Aug. 28, 2019 TOKYO—Toyota Motor Corp. added another Japanese car maker to its growing list of partners, saying Wednesday it would buy a 4.9% stake in Suzuki Motor Corp.
Toyota plans to spend ¥96 billion ($908 million) to acquire the shares in Suzuki. Japan’s largest car maker also owns a 5.1% stake in Mazda Motor Corp. and a 16.8% stake in Subaru Corp. It also made Daihatsu a fully owned subsidiary in 2016.
In March this year the two automakers announced a wide-ranging model sharing and technology exchange partnership.
Under the deal, Toyota will supply Suzuki with hybrid drivetrain technology globally. Suzuki hybrids are likely to appear first in India, a market where the automaker has a passenger vehicle market share of over 50 per cent.
In Europe, Suzuki will also gain new hybrid models based on the RAV4 crossover and Corolla wagon. Toyota's factories in Europe will also begin producing Suzuki vehicles for sale in the EU.
Across India and Africa vehicles will go the other way, with Toyota rebadging various made-in-India Suzuki models. Toyota's underused factories in India will also be put to work building Suzuki cars.
Toyota and Suzuki have announced a new capital alliance, which they say cements "the long-term partnership between the two companies for promoting collaboration in new fields, including the field of ...