. imposes new round of sanctions over Russia’s invasion of Ukraine
- Skins Game to make return to Thanksgiving week with a modern look
- Gold Bars found in Sen. Bob Menendez's New Jersey home linked to 2013 robbery, NBC reports
- US officials want ships to anchor farther from California undersea pipelines, citing 2021 oil spill
- Former U.S. Ambassador to Bolivia Manuel Rocha accused of spying for Cuba for decades
- DoorDash steps up driver ID checks after traffic safety complaints
- 2 women die from shark bites in less than a week: How common are fatal shark attacks?
Ranking
- Justice Department, Louisville reach deal after probe prompted by Breonna Taylor killing
- El Salvador is seeing worst rights abuses since 1980-1992 civil war, Amnesty reports
- ‘Widespread’ sexual and gender-based crimes committed during Hamas attack, Israeli officials say
- Can anything stop the toxic smog of New Delhi?
- Rylee Arnold Shares a Long
- Jacky Oh's Partner DC Young Fly Shares Their Kids' Moving Message 6 Months After Her Death
- House Speaker Johnson is insisting on sweeping border security changes in a deal for Ukraine aid
- Copa América 2024 draw is Thursday, here's how it works and how to watch
Recommendation
Juan Soto to be introduced by Mets at Citi Field after striking record $765 million, 15
Frontier Airlines settles lawsuit filed by pilots who claimed bias over pregnancy, breastfeeding
Israel continues bombardment, ground assault in southern Gaza
Roger Goodell says football will become a global sport in a decade
Cincinnati Bengals quarterback Joe Burrow owns a $3 million Batmobile Tumbler
Missed student loan payments during 'on-ramp' may still hurt your credit score. Here's why
Love Buddy from 'Elf'? This company will pay you $2,500 to whip up a dish inspired by him.
Can office vacancies give way to more housing? 'It's a step in the right direction'