Toyota and Suzuki have officially created a capital alliance, with both car makers to take small equity stakes in each other with the aim to cooperate in the development of autonomous driving tech and in sharing powertrains and other systems.
The details of the Toyota-Suzuki alliance include Toyota spending $910 million a 4.94 percent stake in Suzuki. Likewise, Suzuki will acquire $452 million worth of shares in Toyota, which is equivalent to a 0.2 percent stake.
The two Japanese car makers said in a joint statement that they “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”.
Last March, the two companies said that Toyota will contribute with its expertise in electrified powertrains, while Suzuki will share its latest engines, developed for use in compact and small cars.
The first products of the alliance will include a pair of Suzuki hybrids for the European market, based on the RAV4 and Corolla Wagon. Toyota will also get to produce Suzuki-designed engines in its factory in Poland.
The two Japanese automakers will also work together on the development of hybrids targeted at the Indian market, with Suzuki set to produce two compact vehicles for Toyota based on the local Ciaz and Ertiga, as well as four other models for the African market.
Toyota already owns Daihatsu and Hino Motors, and holds a 16 percent stake in Subaru and a 5 percent stake in Mazda.