Tesla car company announces $1 billion plan to buy Toyota
Toyota is betting that the carmaker can be a leader in a sector it sees as a “tipping point” for the U.S. market, and that it can offer something that the rest of the industry cannot.
Toyota said Tuesday that it will spend $1.8 billion on a $1-billion buyout of Toyota Motor Corp. of America Inc., or TMA.
The deal is the first since 2011.
It also marks the first time that Toyota will buy the entire auto industry, instead of just its largest and most profitable units.
The buyout is expected to close in 2021.
The Toyota-GM deal is a big deal for Toyota, which had been stuck between two of the largest carmakers in the industry.
Ford Motor Co. is trying to buy the struggling General Motors Co. and General Motors Advanced Technology Corp., or GMATC.
The two companies are now in talks to merge to form a new company.TMA, however, is the world’s biggest maker of car parts, and is seen as the leading challenger to the big-selling Ford.
GMATB has been struggling to stay competitive in the marketplace.
In the last three years, TMA has seen sales decline by more than half.
Last year, Toyota reported a $6.2 billion loss, a decline of 20% from a year earlier.
The new acquisition will help Toyota retain a foothold in the market.
The buyout will help it gain a better position in the auto industry.
Toyota already owns about 15% of TMA, and it is investing $1 in the car maker as part of the deal, Toyota said.
Toyota is also buying back TMA’s assets and will keep $300 million in cash.
In a statement, Toyota CEO Akio Toyoda said the new deal “creates a synergistic and sustainable opportunity for the automotive industry that will help us expand our competitiveness in the next five years.”
The new deal will also help Toyota become the top carmaker in the U and Asia.
In the U, Toyota is expected in 2021 to be the biggest carmaker, according to data compiled by Bloomberg.
The market for Toyota cars has been growing by about 30% annually for the past two years.
In China, Toyota will sell some 1.2 million new vehicles annually, the company said.
The automaker has a market share of about 40% in China, the world with the second-largest auto market after the U., according to Bloomberg data.
The deal could give Toyota a larger footprint in Asia, where the company is struggling.
It is looking to expand into Japan and other parts of Asia, the U..
Toyota has had to grapple with a surge in pollution in China over the past year.
In 2016, it spent about $1 trillion on cleanup efforts in the country.