On March 20, Toyota and Suzuki engaged 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.
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.
The two companies plan to establish and promote a long-term partnership for promoting collaboration in new fields, including the field of 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 24,000,000 shares of common stock in Suzuki 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.