Toyota Prepares for Digital Age by Merging Three IT Subsidiaries

Toyota Motor Corporation has announced that the company is planning to merge three of its IT subsidiaries with effect from January 1, 2019. The three companies that will be merged are Toyota Communication Systems Co., Ltd. (TCS), Toyota Digital Cruise, Inc. (TDC), and Toyota Caelum Inc. (TCI). The merged entity will go by the name of Toyota Systems Co Ltd.

Each of the IT companies has its own specific area of expertise with TCS focusing on the development of core systems, TDC dealing with introduction and operation of networks and infrastructure, and TCI on the development of design and manufacturing support systems.

The role of IT has become increasingly important in the automotive industry as the industry is going through a period which has witnessed breakthrough developments like the use of connectivity in cars, vehicle electrification, and the adoption of intelligent technologies. This prompted this latest move by Toyota to strengthen collaboration across the Group through IT by merging the three companies as part of organizational reform. It is expected that this will help the company to consolidate the specialized skills that the three companies have developed to facilitate the development of complete IT solutions.
Toyota expects that by integrating all aspects of service provision, it will strengthen the capabilities of Toyota globally and the entire Toyota Group. The new company will have two head offices – one in Tokyo and one in Nagoya.