Toyota and Suzuki Innovate Together
New Global Example of the Rules of the Road to Innovation
Toyota and Suzuki are taking small equity stakes in each other. The purpose, according to the Japanese automakers, is to develop new innovative technologies and come out on top in the rapidly changing global automotive industry.
Deepening Japanese Alliance
This announcement deepens the alliance between the two global automakers with Toyota taking a 4.9% stake, amounting to $908 million, in the smaller rival Suzuki, which owns Mazda and Suburu. Suzuki is investing $453 million in Toyota for 0.2% of Toyota shares.
All About Developing Expensive Electric and Autonomous Technologies
Today's R&D innovation tie-up between Suzuki and Toyota is another leading example of the technology partnerships in the global automotive industry. It's all about joining forces, with big competitors, to defray the costs of developing very expensive new technologies for electric and autonomous vehicles.
Once in a Century
Automotive experts are calling this environment as a once in a century shift to electrification of electric vehicles. Another example is VW and Ford collaborating on electric and autonomous vehicles. Toyota and Suburu already collaborate on hybrid technology for compact vehicles. They also collaborate in markets like Europe and India.