David Crandall, president of new company Toyota Industries Global Commercial Finance.

Toyota Industries Corporation (TICO) is establishing Toyota Industries Global Commercial Finance Inc (TIGCF), a wholly owned subsidiary that will serve as its global sales financial management company.

The new US-headquartered firm will help TICO achieve its goal of boosting its industrial vehicle operations and growing its global sales finance operations for materials handling equipment.

TICO says it will also establish Toyota Industries Commercial Finance Inc (TICF), a wholly owned US sales finance subsidiary of TIGCF, after reaching an agreement with Toyota Motor Credit Corporation (TMCC) to acquire all assets related to the company's commercial finance business. The acquisition is estimated to be worth about USD2 billion and is expected to finalise in April 2015.

TMCC is a US finance subsidiary of Toyota Motor Corporation.

TICO's board of directors has approved the establishment of TIGCF and TICF, and the board for both TICO and TMCC has also approved the acquisition of TMCC's commercial finance business assets.

According to TICO, the acquisition will enable it to build an organisation that will globally promote and manage sales finance operations, capitalising on the know-how and human resources the business has accumulated over about 30 years.

"By providing a total solution, including financial services, to its customers, TICO aims to further expand its industrial vehicle business," the company explains in a statement.

TIGCF, with a capital of USD400 million, will be established this month at Torrance, California, USA. Commencing operations in April 2015, TICO executive vice president Chiaki Yamaguchi will be the chairman, while TMCC vice president David Crandall will be transferred to TIGCF to serve as president.

TICF, with a capital of USD400 million, is also planned to be set up this month and commence operations in April 2015. Its head office will also be in Torrance. David Crandall will be the chairman while Norman Creveling, general manager of TMCC Commercial Finance Division, will be president.