Toyota Motor Corp & Dentsu Group to Launch New Business Structure


Toyota Motor Corp & Dentsu Group to Launch New Business Structure
Toyota Motor Corp join hands with Dentsu Group to launch a new business structure and establish both the companies. Further, the collaboration is expected to improve Toyota's communications and digital transformation. The companies would commence their operations from January 2021, for innovating marketing and creating mobility businesses. 
Both the companies would function under a holding company, of which Toyota would own 66 percent while Dentsu would posses 34 percent. However, Toyota's subsidiary Delphy's has the potential in automotive marketing and the domain of retail centered on automotive sales. 
Furthermore, Toyota is planning to transform Delphys into an entity that, extending beyond the conventional framework of an advertising agency. The company is also expected to pursue innovation of communication towards brand-building that aid in building customer trust. Moreover, the innovation of marketing that brings in the transformation of the times such as the advancement of a digital society and the challenges of executing business in a mobile society.   
Toyota, Dentsu Group, and Delphys has concluded the agreement in September 2020. The agreement focuses on a capital and business alliance that would include a capital increase in Dentsu Group by Delphys through third-party allocation. On this basis, both the companies would launch the new business structure. 
Implementing the new business structure, without restricted to hitherto methodology and by going over the domain of advertising agencies. Companies intend to consider the customer requirement and try to meet their expectation. 
After obtaining approval and such from the competition authorities in the countries concerned. Dentsu Group would prefer to invest in Delphys, with the preparations being made toward the launch of the new business structure scheduled for January 2021.