Toyota and Suzuki are forming alliance to create magic in the automotive industry. See the details of their highly publicized partnership!
Toyota and Suzuki have demonstrated the fact that we can all achieve great things if we support each other. The two leading Japanese automakers have decided to work together by acquiring stakes in each other’s company in order to foster sustainable development.
Naijauto.com gathered that Toyota is set to acquire a 4.94% stake in Suzuki at the rate of £743.3 million (₦298.2 billion). The amount will cover common stock of 24 million shares. On their own part, Toyota will receive about £372 million (₦149 billion) from Suzuki in investment. The arrangement will be implemented once approval is gotten from their authorities in foreign competition.
Amounts of money invested by both automakers differ as a result of the inflated value of Toyota. It was recognized as the very first Japanese company to reach 30 trillion yen (₦102 trillion) of annual sales in 2018. Suzuki was able to make about a tenth of that amount 3,871.5 billion yen (₦12.9 billion).
Both automakers made an announcement of the collaborations they had earlier in March. Part of this includes the production of Suzuki’s hybrid vehicles by Toyota. The vehicles would be in line with the Corolla and RAV4 estate particularly for the market in Europe.
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Toyota and Suzuki bosses, Akio Toyoda and Osamu Suzuki
Back in 2017, Toyota and Suzuki had an MOU (Memorandum of Understanding) signed to go into partnership, and recently released clear details of the agreement. They both agree that the MOU will combine “Toyota’s strength in electrification technologies and Suzuki’s strength in technologies for compact vehicles.”
Working as a team, both companies will create hybrid vehicles to cater to the market in India. As part of this, two vehicles after the Ertiga and Ciaz will be supplied by Suzuki to Toyota for the market in India while the African market will get four vehicles.
Akio Toyoda, Toyota boss has this to say about the alliance:
“We believe that the expansion of our business partnership with Suzuki – from the mutual supply of vehicles and powertrains to the domains of development and production – will help give us the competitive edge we need to survive this once-in-a-century period of profound transformation.”
Osamu Suzuki, Suzuki boss, was thankful to Toyota, saying:
“We appreciate the kind offer from Toyota to let us make use of their hybrid technology.”
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