Toyota/Daihatsu: what's in a name?

By DAVID LINKLATER

A Daihatsu by any other name ... is a Toyota. At least that's what Toyota New Zealand (TNZ) says as it prepares to take over the distribution and marketing of the small-car brand from Daihatsu New Zealand (DNZ), which is ceasing operations after 27 years.

DNZ blames a decline in the small car market, used imports and exchange rate fluctuations for the closure.

Starting from May 1, Daihatsu vehicles will be sold through the 54-strong TNZ dealer network.

Somewhat controversially, Daihatsu sales will also count towards TNZ's total registrations. The company does the same with its Lexus luxury brand in its battle for the number one sales spot with Ford and Holden, which it has retained for the past 14 years.

The numbers won't be huge. Daihatsu has been operating at less than 1 per cent of the market in recent years and even with TNZ superior marketing muscle it isn't expected to rise above 2 per cent.

Toyota and Daihatsu have had close ties in Japan since 1967. Toyota owns 51.2 per cent of Daihatsu and the two companies collaborate on technology and new model development.

However, Daihatsu remains a stand-alone company and elsewhere in the world it is distributed and sold separately to Toyota. TNZ says its full integration of the two brands is a world-first.

"Daihatsu is now part of the Toyota group back in Japan," says TNZ managing director and chairman Bob Field.

"Its financial results are consolidated with Toyota. They share the same platform at motor shows and their market share results are combined.

"From the end of this month we will be introducing a fully integrated structure whereby Daihatsu product will be marketed through Toyota dealers as an extension to the Toyota range.

"We will preserve the Daihatsu brand at retail level but, in every other sense, Daihatsu business becomes synonymous with Toyota."

TNZ says that it will adopt a "sale is a sale" approach to the two brands - there is some crossover between models, but it won't be an issue if a potential Toyota Echo buyer switches to a Sirion or vice-versa. Dealers will not have separate sales targets for each make - just one for "Toyota" product overall.

TNZ has rationalised the Daihatsu range for its relaunch. The slow-selling Move, Pyzar and YRV mini-MPVs have been dropped, although the door is open for the YRV to return when a facelifted version appears later this year.

The Sirion is still the most significant car in the line-up and has had a minor facelift. The sub-Echo sized hatch now looks less retro, with a new Corolla-style grille and less brightwork. Mechanically it's unchanged, but a new dashboard has lifted quality levels considerably. Prices have also risen by about $1000. The entry Sirion 1.0 is now $18,200. The 1.3 GTvi has been renamed the GS and starts at $20,490. TNZ says that it was uncomfortable with the car wearing a sporty badge, although the Sirion is more powerful than the Echo 1.3 and substantially quicker than the pseudo-sporty Echo 1.5 TS.

The Mira continues at $16,195, while the Terios is down to one unbadged model that's equivalent to the old TRS grade.