Toyota to Trim Stake in Denso, Raising Cash for Shift to EVs (1)

Toyota Motor Corp. and its affiliated suppliers will cut their shareholdings in electric parts maker Denso Corp., freeing up money that can be used to fund their shift to electric vehicles.

The world’s biggest carmaker plans to lower its stake in Denso to 20% from 24%, it said in a statement Wednesday. That could generate about ¥287 billion ($1.9 billion), based on Denso’s latest stock price. Denso said it will buy back as much as ¥200 billion worth of its own shares.

Japanese companies have been under pressure to reduce or eliminate their cross shareholdings. Toyota and its suppliers ...