Two marquee Japanese businesses—Dentsu and Toyota Motor—have teamed up to devise innovative solutions for the rapidly evolving automobile industry. As part of this move, Dentsu will take an undisclosed stake in the automaker's Delphys subsidiary and also own 34% in a new joint venture with Toyota focused on devising innovative marketing solutions for the automobile industry.
In September 2020, Toyota, Dentsu Group and Delphys entered into an agreement. including allotment of capital to Dentsu Group by Delphys. Based on the agreement, the companies will launch this new business structure. After obtaining required approvals, Dentsu intends to invest in Delphys, with preparations being made towards the launch of the new business structure in January 2021.
According to a company statement, there will be three entities in this new joint venture, all yet unnamed. Operating company 1 will focus on brand-building, innovation in marketing offerings that anticipates changes in society and technology, while the second entity will engage in digital communications for the automobile industry. The holding company will preside over operations of these two entities and will conduct strategic decision-making related to innovation in marketing, the statement added.
Toyota and Dentsu are unveiling this venture due to advances in areas such as Case (connected, autonomous, shared, electric) and Mobility as a Service (MaaS)—anticipating that the world is "approaching an era in which all of the things and services that support people's lives are connected by information." Toyota is focussed on creating business models that "bring new value and happiness to its customers."
The new business structure to be launched will integrate Delphys capabilities in automotive marketing with Dentsu's advertising and marketing heft. As a result, it will pursue brand-building that generates customer trust and address the challenges of executing businesses in a society getting to grips with new mobility offerings from automakers such as Toyota.