• Toyota Motor is considering a potential $42 billion buyout of its key supplier, Toyota Industries, which has a market value of approximately 4 trillion yen. The proposal, reportedly initiated by Toyota Chairman Akio Toyoda, aims to enhance corporate governance and streamline operations by unwinding cross-shareholdings. Toyota currently holds a 24% stake in Toyota Industries, which produces essential automotive components and has faced pressure from shareholders to improve returns and growth strategies.

• Toyota Industries has denied receiving a formal buyout proposal from the Toyota group, although it is exploring options for going private. This move could allow the company to focus on growth without the constraints of shareholder expectations. The potential buyout reflects broader trends in the automotive industry, where companies are increasingly consolidating to enhance operational efficiency and respond to market pressures.