Toyota Motor CEO Koji Sato indicated the company does not anticipate an immediate chip shortage from recent Chinese export restrictions on Nexperia, though production risks are being closely monitored, with the industry moving to standardize legacy chips. Concurrently, Sato affirmed that Toyota has no plans to revise its 16,300 yen tender offer for Toyota Industries, despite shareholder criticism that the bid undervalues the company, emphasizing a commitment to transparency and minority shareholder interests in the privatization process.
Toyota Motor CEO Koji Sato stated the company does not foresee an immediate chip shortage from recent Chinese export restrictions on Nexperia, though production risks are under close observation. This contrasts with smaller rival Nissan, which reported having sufficient chips only until the first week of November. The broader Japanese automotive industry is proactively standardizing legacy chips to mitigate future supply vulnerabilities, learning from past pandemic-induced disruptions. Separately, Sato confirmed Toyota's intent to proceed with its 16,300 yen per share tender offer for Toyota Industries, despite shareholder criticism of undervaluation. While the offer provides a premium over historical averages, it is below the price prior to the announcement. This privatization, part of a broader group restructuring, emphasizes high transparency and careful consideration of minority shareholder interests, aiming for broad stakeholder understanding.
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