Toyota Buys Daihatsu Compact Car Division

Daihatsu has been a division of Toyota that focused on the compact segment since 1988, when Toyota owned 51 percent of the company and brought it under the brand’s umbrella. Since then, Daihatsu has mostly stayed out of the US, but contributed to the American car market by building some Scion cars, such as the recognizably unique Scion xB. However, Toyota recently purchased the rest of the company in order to focus on Daihatsu compact cars and bring smaller cars to the forefront of its brand.

It is exactly this sort of strategy that has kept the Toyota name as the number one best-selling global brand spot for the past five years. Not content to sit by, enjoy its success, and allow the other competing auto makers to catch up, Toyota took a look at its figures and discovered that minicars are the brand’s weakest lineup in terms of sales. In order to patch up that blight on its sales statistics, Toyota decided to purchase Daihatsu in order to bring the expertise and skills of a company experienced in the production of compact cars into its brand.

The arrangement means we’ll be seeing more Daihatsu compact cars on the market, as well as vehicles that the smaller brand name has made for both its parent company and, perhaps, for Scion’s lineup. Toyota will be bringing more competition to the compact segment following the integration of Daihatsu into the company.