Hiroshi Okuda, president of Toyota Motors Corp., hinted Wednesday at a possible expansion by the Toyota group into the financial sector, while strengthening bonds with other companies within the group.
Okuda has already disclosed the automaker's plans to increase its 20.1 percent stake in Hino Motors Ltd. and a 33.4 percent stake in Daihatsu Motor Co. to over 50 percent, and Okuda's remarks indicate that such moves within the group will not be limited to the automobile sector.
Okuda denied any intention of entering the non-life insurance business at the moment because Chiyoda Fire & Marine Insurance Co. is already within its group. However, he also said that anything is possible once the taxation structure for holding companies becomes clear.
Following the revision of the Antimonopoly Law last year, companies are now able to establish holding firms. But many of them are still reluctant to do so because the current tax system does not allow consolidated tax payments offsetting profitable and loss-making subsidiaries in a corporate group.
"Once the taxation structure of a shareholding company becomes clear, various possibilities will emerge," Okuda said, adding that the Toyota group is also interested in entering the securities business in the future.
"We are gathering power to strengthen our group and are steadily preparing for the days to come," Okuda said.