ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Business deals

Toyota to invest $907m in Suzuki to boost self-driving tech

Suzuki to buy $453m stake in Toyota in expansion of their 2017 tie-up

In 2017, Toyota and Suzuki announced a comprehensive partnership in environmental and safety technology. An equity tie-up will help solidify their cooperation.

TOKYO -- Toyota Motor will invest 96 billion yen ($907 million) in Suzuki Motor, taking a stake of about 5% in the company, while Suzuki put about 48 billion yen of its own money into Toyota, forging an equity tie-up that will expand their ongoing technology partnership, Nikkei has learned.

The two automakers announced the capital alliance on Wednesday. They plan to work together on self-driving and other new technologies as the industry faces radical changes.

Toyota and Suzuki announced the tie-up in a joint news release on Wednesday, calling the execution of the capital alliance agreement the product of sincere and careful discussions between the two companies that will serve to promote future collaboration.

Toyota sold 10.59 million vehicles worldwide in 2018, making it the No. 3 automaker behind Germany's Volkswagen, which sold 10.83 million cars, and the French-Japanese alliance of Renault and Nissan Motor. Including Toyota's investments in Mazda Motor and Subaru brings its total sales to 13 million cars, rising to 16 million if Suzuki is included.

In 2017, Toyota and Suzuki announced a comprehensive technology partnership, focused on emissions and safety. Toyota is further along than Suzuki in electric cars, and provides it with hybrid vehicle technology. Suzuki is working with Toyota to roll out electric vehicles in India, where it has a strong foothold.

Toyota President Akio Toyoda and Suzuki Chairman Osamu Suzuki have both previously said they would "carefully consider" an equity tie-up. The two have decided that stronger financial ties are needed to solidify their cooperation on environmental and information technology, as well as joint development of components and products over the medium to long term, according to sources.

The timing of the deal comes amid rapid change in the auto industry. Semiconductor and telecommunications technologies are advancing, heating up the race to develop connected and self-driving cars.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media