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Toyota and Suzuki confirm details of new 'Alliance'
Each plans to acquire shares in the other, but remain competitors, to achieve sustainable growth
Toyota and Suzuki have announced plans to acquire a financial stake in eachother's operations, as part of a move towards a collaborative development programme.
Toyota plans to take a 4.94% stake in Suzuki at a cost of £743.3 million for 24 million shares of common stock. Suzuki, meanwhile, will invest roughly £372 million in Toyota. The deal is awaiting approval from the foreign competition authorities.
The difference in investment amounts reflects Toyota's inflated value; in 2018, the company became the first Japanese firm to achieve annual sales of 30 trillion yen (£232 billion), while Suzuki achieved roughly a tenth of that, at 3,871.5 billion yen (£28 billion).
A statement from Toyota read: "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.
"Specifically, to take up challenges together in this transitional era, the two companies plan to establish and promote a long-term partnership between themselves, for promoting collaboration in new fields, including the field of autonomous driving."
In March, the two companies announced the first details of a new wide-ranging collaboration, which will involve Toyota producing Suzuki-badged hybrid vehicles based on the RAV4 and Corolla estate for the European market. The deal will include Suzuki vehicles being built at Toyota's Derbyshire plant.
www.autocar.co.uk
Each plans to acquire shares in the other, but remain competitors, to achieve sustainable growth
Toyota and Suzuki have announced plans to acquire a financial stake in eachother's operations, as part of a move towards a collaborative development programme.
Toyota plans to take a 4.94% stake in Suzuki at a cost of £743.3 million for 24 million shares of common stock. Suzuki, meanwhile, will invest roughly £372 million in Toyota. The deal is awaiting approval from the foreign competition authorities.
The difference in investment amounts reflects Toyota's inflated value; in 2018, the company became the first Japanese firm to achieve annual sales of 30 trillion yen (£232 billion), while Suzuki achieved roughly a tenth of that, at 3,871.5 billion yen (£28 billion).
A statement from Toyota read: "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.
"Specifically, to take up challenges together in this transitional era, the two companies plan to establish and promote a long-term partnership between themselves, for promoting collaboration in new fields, including the field of autonomous driving."
In March, the two companies announced the first details of a new wide-ranging collaboration, which will involve Toyota producing Suzuki-badged hybrid vehicles based on the RAV4 and Corolla estate for the European market. The deal will include Suzuki vehicles being built at Toyota's Derbyshire plant.
Toyota and Suzuki confirm details of new 'Alliance' | Autocar
Each plans to acquire shares in the other, but remain competitors, to achieve sustainable growth
www.autocar.co.uk
