JAPANESE CAR PARTNERSHIPS TO START WITH $4 MILLION IN NEW EQUIPMENT Japan’s car parts suppliers are set to begin buying new equipment at an eye-watering rate, with Toyota Motor Corp (TM) pledging to spend $4.7 billion over five years on new equipment to meet increasing demand.
As of September 2020, Toyota Motor said it would spend $2.7bn on new car parts.
It will spend another $1.4bn on electric and hybrid vehicles, according to industry estimates.
This is an important step in a process that began with the creation of Toyota Automotive Group in 1997, which began by buying new car engines from the Japanese government.
Toyota was a key supplier to the United States government for nearly two decades before its acquisition by Honda Motor Co (7203.
T) in 2006.
In 2016, Toyota bought a significant portion of Nissan Motor Co’s (7201.
That deal included the Nissan LEAF, a plug-in hybrid car that has become one of the world’s best-selling vehicles.
In 2019, Toyota and Mitsubishi Motor Corp agreed to a new $5.5 billion deal for electric vehicles.
The deal is expected to be completed by the end of 2021.
The Toyota deal was made possible by the U.S. government’s financial assistance, which includes a $1 billion loan for the purchase of about 500,000 new cars, Toyota said.
The new Toyota Motor and Mitsubsubishi vehicles are scheduled to be built in a joint facility in Toyota’s plant in the southwestern city of Oita.