Toyota Consolidates Woven by Toyota as a Full Subsidiary: Reason Behind Chairman Toyoda's Share Relinquishment
In a strategic move to bolster its competitiveness in the evolving automotive landscape, Toyota Motor Corporation has announced that Woven by Toyota (WbyT) will become a wholly owned subsidiary. This decision, announced on September 27, aims to accelerate the development and integration of software systems crucial for next-generation vehicles, particularly electrified and software-defined vehicles (SDVs).
The move aligns with a broader corporate restructuring and strategic renewal initiated by Toyota Chairman Akio Toyoda. Akio Toyoda's decision to part with his shares in WbyT is part of this broader strategy, reflecting a commitment to structural reform, innovation, and new business creation to position Toyota for the coming era of mobility and technology-driven transformation.
A New Era for WbyT
WbyT, formerly known as Woven Planet Holdings, changed its name to Woven by Toyota in April. The new CEO of WbyT, Hajime Kumabe, brings a wealth of experience in forging outside partnerships, having worked at Denso and J-QuAD DYNAMICS, a developer of automated driving software, established as a joint venture by Toyota Group members in April 2019.
Under Kumabe's leadership, WbyT is now handling projects outsourced by Toyota, shifting from independent development. This closer collaboration between Toyota and WbyT is aimed at strengthening the relationship to accelerate software implementation in social systems and vehicles.
The Role of WbyT in Toyota's Future
One of the key projects under WbyT's purview is the development of the Arene system. This in-vehicle OS and platform for improving mobility software development and use represents Toyota's first public step towards full SDV capabilities. The Arene system supports driver-assist and multimedia functions and is vital for Toyota's vision of future mobility solutions.
Moreover, WbyT is responsible for the development of Woven City, a futuristic city designed to test and refine autonomous vehicles and smart city technologies.
Collaboration with Denso
Toyota has also announced plans to boost collaboration with Denso, another company with strengths in software implementation. Denso's Chief Technology Officer, Yoshifumi Kato, has joined Toyota's new Software Development Center as Executive Vice President, further strengthening this collaboration.
The Journey Ahead
Toyota's strategic focus on software and automation indicates a commitment to staying at the forefront of the evolving automotive industry. The company plans to buy out the remaining 5% stake held by Toyota Chairman Akio Toyoda by the end of October, fully consolidating WbyT as a wholly owned subsidiary.
This move comes in the context of an Arene rollout starting in 2025, marking a significant step towards Toyota's vision of future mobility solutions. The company is transitioning the development of Arene-equipped products from preliminary phase to implementation, signalling a shift towards practical application of these technologies.
In summary, Toyota's decision to fully own WbyT is part of a broader strategic renewal aimed at focusing on innovation, future mobility solutions, and safeguarding Toyota's legacy for the next generation. The company's commitment to software and automation is a testament to its determination to stay competitive in the evolving automotive landscape.
The acquisition of WbyT by Toyota Motor Corporation, a move aimed at enhancing software development for next-gen vehicles, emphasizes Toyota's strong interest in the intersection of finance, technology, and the automotive industry.
The restructuring of Toyota's business strategy, as led by Chairman Akio Toyoda, has seen the creation of new division WbyT, which is currently focused on developing the Arene system, a crucial component in Toyota's vision of technology-driven future mobility solutions. This system, designed to improve automotive software development and use, combines finance, technology, and the automotive industry to foster innovation.
