Toyota Officially Seals Deal With Suzuki, Forms New Capital Alliance

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”.

Also Read: Suzuki To Offer Toyota-Based Hybrids In Europe Thanks To New Global Agreement

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.

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  • 85ZingoGTR

    Hopefully Suzuki will improve their reliability. My SX4 was certainly not the most reliable car I ever had. At only 24k miles it already needed a muffler replacement. Thats after the navigation system crashed. Being a Chrysler owner in the 90s and knowing that cars that show problems of this magnitude this early on is a sign of what’s to come it was a no brainer that I got rid of it immediately.

    • PhilMcGraw

      The SX4 was codeveloped with Fiat. If you look at the last sedan they made for the US market, the Kizashi, you will find many examples of them for sale at 200k or more miles. They were very reliable and for good reason: it was made by Suzuki in Japan and shipped over. Reliability was top notch.

  • jason wu

    Good news. Now Toyota can throw FTX4 into trash can and get Jimny in the states.

    • illogicalPotato

      The FT4X is a concept car, which is pretty badass to me. Jimny isn’t certified safety certified for US spec and they don’t plan to come back to this market.

      • jason wu

        That’s when Toyota comes into the play to remove all the hurdles to make Jimny available in the states. FT4X has a uncertain future while Jimny is already selling like hotcakes in the rest of the world. It’s obvious which makes a better business case.

    • PhilMcGraw

      Well the FT-4X was actually a very good looking concept (especially for Toyota). And I’m doubtful they would bring the Jimny over because it’s a small two door vehicle. Two door vehicles do not sell well in the US. The FT-4X was a 4 door concept. Also it’s not aerodynamic which would hurt in fuel economy which Toyota follows the California regulations and they are introducing more and more hybrids.

  • charlotteharry57

    Time to place bets on Toyota buying Suzuki (and maybe even Mazda). The Jimny can’t be certified as crash-worthy in the US, so fugedaboutit.

    • ME

      Reinforcements can be inserted, Pal.

  • Julien Lachemoi

    I own the latest Swift and I am glad Suzuki will get some help with autonomous driving but I do wonder what’s in it for Toyota ?

  • Six_Tymes

    Please don’t make Suzuki UGLY like Toyotas

  • Tumbi Mtika

    All I’m hearing is “Jimnys to the US”, and I like hearing that.

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