horizontal keiretsu

horizontal keiretsu
A keiretsu system where the keiretsu member companies have shareholdings in each other. The opposite is vertical keiretsu. The member companies own relatively small chunks of shares in one another and are each centered on a core bank; the keiretsu system helps insulate company managements from stock market fluctuations and take-over attempts, allowing long-term planning and engagement in innovative projects; it is a key element of the automotive industry in Japan

Dictionary of automotive terms. 2015.

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