Toyota Consolidates Woven by Toyota: Reason Behind Chairman Toyoda's Relinquishment of Shares
Toyota Motor Corporation has announced a significant shift in its digital strategy, with the aim of accelerating its innovation in mobility and enhancing its competitiveness in the global automotive technology market. As part of this strategy, Woven by Toyota (WbyT), the company's subsidiary responsible for digital and future mobility initiatives, will become a wholly owned subsidiary.
The decision to make WbyT a wholly owned subsidiary is part of Toyota's broader strategy to drive digital innovation, break down internal information silos, and lead future mobility projects. These projects include autonomous driving and smart city initiatives such as the development of Woven City.
In a strategic reorganization and privatization process aimed at safeguarding the Toyota legacy while positioning the company for future growth and innovation, Toyota's Chairman Akio Toyoda has parted with his shares in WbyT. This move reflects Toyoda’s commitment to returning the company to its roots and creating a new holding company structure to better support Toyota’s transformation towards new technologies and business models.
Hajime Kumabe, who previously worked with J-QuAD DYNAMICS, a developer of automated driving software, has been appointed as the CEO of WbyT. Kumabe's experience in forging outside partnerships will be instrumental in WbyT's mission to lead Toyota's efforts in advancing digital and future mobility innovations.
The new Software Development Center, established by Toyota, aims to consolidate its software-related business and development. In this regard, Denso's Chief Technology Officer, Yoshifumi Kato, has joined Toyota's new Software Development Center as Executive Vice President. Denso, a company with strengths in software implementation, will undoubtedly contribute to Toyota's software development efforts.
WbyT has shifted from independent development to handling projects outsourced by Toyota. This move is in response to the upcoming rollout of the Arene in-vehicle OS and platform, starting in 2025. The Arene rollout aims to improve mobility software development and use.
Toyota plans to buy out the remaining 5% stake, held by Toyota Chairman Akio Toyoda, by the end of October. This move further solidifies WbyT's position as a wholly owned subsidiary of Toyota Motor Corporation.
The structure of WbyT has been reinforced with the arrival of new executives from Toyota. The company, currently 95% owned by Toyota, is poised to play a crucial role in Toyota's digital transformation and its future in the automotive technology market.
In early September, Toyota announced its intention to boost collaboration with WbyT and Denso. This collaboration is expected to further strengthen Toyota's digital presence and its ability to compete with global tech-focused automakers.
As Toyota invests heavily in electric vehicles, digital transformation, and new mobility ventures, the transformation of WbyT into a wholly owned subsidiary is a significant step towards achieving its goals. The company's focus on digital innovation, breakthrough technologies, and future mobility projects positions it well for the challenges and opportunities of the future.
- Toyota Motor Corporation's transformation of WbyT into a wholly owned subsidiary is a strategic move to strengthen its leadership in the global automotive technology market and drive innovation in digital mobility.
- Hajime Kumabe's appointment as CEO of WbyT will play a pivotal role in Toyota's ambition to advance digital and future mobility innovations, leveraging his experience in forging outside partnerships.
