Toyota and Suzuki announced an agreement on the establishment of the new Alliance and the redemption of the shares from each other.
Toyota and Suzuki have announced a new Alliance on a long term basis, which also provides for the joint development of cars with autopilot. This is reported by the press service of the Japanese automakers.
According to the agreement, Toyota acquires of 4.94 percent stake in Suzuki cost 96 billion yen (907 million U.S. dollars), while Suzuki agrees to buy the shares for “Toyota” in the amount of 48 billion yen (453 million dollars). At the moment the transaction is awaiting the approval of Japanese regulatory authorities. One of the main points of the agreement is a “joint work in new areas, including in the field of ethereal control”.
Two Japanese companies have begun to discuss the possibility of creating a new Alliance even in the fall of 2016, but then the details of a possible partnership were not disclosed. In the spring of 2019, it became known that in the framework of the business cooperation will provide Suzuki Toyota experience in the field of the design of small engines as well as subcompact cars.
In response, Toyota will provide Suzuki the technology in the field of design of combined and all-electric propulsion systems of hybrid and electric vehicles. Thus Suzuki is planning to strengthen its position in the European market due to the release of its brand new two hybrids and electric vehicles on the basis of models of the RAV4 and Corolla.