Toyota takes a slice of Suzuki

Marco Green
August 30, 2019

In return, Suzuki confirmed it will snap up around 48 billion Yen worth of Toyota stock, around a 0.2 per cent share in the larger company.

Toyota North America CEO Jim Lentz on the automaker's line of cars and trucks, the outlook for the company and why tariffs are the company's biggest concern.

Suzuki is one of the world's leading small auto maker while Toyota is known for its bigger variants. "It appears to be very similar to the mutual investments made between Toyota and Mazda".

Toyota and Suzuki agreed in February 2017 to launch negotiations for a business partnership in areas such as environmental, safety and information technologies.

Suzuki's need for technology as the global automotive industry braces for all round disruption due to connected, autonomous and electric vehicle technologies is evident but its tentativeness with the partnership with Toyota was a result of the hangover from Volkswagen.

Toyota's global vehicle sales stood at 10.59 million units in 2018 including those of its subsidiaries such as minicar maker Daihatsu Motor Co. and truck and bus producer Hino Motors Ltd. Suzuki sold 3.33 million units worldwide.

Rival Nissan has an alliance with France's Renault, although that has been shaken following the ouster of former Chairman Carlos Ghosn, and with Mitsubishi Motors. Ford has teamed up with Volkswagen, while Honda and General Motors are working together.

Moreover, Suzuki will also supply its India-produced vehicles - Baleno, Vitara Brezza, Ciaz, Ertiga - to Toyota for the African market as well. Sales at Suzuki's Indian subsidiary fell 34 per cent in July, the worst decline in nearly seven years, as a slowdown in consumer spending, the largest driver of growth in the US$2.7 trillion economy, became more pervasive. Few in the world may have werewithall to battle the combined muscle- financial, expertise, and brand value- of Suzuki and Toyota in the journey to electric vehicles and subsequently to newer technologies like automated driving etc. The carmakers also said they plan to produce joint battery electric cars in India around 2020.

Other reports by Click Lancashire

Discuss This Article

FOLLOW OUR NEWSPAPER