Toyota to make South African subsidiary wholly owned

TOYOTA MOTOR CORPORATION (TMC) announced today that it has reached an agreement with its joint venture partner in South Africa, Wesco Investments Ltd. (Wesco), under which its local affiliate, Toyota South Africa (Pty) Ltd.

(TSA), will become a wholly owned TMC subsidiary. Under the agreement, TMC is to acquire Wesco's 25% share in TSA in late August 2008.

By making TSA a wholly owned subsidiary, TMC will put in place a structure better allowing it to strongly drive forward its South African production, sales, and export activities, as TSA is a holding company for Toyota South Africa Motors (Pty) Ltd. (TSAM), the local entity responsible for TMC's South African production and sales.

TSAM, which has maintained the leading market share in South Africa since 1980, sold 153,000 units there last year and currently holds a market share of 22.6%. As a base in TMC's global production and supply system, TSAM began exporting the "Hilux" and "Fortuner" models to other countries in Africa and to Europe in 2005, and launched exports of the "Corolla" sedan to other countries in Africa in October 2007 and to Europe in February 2008. TMC intends to continue to further enhance its production, sales, and export activities in Africa.

Outline of TSA

Company name Toyota South Africa (Pty) Ltd. (TSA)
Established  1963
Location Sandton, Republic of South Africa
Chairman E le R Bradley
Capitalization 601 million rand (approx. 8.4 billon yen)
Equity participation TMC: 75%, Wesco: 25%
Business Content Holding company of Toyota South Africa Motors (Pty) Ltd. and others

Outline of Wesco

Company name Wesco Investments Limited
Established 1968
Location Johannesburg, Republic of South Africa
Chairman E le R Bradley
Business content 25% shareholder of Toyota South Africa (Pty) Ltd.