Toyota Transforms Woven by Toyota into a Complete Subsidiary: Reason Behind Chairman Toyoda's Divestiture of Shares
Toyota Strengthens its Commitment to Mobility Transformation
Toyota Motor Corporation has announced that it will make Woven by Toyota (WbyT) a wholly owned subsidiary, as part of its strategic efforts to accelerate innovation and focus on advanced mobility solutions.
The move comes as Toyota aims to integrate self-driving features incrementally into its existing vehicle lineup and scale these technologies while maintaining profitability. WbyT, the company behind Woven City and in-vehicle software development, will play a crucial role in this endeavour.
Toyota already owns 95% of WbyT shares and plans to buy out the remaining 5%, currently held by Toyota Chairman Akio Toyoda. This structural change reflects Toyota’s commitment to mobility transformation and creating a future-facing auto technology platform separate from traditional vehicle manufacturing.
Akio Toyoda, in a broader corporate transition towards privatization and reorganization within the Toyota group, has decided to part with his shares. This includes Toyota Industries going private and the establishment of holding companies to better align with future business goals. Akio Toyoda’s decision supports the company’s shift to new governance and ownership structures aimed at ensuring Toyota’s long-term innovation and legacy preservation.
To reinforce the structure of WbyT, new executives from Toyota have been appointed. Hajime Kumabe, who forged outside partnerships during his time at Denso and J-QuAD DYNAMICS, was appointed CEO of WbyT. Denso's Chief Technology Officer, Yoshifumi Kato, was appointed as Executive Vice President of the new Software Development Center, which Toyota established to consolidate its software-related business and development.
Toyota's collaboration with WbyT has led to a shift in WbyT’s role, from independent development to handling projects outsourced by Toyota. This includes the new Software Development Center, part of Toyota’s efforts to speed up software integration in cars.
In addition, Toyota announced in early September that it would boost collaboration with WbyT and Denso, which have strengths in software implementation. This collaboration is expected to contribute to Toyota’s goal of improving mobility software development and use, as part of the Arene rollout starting in 2025, an in-vehicle OS and platform for mobility.
With these strategic moves, Toyota is positioning itself at the forefront of the automotive industry's transformation towards advanced mobility solutions, AI-driven technologies, and new mobility services.
Technology plays a significant role in Toyota's commitment to mobility transformation, with Woven City and in-vehicle software development being key areas of focus. The company is consolidating its software-related business and development by establishing a new Software Development Center, a move aimed at speeding up software integration in cars.
