By Tom BoonenYamaha has made its local banking and finance systems a major focus in the company’s strategy for the global expansion of its local and global business.
The Japanese automaker’s local finance system will become the first of its kind, as it launches a new platform that will allow investors to buy shares in local companies.
Yamahas chief financial officer Takashi Nakamura says it will give investors access to the local company’s financials and operations, which will be shared with the global company, with the aim of increasing its share price.
The company has been looking for ways to expand its local business since its announcement in February that it would sell its local operations to a US-based private equity firm.
The move sparked concern in Japan, where companies such as Honda, Nissan and Mitsubishi Motors have all sold their local operations.
Yamaguchi Shigeru, president of the local finance association, says the system will give companies access to a database of assets that will provide the financial and operational information necessary to grow their businesses.
“We want to encourage local businesses to participate in the local economy,” he said.
“This will allow us to make sure the business is in the best shape for the future.”
The system, which is being developed in collaboration with the Yamanashi-based Japanese-based Japan Finance Consortium (JFC), will allow Japanese investors to invest in local businesses through the company.
The JFC says the program will allow for more transparency in the financials of local businesses, and will enable companies to invest more efficiently in areas such as finance, accounting and payroll.
The program will also allow companies to have access to Japan’s public pension funds and to make investments through the JFC’s pension fund.
The new system will also provide better access to Japanese pension funds, which are heavily invested in local financial institutions.
The Japanese-style system, known as the Jfc, has been used in other countries, such as the US and Germany.
Yamanashima is the first Japanese automakers to set up a regional finance program, following a successful pilot program in the US.
The company will roll out the program in 15 cities across Japan over the next five years, starting in Tokyo.
In a statement, the company said it plans to launch the system “soon”.
Yokohama, the city where the company will be operating, has already seen its share prices fall from $2.65 in May 2016 to $1.90 on Tuesday.