Tokyu Car is currently a subsidiary of Tokyu Corporation, which also owns Tokyu Express Electric Railway. Tokyu Car's has suffered from escalating losses over the last three years due to the shrinking of the domestic market for new trains.
Turnover plunged from Yen 60.2bn in 2009-10 to Yen 35.5bn in 2010-11, while losses have grown from Yen 3.4bn to Yen 6.8bn.
JR East has its own train manufacturing plant in Niitsu, which Tokyu Car helped to set up and which has produced about 3600 emu cars during the last 17 years. JR East says the acquisition of Tokyu Car will provide it with the technology and know-how to produce almost all types of rolling stock including high-speed trains. This could provide JR East with a springboard for exports in the future.