Toyota To Sell $4.7 Billion Denso Stake To Fund EV Development

[mclasser]

Exclusive: Toyota group companies plan $4.7 billion sale of Denso stake

Toyota Motor and two affiliates plan to sell about 10% of components maker Denso by year-end, a stake likely worth about $4.7 billion, sources familiar with the matter said.

www.reuters.com

The bZ4X was a rush job response to the EV trend. Will be interesting to see what fully-thought out product(s) Toyota devises that are up to the usual high quality standards consumers have come to expect from the brand.

On the topic of Denso - Big fan of their parts, both OE and aftermarket. One can purchase something from their FTF aftermarket line and actually be confident in its quality. The same can't be said for most aftermarket parts out there today. I've bought FTF sensors and starters for my Hondas that looked and functioned the exact same as the OE Denso part coming out, just without the Honda logo and associated dealer markup.

 

[slacktide_bitog]

This doesn't sound like a good move, given that Denso will end supplying many of the parts anyway, and of course Toyota's quality rubbed off on Denso, even the aftermarket.

Hopefully Denso's parts will still be as good as they've been so far

 

[KGMtech]

I'm confused, I thought Toyota was saying that Hydrogen engines were the best way forward?

 

[BMWTurboDzl]

I'm confused, I thought Toyota was saying that Hydrogen engines were the best way forward?

Hydrogen is impractical for use in anything but a fuel cell. The challenges revolving around in-vehicle storage and distribution can't be overcome.

 

[BMWTurboDzl]

Exclusive: Toyota group companies plan $4.7 billion sale of Denso stake

Toyota Motor and two affiliates plan to sell about 10% of components maker Denso by year-end, a stake likely worth about $4.7 billion, sources familiar with the matter said.

www.reuters.com

The bZ4X was a rush job response to the EV trend. Will be interesting to see what fully-thought out product(s) Toyota devises that are up to the usual high quality standards consumers have come to expect from the brand.

On the topic of Denso - Big fan of their parts, both OE and aftermarket. One can purchase something from their FTF aftermarket line and actually be confident in its quality. The same can't be said for most aftermarket parts out there today. I've bought FTF sensors and starters for my Hondas that looked and functioned the exact same as the OE Denso part coming out, just without the Honda logo and associated dealer markup.

Not a huge deal. Toyota is only selling off 5% of their 28% stake in Denso.

 

[Rmay635703]

priuschat com/threads/the-world’s-biggest-carmaker-made-a-huge-bet-on-tech-things-went-wrong-fast.244691/#post-3409937

Rushing after 13 years of being aware of the mandate?

Sounds like excuses for a meh vehicle.

Toyota is in debt up to their eyeballs and lacks anything coherent for an EV offering.

My guess is their vertical integration costs to much to supply an EV battery so they are dragging feet instead of going outside their normal realm of partners.

One would think they could at least offer a compliance vehicle to the levels that dodge does and pay the credit fine , (which in their case is a small one) their fleet economy is good they can almost get away with ignoring the segment but they also are getting further behind and more in debt.
If they were willing to be a partner with another automaker they likely wouldn’t be in the place they are.

 

[proveitwithdata]

This doesn't sound like a good move, given that Denso will end supplying many of the parts anyway, and of course Toyota's quality rubbed off on Denso, even the aftermarket.

Hopefully Denso's parts will still be as good as they've been so far

Toyota remains the top stockholder even with this sale. So no worries in that front.

 

[JavierH19]

Boo

 

[JeffKeryk]

The barriers to entry for a major product initiative are high. Toyota and others are finding a proper EV is more than stuffing a battery and motor into an existing platform.
I have no doubt Toyota, with requisite investment, can deliver a viable EV. Heck, they still make the best hybrids. And my old Tundra has proven to be bulletproof.

As @slacktide_bitog posted, my fear is possible quality issues at Denso. They are my goto plugs for Toyotas, Hondas and Nissans.

 

[gman2304]

Toyota doesn’t rush anything. Toyota/Panasonic is building a 14 billion dollar EV/PHEV battery plant in Liberty, N.C. with a planned opening date of summer 2025 and will employ 5,100 people. They’re laying in the bushes while other companies do the R&D work for them and when they’re ready, the ‘beast of the East‘ will pounce and dominate the EV market.

 

[paulo57509]

If Denso is still going to be an OEM supplier to Toyota, I don't think I'd worry too much about a drop off in quality. Just from personal experience, suppliers should always have to comply with a customer's supplier quality system (in this case Toyota) and also be subjected to periodic customer audits.

If Denso separates aftermarket and OEM parts manufacturing to cut corners, perhaps we should just get parts from the Toyota dealer parts counter.

 

[cptbarkey]

Now is a great time to sell stock while the market is toppy. Good for Toyota.

 

[nobb]

Toyota's transition to EV seems to be planned out with hybrids being the intermediary that they are going all in on. Toyota may make the best hybrids, but I'm still not a fan of them forcefully including it on many desireable trim models of their vehicles nowadays. Eg: the new Land Cruiser only comes with the hybrid powertrain.

 

[demarpaint]

Seems like an OK move. Although I would keep pushing Hybrid and maybe even throw a bit more money in that direction in the short term.

 

[GMBoy]

My take on this is while the others, and I am referring to GM and FORD mostly, went balls to the wall on the EV gamble with all the hoopla advertising and promises yet deliver nothing. Toyota sat back and watched and I am sure they already have a perfect EV strategy and when they unleash their plan and models they will probably dominate the market.

 

[BMWTurboDzl]

My take on this is while the others, and I am referring to GM and FORD mostly, went balls to the wall on the EV gamble with all the hoopla advertising and promises yet deliver nothing. Toyota sat back and watched and I am sure they already have a perfect EV strategy and when they unleash their plan and models they will probably dominate the market.

They delivered just not at the price point many had hoped. It took years of Tesla Model S sales before the Model 3 was made available for sale.

 

[GMBoy]

They delivered just not at the price point many had hoped. It took years of Tesla Model S sales before the Model 3 was made available for sale.

That is true but they also never delivered on time either. Good points though for sure.

 

[PandaBear]

I think this is more of a financial move than anything. If the price is right then it is a good idea to sell your assets and use the money for something else. Denso will be fine, if Toyota is still the major shareholder. Selling them to a cash grab foreign company would be the problem (see Nissan).

On the EV front, I think they will get there but they just don't want to take the risk of selling garbage that will be recalled or not lasting past warranty. That's not how Toyota rolls (at least not intentionally).

Maybe this will open up other customers to chip in for the EV development through Denso? BofA divest Visa and that became a standard unlike Amex stays solo with their own credit card. Maybe Denso will get more players chip in (Honda? Mazda?)