Toyota Suzuki Agreement

Posted by on Apr 13, 2021 in Uncategorized | 0 comments

The two Japanese companies signed a Memorandum of Understanding for the development of a partnership in 2017 and have now concluded “concrete details” on the agreement. Both companies say the agreement will bring together “Toyota`s strength in electrification technologies and Suzuki`s strength in compact vehicle technologies.” The implementation of the Capital Alliance Agreement is a confirmation and expression of the outcome of sincere and careful discussions between the two companies and will serve to establish and promote their future partnership in new areas. The new agreement will not prevent the two brands from confronting each other “fairly and freely.” The merger has a significant impact on Maruti Suzuki India, India`s largest automaker, of which Suzuki is a majority shareholder. The deepening of relations between the two companies in Japan is already translating into closer cooperation between Maruti and Toyota Kirloskar Motor Ltd, Toyota`s Indian subsidiary. The two companies have already entered into a cross-badging agreement for products such as Baleno and Brezza de Maruti and Corolla of Toyota. The first of these, the Baleno, was recently upset and put on the market as Glanza by Toyota. Toyota Motor Corporation and Suzuki Motor Corporation have signed an agreement on a capital alliance to create and promote a long-term partnership and promote cooperation in new areas, including autonomous driving. Japanese auto groups Toyota and Suzuki Motor Corporation agreed on Wednesday to enter into a capital alliance agreement to deepen cooperation that began in 2016, with Toyota acquiring 4.94 percent of Suzuki`s shares worth 96 billion yen, while Suzuki will buy a much smaller stake in Toyota worth 48 billion yen. With a stake as of March 31, 2019, Suzuki, with its stake in Toyota, would take 0.21% in itself as of today. Toyota and Suzuki will develop their technology partnership by working on cooperation in new areas, as shown in a new agreement signed today. The two companies signed a Memorandum of Understanding for the first time on February 6, 2017 and are now looking for ways to deepen the partnership and make it more effective.

“With our new agreement, we welcome the wider use of hybrid technologies, not only in India and Europe, but around the world,” said Akio Toyoda, President of Toyota. “At the same time, we believe that extending our commercial partnership with Suzuki – from reciprocal delivery of vehicles and traction chains to development and production – will help us give ourselves the competitive edge we will need to survive this unique phase of profound transformation.” Under the recent agreement, Suzuki will buy hybrid gasoline systems for cars it sells worldwide from Toyota, which developed hybrid vehicles with the Prius more than 20 years ago, the companies said in a joint statement.