Toyota City, Japan, March 5, 2018―Toyota Motor Corporation (TMC) announces a mutual agreement to merge three of its information technology (IT) subsidiaries as of January 1, 2019. The three companies involved in the merger are Toyota Communication Systems Co., Ltd. (TCS), Toyota Digital Cruise, Inc. (TDC), and Toyota Caelum Inc. (TCI).

Each of the three companies has its own area of expertise in different fields of IT: TCS in the development of core systems, TDC in the introduction and operation of networks and infrastructure, and TCI in the development of design and manufacturing support systems. The companies all have a long history of providing valuable services to support TMC and Toyota Group companies.

The role of IT is becoming increasingly important as the automotive industry faces a once-in-a-century transformational period of sweeping changes, including vehicle electrification, the adoption of intelligent technologies, and the emergence of new competition. To survive this transformational period, TMC has been pursuing efforts toward organizational and work-style reform and recognizes the importance of strengthening collaboration across the Toyota Group through IT, as well as promoting the adoption of innovative work processes and providing services that encompass the entire group.

As we enter an era in which objects, people, and services are continuously being linked together through networks, this merger aims to consolidate the specialized skills that the three companies have built up to seamlessly combine applications, infrastructure, and networks into complete IT solutions that integrate all aspects of service provision, from the planning and proposal phase to the service development, introduction, and operation phases. Through the continuous creation and provision of such high productivity solutions, the objective of this merger is to strengthen the capabilities of Toyota globally and the entire Toyota Group.

The details of the merger are as follows:

  1. Outline of merger

  1. Date of merger (planned)

    January 1, 2019

  2. Type of merger

    This merger is an absorption-type merger of TDC, TCI, and TCS, with the latter acting as the surviving corporation of the merger.

  1. Outline of new company (planned)

  1. Company name

    Toyota Systems Co., Ltd.

  2. Location of head office
    Two head offices
    Nagoya and Tokyo
  3. Capital

    Currently under consideration

  4. Equity participation / shareholding ratio

    Wholly owned subsidiary of Toyota Motor Corporation

  5. Number of employees

    Approx. 2,500

  6. Representative

    Currently under consideration

Outline of the three merging companies
  Toyota Communication Systems Co., Ltd. Toyota Digital Cruise, Inc. Toyota Caelum Inc.
Date established April 1990 April 1996 October 1993
Location Higashi-ku, Nagoya, Aichi Prefecture Naka-ku, Nagoya, Aichi Prefecture Higashi-ku, Nagoya, Aichi Prefecture
Representative Tetsuya Oshima Tetsuya Oshima Hiroshi Kawazoe
Capital 1.0 billion yen 0.8 billion yen 0.7 billion yen
Net sales
(fiscal year ended March 2017)
38.977 billion yen 22.9 billion yen 15.4 billion yen
Specialty business fields System development, maintenance, and operation Network introduction and operation, electronic data interchange (EDI) services Development, maintenance, and operation of CAD sales and design support systems
Number of employees
(as of January 2018)
1,337 622 289