Toyota and Suzuki have announced that the two companies have entered into an agreement regarding a capital alliance “in order to establish and promote a long-term partnership between the two companies for promoting collaboration in new fields, including autonomous driving.”
In a press release, Toyota said the purpose of the alliance is to engage in joint product development and collaboration in production, in addition to promoting the mutual supply of products, by bringing together Toyota's strength in electrification technologies and Suzuki's strength in technologies for compact vehicles.
The two companies intend to achieve sustainable growth, by overcoming new challenges surrounding the automobile sector by building and deepening cooperative relationships in new fields while continuing to be competitors, in addition to strengthening the technologies and products in which each company specializes and their existing business foundations.
To develop and promote a long-term partnership between the two companies, the companies plan to acquire each other's shares based on the Alliance. Toyota plans to acquire a 4.94% ownership of the total number of shares issued by Suzuki with a total value of JPY 96 billion. Likewise, Suzuki plans to acquire, through purchase in the market, shares in Toyota equivalent to JPY 48 billion.
These share acquisitions will be implemented after the companies obtain approvals from the foreign competition authorities.