The Strategist

Toyota to Buy Its Shares Back


06/16/2015 - 17:21



Japanese automaker Toyota Motor Corp. plans to buy back its own shares worth up to 600 billion yen ($ 4.9 billion), reports Bloomberg.



Paul David via flickr
Paul David via flickr
Due this shares repurchase, the automaker intends to limit the dilution of shareholders after the additional issue of securities.

Previously, the company approved a placement of new shares to long-term investors. Shares will be named "Model AA" in honor of the first automobile Toyota. They will be sold only in Japan, and will serve to attract investors who support substantial infusion of funds into the design of new cars, which is a long-term investment and not immediately pay off, the company said.

Many investors, especially foreign ones, did not welcome the decision. It was approved by approximately 75% of the shareholders, however, as a rule, decisions are taken by the majority of more than 90% of the vote.

Recall that Didier Leroy was recently appointed the new director of the company. He will be responsible for issues related to research and development work, production and sales in North America, Europe and Africa. Also, in his competence are issues related to the design and sporting activities in the above mentioned regions as well as the work of Japan Sales Business Group.

Didier Leroy got higher technical education in science and technology school, Nancy, and later joined the body of knowledge in the field of management. Leroy started his automotive career in 1982 in the company Renault, where he worked in various management positions related to production for sixteen years.

Toyota’s era for the Frenchman began in September 1998 as Vice President of Production at Toyota Motor Manufacturing France (TMMF). From 2007 to 2011, Didier Leroy worked in various positions at Toyota Motor Europe (TME), having achieved the post of President of TME and senior regional manager of Toyota in Europe.

From April 2012 to April 2015, Didier Leroy worked as a senior manager Toyota Motor Corporation. Now he not only became the first vice-president of TMC not of Japanese descent, but also a member of the board of the company.

Recall that important changes are taking place not only in the management of Toyota. Recently, the exchange of technology between companies Mazda and Toyota was reported. Japanese firms will work on more advanced and environmentally friendly hybrid model based on lie-efficient motors SkyActiv of second generation. In this regard, Toyota is not considering joining forces with Fiat.

source: bloomberg.com

 




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