Toyota, Suzuki agree on capital tie-up
NAGOYA, Kyodo - Toyota Motor Corp. and Suzuki Motor Corp. said Wednesday they have agreed on a capital tie-up to jointly develop advanced technologies necessary for autonomous vehicles, amid intensifying competition with rivals.
Under the deal, Toyota will acquire a 4.94 percent stake in Suzuki for about 96 billion yen ($907 million), while Suzuki plans to hold a Toyota stake worth about 48 billion yen.
Toyota and Suzuki agreed in February 2017 to launch negotiations for a business partnership in areas such as environmental, safety and information technologies. Since then, relations between the two Japanese automakers have grown closer.
Under the deal struck last year, the automakers said they plan to mutually supply their cars in India, where Suzuki has a strong footprint.
Suzuki will offer Toyota with its locally manufactured vehicles such as the Baleno compact car and the Vitara Brezza compact sport utility vehicle, while Toyota will provide Suzuki with its Corolla sedan.(Kyodo)