Toyota, Suzuki Purchase Stakes in Each Other
Toyota Motor Corp and Suzuki Motor Corp are strengthening their alliance by purchasing stakes in one another, a move that they term as a 'capital alliance.'
The move seeks to help both companies accelerate technological development and keep up with other car brands entering into partnerships with the same goal in mind.
The deal will see Toyota shell out around USD910 million (PHP47.5 billion) in Suzuki shares for a 4.94 percent stake, while the latter will get USD451.6 million (PHP23.6 billion), equivalent to 0.2 percent of Toyota's shares.
The sweetening relationship between Toyota and Suzuki began two years ago when the two car makers established ties to develop electric and self-driving cars together.
For Toyota, the deal adds another brand to the company's expanding partnership portfolio, which now counts Mazda Motor Corp. and Subaru Corp.
Japan's biggest car maker has also been looking to boost its clout on next-gen technology. Earlier this year, it announced that it will grant royalty-free licenses on nearly 24,000 patents it holds. The goal was to reduce by half the outlays for expanded electric and hybrid vehicle components in the China, Japan, and US.
For Suzuki, the deal gives the company leeway to keep abreast with the huge costs involved in research and development for self-driving functions.