Toyota Motor Corporation and Suzuki Motor Corporation have entered into an agreement for a capital alliance to establish and promote a long-term partnership between the two companies. They plan to promote collaboration in new fields including autonomous driving.
In order to develop and promote a long-term partnership between the two companies, the companies plan to acquire each other's shares based on the alliance. Toyota plans to acquire 2.4 crore shares of common stock in Suzuki or 4.94 per-cent ownership of the total number of shares issued by Suzuki as of March 31, 2019 (excluding treasury shares) with a total value of JPY 96 billion (Rs 6,517 crore) by underwriting the disposition of treasury shares by way of third-party allotment conducted by Suzuki. Likewise, Suzuki plans to acquire shares in Toyota, through purchase in the market, equivalent to JPY 48 billion (Rs 3,259 crore).
The two companies began considering this business partnership on 12 October 2016, and since then have continued to mull over specific details. On 20 March, this year, the companies announced that they would take specific steps in order to engage in joint product development and collaboration in production. This would be done in addition to promoting the mutual supply of products, by bringing together Toyota's strength in electrification technologies and Suzuki's strength in technologies for compact vehicles.