Toyota, Matsushita Elec raise cross-shareholdings

Tokyo, June 26: Toyota Motor Corp. and Matsushita Electric Industrial Co. have bolstered their cross-shareholdings as they attempt to solidify their business ties, which now centre on producing batteries for hybrid cars.

According to a securities filing by Toyota on Monday, the world's biggest automaker owned 20.7 million shares in the Japanese electronics maker, or a Toyota spokesman declined to confirm the increase in cross-shareholdings but said: ''Toyota is taking into account future needs for growth in the context of its relationship with business partners, and buying shares in them wherever necessary.'' The two firms together own Panasonic EV Energy Co., a maker of batteries for Toyota's hybrid vehicles. Other Japanese automakers such as Nissan Motor Co. and Mitsubishi Motors Corp.

have also formed similar ventures to develop next-generation batteries, whose application is expected to grow with the increase of hybrid and other electric cars.

Shares in Toyota were down 0.4 percent at 7,630 yen by early afternoon, while Matsushita Electric Industrial was down 0.2 percent at 2,470 yen. The benchmark Nikkei average was up 0.04 percent.

Reuters>