The two companies first signified their intention to consider potential partnership opportunities in 2016. In March of this year, they also confirmed their planned engagements in joint product development, which would utilize the strengths of each brand: Toyota’s electrification technologies and Suzuki’s technologies for compact vehicles. Now, it seems that the Japanese carmakers look to solidify their long-term partnership as they enter into a capital alliance agreement.
Through this newly inked alliance, Toyota and Suzuki seek to achieve sustainable growth to keep up with the dynamic landscape of the automotive industry. While the two remain to be competitors, both are looking to collaborate in new fields such as autonomous driving.
Toyota is set to acquire 24,000,000 shares of common stock in Suzuki, which amounts to 4.94% of Suzuki’s total shares (excluding treasury shares) as of March 31, 2019. The said shares are valued at ¥96 billion. Suzuki, on the other hand, will acquire Toyota’s shares amounting to ¥48 billion through purchases in the market.
What results would you guys want to see from this new joint venture?