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Automobiles

Toyota's mighty keiretsu system has met its match: digitization

Traditional parts suppliers receive less of what automakers spend on each car

Toyota, which has so far maintained its keiretsu, is expected to restructure overlapping businesses as the CASE era marches forward.

TOKYO -- The keiretsu system, which has helped Toyota Motor to become one of the most formidable players in the global auto market, is being breached by digital interlopers.

The Japanese term refers to a pyramid of businesses tied together via cross-held shares. In the car sector, the automaker stands atop the pyramid, with its suppliers sitting underneath.

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