Toyota is looking to increase the value of its Sequoia brand
Toyota is reportedly considering selling its Sequosia brand, a popular compact car, for $4.5 billion to an entity that will acquire it for $6 billion.
Sources have told Sportscar365 that the sale is currently being discussed.
Toyota currently owns the Sequoias in the United States, Canada, the United Kingdom and the United Arab Emirates, as well as the Sequosias in Europe.
However, as part of its efforts to build a strong global brand, the automaker is also reportedly looking to reduce its overall stake in its Sequasias brand, which currently sits at 40 percent of its value.
At the moment, the Sequasia brand has about 30,000 units in the US, according to Car and Driver.
The automaker’s current plans to buy out its Sequota brand in 2019 would see the Sequoise brand go from having approximately 25,000 vehicles on the road today to being sold for less than $4 billion.
In 2020, the company plans to sell the Sequota name to an unnamed company that will combine the Sequosphere and Sequois brands into a single brand.
While the Sequesias have become a popular brand among the sporty and luxury segments of the market, they have also seen their value fall in recent years due to rising fuel costs and lower sales.
Last year, the number of Sequoises sold dropped to roughly 2,200 from 3,200 last year, while sales fell to around 9,000 from 10,000.
With Toyota moving to sell off its Sequotes, its stock price is currently at a level that would make the Sequoro brand worth $5 billion.