Tokyo: Japanese auto majors Toyota Motor Corporation and Suzuki Motor Corporation on Wednesday said they will acquire stake in each other as they seek to strengthen their alliance.
As part of a capital alliance agreement, Toyota will acquire 2.4 crore shares of common stock in Suzuki (4.94 per cent stake) for 96 billion yen (over Rs 6,510 crore),
while Suzuki plans to acquire shares in Toyota equivalent to 48 billion yen (around Rs 3,255 crore). On October 12, 2016, the two companies had first announced their business partnership.
In March this year, they agreed to engage in joint product development and collaboration in production, in addition to promoting mutual supply of products by bringing together Toyota's strength in electrification technologies and Suzuki's strength in technologies for compact vehicle.
Elaborating on the reasons for their capital alliance, Toyota and Suzuki in a joint statement said that the automobile sector is currently experiencing a turning point unprecedented in both scope and scale, not only because of enhanced environmental regulations but also from new entries from distinct industries and diversified mobility businesses.
Toyota and Suzuki will jointly take up challenges together in this transitional era and plan to establish and promote a long-term partnership for promoting collaboration in new fields, including the field of autonomous driving, the statement added.