Toyota and Suzuki Enter into Capital Alliance Agreement

Aug 29, 2019 12:59 JST

Source: Toyota Motor Corporation

TOKYO, Aug 29, 2019 - (JCN Newswire) - Toyota Motor Corporation and Suzuki Motor Corporation hereby announce that the two companies entered into an agreement regarding a capital alliance (the Alliance) today, in order to establish and promote a long-term partnership between the two companies for promoting collaboration in new fields, including the field of autonomous driving.

Purpose of the Alliance

The two companies began considering business partnership on October 12, 2016, and since then have continued to consider specific details. On March 20 of this year, the companies announced that they would begin specific considerations in order to engage in joint product development and collaboration in production, 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.

Separately, 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. The two companies intend to achieve sustainable growth, by overcoming new challenges surrounding the automobile sector by building and deepening cooperative relationships in new fields while continuing to be competitors, in addition to strengthening the technologies and products in which each company specializes and their existing business foundations.

Specifically, to take up challenges together in this transitional era, the two companies plan to establish and promote a long-term partnership between the two companies for promoting collaboration in new fields, including the field of autonomous driving.

The execution of the capital alliance agreement is a confirmation and expression of the outcome of sincere and careful discussions between the two companies, and it will serve for building and promoting their future partnership in new fields.

Details of the Alliance

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 24,000,000 shares of common stock in Suzuki (4.94% 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) by underwriting the disposition of treasury shares by way of third-party allotment conducted by Suzuki.

Likewise, Suzuki plans to acquire, through purchase in the market, shares in Toyota equivalent to JPY 48 billion.

These share acquisitions will be implemented after the companies obtain approvals from the foreign competition authorities.

Contact:

Public Affairs Division
Global Communications Department
Toyota Motor Corporation
Tel: +81-3-3817-9926

Source: Toyota Motor Corporation
Sectors: Automotive

Related Press Release

Toyota Exhibiting at Beijing Motor Show 2024

April 25 2024 15:25 JST

TOYOTA GAZOO Racing takes a one-two in Croatian thriller

April 22 2024 09:47 JST

Toyota Launches All-New Land Cruiser "250" Series in Japan

April 18 2024 12:39 JST

Lexus presents Time at the 2024 Milan Design Week

April 16 2024 17:49 JST

New circuit challenge for TOYOTA GAZOO Racing

April 15 2024 16:21 JST

TOYOTA GAZOO Racing back on asphalt for Croatian challenge

April 12 2024 18:36 JST

Daihatsu and Toyota to Reform Structures towards the Revitalization of Daihatsu

April 08 2024 12:37 JST

Toyota Completes Toyota Technical Center Shimoyama Research and Development Facility for Making Ever-better Cars

April 02 2024 10:28 JST

TOYOTA GAZOO Racing roars to fourth successive Safari triumph

April 01 2024 09:47 JST

Toyota Releases Sales, Production, and Export Results for February 2024

March 28 2024 12:35 JST

More Press release >>

Latest Press Release

JCB enables JCB Contactless acceptance at Taichung MRT in Taiwan
Apr 26, 2024 10:00 JST

Mazda Production and Sales Results for March 2024 and for April 2023 through March 2024
Apr 25, 2024 18:21 JST

MHI Begins Operation of SOEC Test Module the Next-Generation High-Efficiency Hydrogen Production Technology at Takasago Hydrogen Park
Apr 25, 2024 17:45 JST

GAC Honda to Begin Sales of All-new e:NP2, the Second Model of e:N Series
Apr 25, 2024 16:50 JST

Toyota Exhibiting at Beijing Motor Show 2024
Apr 25, 2024 16:25 JST

Honda Reaches Basic Agreement with Asahi Kasei on Collaboration for Production of Battery Separators for Automotive Batteries in Canada
Apr 25, 2024 11:10 JST

UNIQLO Sponsors KAWS + Warhol Exhibition Tour, Starting in Pittsburgh
Apr 25, 2024 09:00 JST

Mitsubishi Power Begins Commercial Operation of Seventh M701JAC Gas Turbine in Thailand GTCC Project; Achieves 75,000 AOH To-Date
Apr 24, 2024 17:19 JST

MC and Denka Sign J/V Agreement in Fullerene Business
Apr 24, 2024 17:02 JST

Mitsubishi Motors Posts Record Sales in the Philippines in FY2023
Apr 24, 2024 13:56 JST

NEC Develops High-speed Generative AI Large Language Models (LLM) with World-class Performance
Apr 24, 2024 13:25 JST

Fujitsu SX Survey reveals key success factors for sustainability
Apr 23, 2024 10:25 JST

Fujitsu and METRON collaborate to drive ESG success: slashing energy costs, boosting productivity with new manufacturing industry solutions
Apr 22, 2024 16:09 JST

NEC Strengthens Commitment to Space Industry with Investment in Seraphim Space Venture Fund II
Apr 22, 2024 15:09 JST

Soft Space Launches the First and Only JCB Payment Gateway in Malaysia
Apr 22, 2024 15:00 JST

TOYOTA GAZOO Racing takes a one-two in Croatian thriller
Apr 22, 2024 10:47 JST

First-ever Mazda CX-80 Crossover SUV Unveiled in Europe
Apr 19, 2024 13:50 JST

Fujitsu develops technology to convert corporate digital identity credentials, enabling participation of non-European companies in European data spaces
Apr 19, 2024 10:17 JST

Mitsubishi Heavy Industries and NGK to Jointly Develop Hydrogen Purification System from Ammonia Cracking Gas
Apr 18, 2024 17:01 JST

Toyota Launches All-New Land Cruiser "250" Series in Japan
Apr 18, 2024 13:39 JST

More Latest Release >>