Toyota Motor Corp. and Japanese auto parts supplier Aisin Seiki Co. Ltd. on May 24 agreed to increase the latter's stake in Toyota Autoparts Philippines Inc. to 61% from 34%.
The move is expected to strengthen the unit's competitiveness in the manual transmission business, according to a company announcement.
Toyota Autoparts Philippines will be renamed Toyota Aisin Philippines Inc. and will be a subsidiary of Aisin. The Japanese auto components supplier will take the lead in managing the new company's business operations.
Aisin also plans to consolidate part of its manual transmission production, handled by Aisin AI, to Toyota Aisin, and invest 1.2 billion Philippine pesos to set up an automatic transmission component production lines.
Toyota now owns 34% of the business while Toyota Motor Philippines Corp. owns 5%. Prior to the change, Toyota held a 61% interest in Toyota Autoparts Philippines. Toyota Motor Philippines' stake in the company did not change.
The transaction follows Aisin and Toyota's agreement in 2014, in which both companies agreed to consolidate the manual transmission functions of Aisin's Aisin AI Co. Ltd., and those of Toyota.
Financial terms were not disclosed.
As of May 23, US$1 was equivalent to 52.53 Philippine pesos.
