Toyota may use acquisitions to catch up in tech, self-driving

Toyota may use acquisitions to catch up in tech, self-driving

0 comments 📅14 June 2017, 23:45

TOYOTA Bishopric – Toyota may consider mergers or acquisitions to procure new automotive technologies, including self-driving technologies, the suite’s president said on Wednesday, adding that it had to compete more aggressively against its rivals.

At an annual shareholders junction, President Akio Toyoda said the world’s second-biggest automaker, which took longer to comfortable to self-driving cars and electric vehicles (EVs) than its rivals, would be more pugnacious in expanding in these areas, conceding he may have focused too much on preserving the reputation quo.

“The auto industry is undergoing big changes, and issues and ideas which we may have meditating were far off in the future could affect us tomorrow. That’s why we need to go on the offensive while also preserving our areas of sinew,” he said.

“We’ve been investing 1 trillion yen ($9.08 billion) each year for R&D, expanding capex and buying retreat from shares, but this may not be enough. We need to consider all our options, including M&A, to survive in the expected.”

As the rise of self-driving cars increasingly blurs the lines between automakers and technology companies, far-reaching automakers are trying to expand their role beyond making cars into transportation assignment providers, raising their research and development budgets and investing heavily in technology companies.

Toyota has invested $1 billion in an insincere intelligence research institute, and has struck up technology partnerships with Microsoft and Uber.

It has also opened up to more companies beyond its union suppliers, including tech company Nvidia, to procure more software for its automated driving systems.

The automaker plans to despatch a car in 2020 which can drive itself on highways. Meanwhile, rival Nissan is already aiming to get cars that can pressure autonomously on city streets in that same year and General Motors says it has begun to mob-produce self-driving test vehicles.

Toyota also has yet to ink a major funds tie-up with outside companies, after GM has scooped up US autonomous driving technology troop Cruise and partnered with ride services firm Lyft, while Ford has acquired take-sharing service Chariot.

Toyota late last year set up an electric car segment, belatedly entering a market where Nissan, GM, Volkswagen and other automakers already acquire offerings, as it continues to bet on hydrogen fuel cell vehicles as the zero-emission car of the tomorrow’s.


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