Toyota, Suzuki alliance to focus on joint development, autonomy
Each company will acquire a small stake in the other.
Toyota and Suzuki have finalized plans to form an alliance involving collaboration on development projects and autonomous driving technology.
The long-term capital alliance will be anchored by minority stake acquisitions. Toyota will spend around $900 million USD for a 4.94-percent stake in Suzuki. In return, the smaller automaker will acquire shares in Toyota worth approximately $450 million.
The announcement highlights Suzuki's prowess in compact vehicle segments, brought together with Toyota's strength in electrification technologies.
"Specifically, to take up challenges together in this transitional era, the two companies plan to establish and promote a long-term partnership between the two companies for promoting collaboration in new fields, including the field of autonomous driving," the automakers said.
Toyota last year announced plans to spend $2.8 billion to develop "production-quality" software for autonomous vehicles. The partnership with Suzuki aligns with a wider industry trend as automakers consolidate their self-driving development efforts in the race to commercialize the technology.