Breakingviews – Capital Calls – Japanese producers go back in time

Toyota Project Portal hydrogen fuel cell electric semi-truck is on display at an event in San Francisco, California, USA, September 13, 2018. REUTERS / Stephen Lam

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ALLBAN REBEL. Toyota Motor, the commercial truck unit of Hino Motors and Isuzu Motors has announced a new joint venture to develop connected trucks and fuel cells. That could serve Tokyo’s effort to reduce its national carbon footprint, and Toyota’s hopes of becoming a leader in clean vehicle development. In fact, Isuzu and Toyota are also buying 42.8 billion yen ($ 394 million) in each other, returning to a cross-sectional structure they abandoned in 2018. The settlement is particularly strange because Hino , in which Toyota has 50%, competes with Isuzu.

That complicates Toyota’s expanding list of friendly but pointless holdings in competitors, including major commitments in Subaru and Mazda Motor, as well as a series of strategic partnerships. related to clean energy, technology sharing agreements, and so on. Shares in Toyota, which is already down sharply from the March 13 high, will shed another 2% announced; Isuzu, in which Toyota now owns a share of 4.6%, popped over 5%. The Japanese government is trying to improve governance and productivity for shareholders. On this front Toyota’s new venture looks impure. (By Pete Sweeney)

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