In June 1967, the Japanese government made a decision on its
basic policy on capital liberalization. During the meeting of the Japan-U.S.
Trade and Economy Joint Committee held in September of that year, the U.S. side
asked Japan to accelerate liberalization of capital transactions in Japan. Then
in December of the same year, a visit to Japan was scheduled for a U.S. Auto
Industry Delegation led by former Under Secretary of State George Ball,
increasing the intensity of the onslaught of foreign capital. As a result, the
Japanese auto industry was forced to strengthen its international
competitiveness through size increases under a situation that was even tenser
than before.
While these circumstances caused many to advocate industry
regrouping even more aggressively than before, Sanwa Bank approached Toyota Motor
Co., Ltd. about working together with Daihatsu Motor Co., Ltd. Unlike Hino
Motors, many of the models being produced and sold by Daihatsu were competing
with those of Toyota and Daihatsu Motor had no intention of liquidating those
models. Therefore, the two companies agreed to a cooperative alliance based on
an understanding that both companies would manage their respective companies
independently and responsibly.
On November 9, 1967, Toyota Motor Co., Ltd., Toyota Motor
Sales Co., Ltd., and Daihatsu Motor exchanged a memorandum of understanding
about forming a cooperative alliance, held a signing ceremony at Hotel Okura in
Minato-ku, Tokyo, and issued the following joint statement:
Toyota Motor Co., Ltd., Toyota Motor Sales Co., Ltd.
(Toyota) and Daihatsu Motor Co., Ltd. have always maintained a friendly
relationship, and have now agreed to form a cooperative alliance in order to
make the relationship even closer.
With full-scale liberalization of the Japanese economy
imminent, we consider it extremely urgent to enhance the international
competitiveness of Japan's automotive industry through structural regrouping
and improvements in corporate culture. Based on this assessment, Toyota and
Daihatsu have agreed to takes steps toward our mutual benefit and to contribute
to the healthy advance of the industry.
Therefore, although Daihatsu will become a member of the
group centered on Toyota, the two sides will continue managing their companies
independently and responsibly, capitalizing on their respective unique
strengths.
Regarding the specific steps related to the cooperative
alliance, we plan to form a committee as quickly as possible and will begin
implementing those steps that are feasible.
Ikeda Plant, Daihatsu
Motor Co., Ltd.
At the press conference following the signing ceremony,
President Eiji Toyoda explained the details of the cooperative alliance as
follows:
“No details have yet been finalized about the cooperative
alliance with Daihatsu. We plan to establish a committee to study them as soon
as possible. We will consider the difficult position we are in and hope to draw
out both companies' strengths. Since a consistent battle strategy cannot be
maintained if the companies in the Japanese automotive industry waver, we hope
to use this Toyota-Daihatsu alliance as a common defense against the onslaught
of foreign companies.”
Although Toyota does not have a minivehicle division, we
believe we will be able to gain an advantage by establishing a common strategy
with Daihatsu. I think industry consolidation will continue.
As a result of this cooperative alliance, the Toyota Group
established itself as an all-round corporate group offering all car models from
large trucks to minivehicles, with passenger cars as the core, providing a
great impetus to the regrouping of the Japanese automotive industry. A
dedicated committee took up the issue of finalizing the specifics of the
cooperative alliance and, subsequently, the benefits of the alliance were
realized in many areas, from new car development to production subcontracting.
Source: Toyota Motor Corporation
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